ADGM Offshore Company Formation

Abu Dhabi Global Market (ADGM) is an attractive destination in terms of establishing offshore companies and is quite beneficial to foreign firms mainly due to the advanced modern regulatory framework.

Key Features of ADGM Offshore Companies

Ownership and Structure:

Foreign ownership is allowed to 100 percent; there is no requirement of local partners anymore
At least one director and one shareholder will be needed
Corporate directorships are welcome and the minimum number of directors must be one
No minimum stated capital requirement

Tax Benefits:

Alpha Equity helps you benefit from exemption from corporate income and withholding taxes, subject to applicable laws in the UAE.
The UAE tax residency allowing obtaining a certificate of tax residency of the Ministry of Finance (under conditions)

Legal Framework: According to English common law, giving international businesses a solid and comfortable legal framework

Autonomous legal jurisdiction that would have some courts where digital/physical hearings could take place

Business Activities: The ADGM Special Purpose Vehicles (SPVs) can be used in a passive position as a holding company only

Non-financial businesses, financial businesses and retail operations are allowed in ADGM

Formation Process

Choose Business Structure:Choose the legal entity form e.g. Special Purpose Vehicle (SPV) or other legal form allowed
Name Reservation: Get a company name reservation on the online portal of ADGM
Business Plan: Develop an elaborate business plan that has operations, financial projections and strategy
Document Submission: Gather and submit required documents, including:
- Passport copies of shareholders and directors
- Two colored passport-size photos with a white background
- Proof of share capital (if required)
- Completed application form
Pay Fees: Submit the necessary setup and licensing fees
Obtain License: Once approved, receive your commercial license to commence operations

ADGM offshore companies must adhere to certain compliance requirements:

Maintain accurate accounting records
Conduct annual audits (if required)
Report on beneficial ownership information
File annual returns and accounts Banking

Corporate bank accounts are allowed to be opened by ADGM offshore companies with banking institutions but dependent on diligence processes by the bank. The features and costs that are charged are different among the banks, so it is recommendable to settle on a bank that meets your needs in business.

Advantages of ADGM Offshore Companies

Flexibility: Allows for a bespoke Memorandum of Association, providing high flexibility in company structure
Transparency: Public register available for searches, enhancing credibility
Global Market Access: Strategic location and excellent connectivity for international business
Sophisticated Regulatory Environment: Ideal for financial and non-financial entities seeking a robust framework

ADGM offshore company formation comes as an exciting prospect to companies searching to form an establishment in a jurisdiction that is tax friendly, with excellent legal protection and access to international markets. Its simple establishment procedure and laxity are the reasons why it is a preferable platform to foreign entrepreneurs and investors.