Abu Dhabi Global Market, commonly known as ADGM, is one of the UAE’s most respected business jurisdictions. It attracts startups, financial institutions, holding companies, and global investors.
If you are planning to set up a company in Abu Dhabi with strong legal backing and international credibility, ADGM is worth considering.
This guide explains how ADGM company setup works, its benefits, entity types, costs, and how Helen and Sons can support you.
What Does ADGM Mean?
ADGM stands for Abu Dhabi Global Market. It is an international financial centre located on Al Maryah Island in Abu Dhabi.
ADGM operates under an independent legal framework based on English Common Law. It features a common law judicial system, aligning with international legal standards to facilitate business operations and boost investor confidence.
ADGM is governed by three independent authorities: the Registration Authority, the Financial Services Regulatory Authority (FSRA), and ADGM Courts. ADGM Courts, as one of these authorities, operate under a digital-first infrastructure and follow an independent English Common Law framework, making them the first digital court in the Middle East.
According to ADGM’s official website, the free zone hosts over 2,000 registered entities across finance, tech, and professional services.
Is ADGM a Free Zone?
Yes, ADGM is a financial free zone in Abu Dhabi, offering 100 percent foreign ownership and full profit repatriation.
Companies registered in ADGM don’t need a local sponsor, and they can also benefit from zero corporate tax for qualifying income under UAE tax rules.
ADGM is supervised by its own authorities, including the Registration Authority and the Financial Services Regulatory Authority (FSRA). The Registration Authority deals with the incorporation and licensing process during the ADGM company setup, while the FSRA ensures a transparent and progressive environment for companies to operate in the ADGM Freezone. These authorities keep an eye on both the company setup process and ongoing operations within ADGM.
Key Benefits of ADGM Company Setup
ADGM offers a range of strong advantages for businesses targeting the regional and international markets.
Some of the key benefits include:
- 100% foreign ownership allowed
- English Common Law legal system in place
- Zero import and export duties within the zone
- No currency restrictions
- Access to Abu Dhabi’s financial ecosystem
- Convenient business procedures with streamlined and efficient company setup processes
- 0% personal income tax rate and 9% corporate income tax rate in some cases
- Business-friendly environment with a robust regulatory framework
- Convenient location for international business connections with major financial hubs
- Contribution to economic development in Abu Dhabi and the wider region
ADGM also ranks among the fastest-growing financial centres in the Middle East.
Types of Legal Entities in ADGM
ADGM offers a range of business structures to suit different business goals and ownership models, including private limited companies, limited liability partnerships and other legal entities. Certain entities, like Special Purpose Vehicles (SPVs), benefit from a separate legal personality, which helps to isolate financial and legal risks from shareholders and related entities. ADGM companies can be formed as Public Companies Limited by Shares, Private Companies Limited by Shares, Unlimited Companies, Branches of Foreign Companies, and Investment Companies.
1. Private Company Limited by Shares
This is the most common structure for startups and small to medium-sized enterprises (SMEs). It offers limited liability and flexible ownership.
2. Public Company Limited by Shares
This is more suitable for larger enterprises planning public offerings or large-scale investments.
3. Branch of a Foreign Company
This is ideal for overseas companies looking to expand into Abu Dhabi without setting up a new entity.
4. Limited Liability Partnership
This is often used by professional firms such as consulting or audit practices.
Company Types Allowed in ADGM
ADGM supports a wide range of permitted business activities, including non-financial, retail and financial businesses. Licenses are available for setting up financial businesses, such as investment companies, as well as non-financial and retail operations. Investment companies are a recognized company type in ADGM, subject to regulatory requirements.
Common company types include:
- Financial services companies
- Investment companies
- Holding companies
- Fintech and blockchain firms
- Asset management firms
- Professional service providers
- Family offices
ADGM companies can be formed as Public Companies Limited by Shares, Private Companies Limited by Shares, Unlimited Companies, Branches of Foreign Companies, and Investment Companies.
Technology and innovation-led businesses benefit from ADGM’s startup-friendly policies.
Step-by-Step Process to Set Up a Company in ADGM
To establish a company with ADGM, the company type must be clearly defined before starting the registration process. Setting up a company in ADGM follows a clear digital process that involves choosing a legal structure, preparing a business plan, and registering with the Registration Authority via the online portal.
Step 1: Choose Business Activity
Select an approved activity based on ADGM guidelines, ensuring that only permitted business activities as defined by ADGM can be selected. Some activities may require special approval.
Step 2: Select Legal Structure
Selecting the appropriate business structure is a key step in the ADGM company setup process. Choose the appropriate entity type such as private limited company, branch office, or other business structures like LLP, PLC, and SPV offered by ADGM.
Step 3: Reserve Company Name
A proposed company name must be submitted for approval and reservation. The name must comply with ADGM naming rules and should not conflict with existing entities.
Step 4: Submit Application
File the incorporation application through ADGM’s online portal with required documents, including passport copies, Emirates ID, proof of address, and a detailed business plan. The business plan should clearly outline your proposed activities, include a comprehensive market analysis, present financial projections, and define your overall business strategy.
Step 5: Lease Office Space
Every ADGM company must have a registered address within Al Maryah Island, and companies can choose from various office options, including business centres such as Regus Business Centre and co working spaces that offer flexible, shared environments with amenities and business support services.
A physical office space within ADGM is mandatory for most companies to validate their license and registration, except for Special Purpose Vehicles (SPVs). This requirement adds to the overall setup costs.
Step 6: Obtain Commercial License
Once approved, the Registration Authority issues the license and incorporation certificate.
Requirements for ADGM Company Formation
The documentation depends on the company type and shareholders.
Common requirements include:
- Passport copies of shareholders and directors
- Proof of address
- Business plan summary
- Memorandum and Articles of Association
- Board resolution for corporate shareholders
Some regulated activities may need additional approvals.
Cost Overview of ADGM Company Setup
The cost of setting up a company in ADGM varies by activity and office type.
Estimated cost breakdown:
- Registration fees: USD 6,000 to USD 15,000, depending on business activity. ADGM divides business registration costs into three categories: Category A (Financial Services) costs $15,000, Category B (Non-Financial Services) costs $10,300, and Category C (Retail) costs $6,000.
- Annual business license renewal fees: Category A (Financial) costs $13,000, Category B (Non-Financial) costs $8,000, and Category C (Retail) costs $4,000.
- Minimum share capital requirements: Capital requirements vary by business activity, with a typical minimum share capital of USD 10,000 for many entities.
- Office space: Businesses in ADGM must have a physical office space to validate their license and registration, which adds to the overall setup costs.
- Visa costs: Companies must pay visa-related costs if they hire foreign employees, with new employment visas ranging from $530 to $1,021 depending on the duration and location of the visa.
- Data protection fees: Initial registration cost of $300 and an annual renewal fee of $300.
- Additional activity costs: Companies may incur extra costs for approvals from relevant authorities if operating in regulated industries such as finance or healthcare.
After obtaining the business license, it is important to open a corporate bank account, which will be used to manage all company financial transactions securely and officially.
Total ADGM company setup costs typically start from AED 25,000 onwards.
For accurate pricing, professional consultation is recommended.
How Can Helen and Sons Help?
Helen and Sons provides end-to-end ADGM company formation services.
We assist with activity selection, legal structure advice, documentation, and licensing. Our team also supports office leasing, visa processing, and post-setup compliance. As part of our service, we help clients develop a comprehensive business strategy and conduct market analysis to ensure a strong business plan for ADGM licensing. We also assist with opening a corporate bank account to manage all company financial transactions securely and officially.
With local expertise and transparent pricing, we help businesses launch in ADGM without delays.
Whether you are a startup, holding company, or international firm, we simplify the ADGM setup journey.
