ADGM Offshore Company Formation

Abu Dhabi Global Market (ADGM) offers an attractive option for offshore company formation, providing a sophisticated regulatory environment with several key benefits for international businesses.

Key Features of ADGM Offshore Companies

Ownership and Structure:

100% foreign ownership is permitted, eliminating the need for local partners
Minimum of one shareholder and one director required
Corporate directorships are allowed, with a minimum of one director
No minimum stated capital requirement

Tax Benefits:

Exemption from corporate income, and withholding taxes subject to applicable laws in UAE
Tax residency in the UAE, with the ability to apply for a tax residency certificate from the Ministry of Finance (subject to conditions)

Legal Framework: Based on English common law, providing a strong and familiar legal structure for international businesses

Independent legal jurisdiction with its own courts facilitating digital and in-person hearings

Business Activities: ADGM Special Purpose Vehicles (SPVs) can only act as passive holding companies

Non-financial businesses, financial businesses, and retail operations are permitted within ADGM

Formation Process

Choose Business Structure: Select the appropriate legal entity type, such as a Special Purpose Vehicle (SPV) or other permitted structures
Name Reservation: Reserve a company name through ADGM’s online portal
Business Plan: Prepare a detailed business plan including 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

ADGM offshore companies can open corporate bank accounts, subject to the bank’s due diligence procedures. Different banks offer varying features and fees, so it’s advisable to choose one that best suits your business needs

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 offers a fascinating option for businesses looking to establish a presence in a tax-friendly jurisdiction with strong legal protections and global market access. The streamlined setup process and flexible structure make it an attractive choice for international entrepreneurs and investors.