Cost of Setting Up a Regulated Firm in the ADGM - 10 Leaves

  • 01-06-2020
The ADGM is an upcoming international financial centre in the MENA region for business and fintech. The quality of ADGM’s independent regulator, the prevailing common law framework, excellent infrastructure and tax efficiencies make it the perfect base to take advantage of the rapidly growing demand for financial and business services in Abu Dhabi and the greater MENA region.  
 

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. 

Specific Advantages:

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

TAX BENEFITS:

  • Zero tax for 50 years on profits, capital or assets from 2004
  • Zero tax on employee income

COUNTERPARTY CONFIDENCE:

  • Well regarded, independent regulator
  • Independent, English-speaking, common law judicial system
  • Distinct from the UAE legal system
  • Risk-based regulatory approach

DIVERSE ECOSYSTEM:

  • 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

GEOGRAPHIC EPICENTRE:

  • 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:
 
Setting up an ADGM Regulated Firm involves the following interactions:

 

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)

 

Data Protection:

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

 

Office spaces:

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.

 

Visas:

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 

 

Costs Summary:

 

  US$
FSRA Application Fee(Form)  5,000
FSRA License Fee(Form)  5,000
Application for reserving a Name     200
Application for Incorporation  1,500
Commercial  License  4,000
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
E-Channel   1,100
E-Channel deposit   1,360

 

Our Services:
We provide turnkey services for Setting up a regulated firm in the ADGM. From fintech consulting, to assistance in authorisations, to assistance in preparation of the legal documentation, 10 Leaves helps you navigate the FSRA Rulebook and submit an application that is comprehensive, complete and compliant.
 
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

 

 

Get In Touch With Us
 
 
 

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