Why setup a financial services firm in the ADGM?
The ADGM is one of two onshore financial centres in the UAE. Established in 2015, it quickly rose through the rankings and is now counted as one of the top 25 financial centres in the world. ADGM’s innovative SPV regime, its initiatives in the fintech space and its issuance of the region’s first cryto-asset regulatory framework, have all contributed to its success.
Here are some specific advantages of establishing in the Abu Dhabi Global Market:
LEGAL AND REGULATORY FRAMEWORK:
- Legal framework supports cross-border activities
- 100% foreign ownership permitted
- No restriction on foreign talent or employees
- No restrictions on capital repatriation
- Zero tax for 50 years on profits, capital or assets from 2004
- Zero tax on employee income
- Well regarded, independent regulator
- Independent, English-speaking, common law judicial system
- Distinct from the UAE legal system
- Risk-based regulatory approach
- Central to regional deal making
- High concentration of international firms, investment funds, wealth management firms, banks, and financial institutions
- World-class regional and international law and auditing firms, and other professional services
- A growing fund domicile in the region
- Management offices, holding companies and family offices are located closer to the assets they own or manage
- The Middle East, Africa and South Asia (MEASA) is increasingly the centre of gravity for the global economy
- The UAE plays a central role in the growing South-South trade, principally between Asia and Africa
- Well-positioned to harness the potential of emerging markets.
Costs of Setting Up a Regulated Firm in the ADGM
Financial Services Regulatory Authority (FSRA):
The FSRA is responsible for reviewing and approving all app
The FSRA is responsible for reviewing and approving all applications for financial services. Costs depend on the activities applied for, which puts the applicant in one of five categories.
Generally, there are two components of FSRA fees. One – an application processing fee, and the other, an annual licensing fee.
Application fee: starts from US$ 5,000 per activity for a Category 4 license application.
License fee: starts from US$ 5,000 per activity for a Category 4 license.
Registration Authority (RA):
The RA helps to set up the legal structure of the ADGM Regulated Firm. Shareholders can be individual, or corporate. There are many options available, such as ‘Private Company Limited by Shares’ and ‘Limited Liability Partnerships’. In case of Private Company Limited by Shares, the costs for setting up include:
Application for reserving a name: US$ 200
Application for Incorporation of a Private Company Limited by Shares: US$ 1,500
Commercial License on Incorporation: US$ 4,000 (annual fee)
Business Activity fees: US$ 9,000 (annual fee)
The data protection notification is part of the process of registering a new entity in the ADGM. The costs involved are as follows:
Registration - US$ 300
Annual renewal – US$ 100
Every entity registered in the ADGM is required to lease a physical office. You can choose from business center options, or physical spaces within the ADGM.
Here is an indication of the prevailing rates:
Business Centre – from a one-desk office at US$ 19,000.
Fitted Offices – from US$ 55 per square foot.
Establishment Card Application – US$ 273
E-channel – US$ 1,100 (one-time)
E-channel deposit – US$ 1,360
Visas (per visa) – from US$ 1,500
|FSRA Application Fee(Form)||5,000|
|FSRA License Fee(Form)||5,000|
|Application for reserving a Name||200|
|Application for Incorporation||1,500|
|Business Activity Fee||4,000|
|Data Protection Registration||300|
|Office Spaces(business center), from||19,000|
|Fitted Offices from||40,000|
|Establishment Card Application||273|
Our services include assistance in:
• Reviewing the business model and advice on the applicable regulatory framework;
• Preparation of the Regulatory Business Plan and comprehensive financial projections;
• Preparation of all policies, processes and manuals required;
• Provision of Outsourced Compliance Officer and Outsourced Finance Officer services;
• Finalising the legal structure, including holding company setup and customisation of Memorandums; and
• Finalisation of leased space, bank account opening and obtaining Financial Services Permissions.
For More Details about Cost Structure of a regulated firm in the ADGM, Do Contact Us