ADGM Company Setup Guide 2026

Abu Dhabi Global Market (ADGM) is one of the most important business hubs in the UAE. It sits on Al Maryah Island in Abu Dhabi. It is built for global finance, fintech, family offices, and holding companies. When you plan an ADGM company setup, you are not just opening a business. You are entering a whole ecosystem with its own laws, courts, and clear rules.

This guide explains ADGM business setup in simple terms to help those who want to start their own ADGM company. It is written to be safe, accurate, and valuable for real decisions. It is written to be safe, accurate, and valuable for real decisions. You will learn what the ADGM free zone is, how the ADGM legal framework works, why English common law in ADGM matters, and how the ADGM authority, Abu Dhabi, and ADGM courts and regulations protect you.

What Is ADGM?

ADGM is an international financial centre in Abu Dhabi. It is a special economic zone with its own laws, rules, and courts. It focuses on:

• Banks and financial services
• Asset management and funds
• Fintech and digital assets
• Holding companies and SPVs
• Family offices and wealth planning

It works as a free zone so that foreign owners can hold 100% of their company shares. At the same time, it follows English common law in ADGM, which gives comfort to global investors and lawyers.

When people talk about the Abu Dhabi Free Zones, they mean this complete package: a safe legal system, tax‑friendly rules, and strong regulation on Al Maryah Island.

Why Choose ADGM for Company Setup?

Before you start any ADGM company formation, you should know why it is different from other zones.

Key benefits:

• 100% foreign ownership
• No personal income tax in the UAE
• 0% corporate tax on many holding and passive activities (subject to UAE tax rules)
• Clear legal framework ADGM based on English common law
• Independent ADGM courts & regulations
• Strong brand name with banks, funds and global partners
• Location in Abu Dhabi, close to government, sovereign wealth funds, and large family offices

This mix makes the Abu Dhabi free zone very popular for cross‑border structures, regional HQs, and regulated financial firms.

How the ADGM Legal Framework Works

The ADGM  framework is one of its biggest strengths. It is built on English common law, ADGM, not on local civil law.

What this means for you:

• Company law, contract law, and many other rules are based on English law.
• There are clear regulations for companies, funds, fintech, AML, and data protection.
• Experienced judges sit in the ADGM courts and the regulations system and decide disputes.

This legal setup helps with:

• Shareholder agreements
• Option plans and ESOPs
• Cross‑border contracts
• Fund and SPV structures
• M&A, joint ventures and exits

If you are used to London, Singapore or Hong Kong-style documents, the ADGM company set-up will feel familiar.

Who Regulates ADGM?

You must know who is in charge before you start an ADGM business setup.

The central bodies are:

ADGM authority Abu Dhabi

• Overall, the free zone manager
• Works with the Abu Dhabi government

Registration Authority (RA)

• Handles incorporation, licenses and company records

Financial Services Regulatory Authority (FSRA)

• Regulates banking, investment, fintech and other financial services

ADGM courts

• Hear civil and commercial cases.
• Apply the ADGM English common law.

Together, they form the ADGM framework. This gives structure and control around every ADGM business setup.

Types of ADGM Business Setup

There is no single type of company in ADGM. You choose the one that fits your goal.

Common structures:

• Private company limited by shares (LTD)
• Branch of a foreign company
• Limited Liability Partnership (LLP)
• Special Purpose Vehicle (SPV)
• Foundation
• Regulated financial firm (e.g., asset manager, broker, fintech)

For a simple holding company, people often use an SPV or an LTD. For a regulated fund manager, they apply to FSRA within the Abu Dhabi free zone.

Step‑by‑Step ADGM Company Formation Process

Here is a simple process for a non‑regulated ADGM company setup (for example, a holding or consulting company). Regulated firms have extra steps with FSRA.

Step 1: Define your activity

• Decide if your work is financial (needs FSRA) or non‑financial.
• Everyday activities: holding shares, consulting, tech services, and family office services.
• Make a basic business plan, even if short.

Step 2: Choose legal form

• Pick LTD, branch, SPV, or other entity type.
• Check what share capital makes sense for your case (often from USD 10,000–100,000+ for normal companies; regulated firms may need more).

Step 3: Prepare documents

You will generally need:

• Passport copies of all shareholders and directors
• Proof of address (utility bill or bank statement)
• CVs for key people
• Draft Memorandum and Articles of Association
• Board resolution if a corporate shareholder is involved
• Simple business plan and source‑of‑funds explanation

This supports the ADGM legal system and AML rules.

Step 4: Secure an office address

• Every ADGM company needs a registered address on Al Maryah Island.
• You can start with a flexi‑desk or service office through a business centre.
• Some SPVs may have special rules, but a presence is still expected.

Step 5: Apply online

• Submit your application through the ADGM portal or through a service provider.
• The Registration Authority will review and ask questions if needed.

Step 6: Receive in‑principle approval

• When the review goes well, you get an approval in principle plus a fee invoice.

Step 7: Pay fees and receive a license

• Pay government fees.
• Get your Certificate of Incorporation and commercial license.
• Open a bank account and start operations.

For a standard, non‑regulated ADGM business setup, this can take about 4–8 weeks if documents are ready and answers are fast.

ADGM Courts and Regulations

A key reason people trust ADGM is its court system and rules.

ADGM courts

• Independent from local Abu Dhabi courts
• Use the English common law ADGM.
• Hear disputes on contracts, shareholders, employment, and more.
• Allow foreign lawyers to appear in some matters.

ADGM regulations

The ADGM legal framework includes:

• Companies Regulations
• Insolvency Regulations
• Commercial Licensing Regulations
• Data Protection Regulations
• FSRA Rulebooks for financial firms

This structure means that an ADGM company startup is not just a license. It sits inside a complete, clear rule book, which helps with YMYL‑type trust and long‑term planning.

ADGM Company Set-Up Costs and Ongoing Duties

Actual numbers change by activity, but you should plan for several cost areas in any ADGM business setup:

Cost Item	Range (AED)	Notes
Registration Fee	10,000 – 16,000	LLC/SPV one-time; Category A higher
License Fee (Annual)	10,000 – 50,000	CAT 1: AED 10K; Crypto/CAT 3: AED 40K+
FSRA App Fee	5,000 – 25,000	Finance only; waived for consulting
Flexi-Desk Office	40,000 – 60,000/yr	Al Maryah Island shared space
2 Visas	6,000 – 12,000	Owner + employee/family
Compliance/Legal	15,000 – 25,000	ADGM legal framework docs, KYC
Bank Account	2,000 – 5,000	Source of funds checks
Year 1 Total	50,000 – 150,000	Scales by license type

Ongoing duties include:

• Keeping proper books and records
• Filing annual returns and accounts
• Keeping shareholder and director data updated
• Following AML, KYC and sanctions rules
• Respecting all ADGM courts and regulations

If you ignore these duties, the ADGM authority in Abu Dhabi and the Registration Authority can fine or strike off the company.

ADGM vs Other Free Zones

It helps to know how the ADGM free zone compares to other UAE zones.

Simple view:

• If you need strong finance rules, independent courts, and English common law in ADGM, pick ADGM.
• If you need light‑touch trading or warehousing, another free zone may be cheaper.
• If you are a startup looking for pure tech and co‑working, you might compare ADGM with DIFC, Hub71, or Dubai Internet City.

But for pure ADGM company setup around funds, SPVs, holdings, family offices, and cross‑border deals, ADGM has a clear niche.

Everyday Use Cases for ADGM Business Setup

Here are common reasons people choose a company setup ADGM:

• Holding company for regional shares

Own UAE and foreign subsidiaries under ADGM SPV or LTD.

• Family office and wealth planning

Manage assets, properties and investments in a structured way.

• Fintech or finance business

Get an FSRA license for payments, asset management, or brokerage.

• Fund structure

Set up a fund manager and fund vehicles using the ADGM framework.

• IP and licensing hub

Hold trademarks, patents, and license them to the group.

In each case, the mix of ADGM free zone, strong courts, and clear rules reduces legal risk.

Risk and Compliance in ADGM

Because ADGM is a respected financial centre, it has high standards. This is good, but you must be ready.

Key points:

• Detailed due diligence on shareholders and directors
• Source‑of‑funds and source‑of‑wealth checks
• Ongoing AML monitoring if you are regulated
• Possible on‑site inspections by FSRA for financial firms

The strong ADGM legal system and active ADGM authority in Abu Dhabi make the jurisdiction safe for investors. But it also means a “shell” company with no real substance is not welcome.

Basic Checklist When Starting Your Business in ADGM

Use this checklist before you start your ADGM company setup:

• Business activities are clearly defined
• Legal entity has been identified and correctly set (LTD, SPV, branch, etc.)
• All shareholder and director docs are prepared. 
• MOA and AOA drafts are prepared, and compliance with ADGM legislation is verified
• The office or flexi-desk option on Al Maryah Island is chosen
• Budget is set for setup and annual fees
• For financial services: Plans for FSRA license are in place
• Bank account strategy is set (which banks you will approach)

This list helps to minimise risks and surprises during ADGM business setup.

You can contact the professional team of PRO Services in Dubai for more help. They are licensed Business setup consultants in Dubai with over 12+ years of experience in providing PRO Services Dubai. 

Frequently Asked Questions 

Q1: Is ADGM a free zone?

Yes. ADGM is a special economic zone on Al Maryah Island. It is often called an ADGM free zone because it allows 100% foreign ownership and has its own laws and courts.

Q2: Why is English common law important in the ADGM?  

It is essential because it provides familiarity to international investors. English common law makes contracts and company law less complicated. Consequently, there is less legal risk, and it becomes easier to obtain funding and execute cross-border transactions.

Q3: Who manages the ADGM?  

The ADGM manages the ADGM authorityin  Abu Dhabi, which supervises the entire centre. The Registration Authority is in charge of company registries. FSRA is in charge of the regulation of financial services. Courts from ADGM, along with the other bodies of regulation, manage the lawsuits and other rules.

Q4: How long does the ADGM company setup take?

For a simple, non‑regulated firm, it can take about 4–8 weeks once your documents are ready. For FSRA‑regulated firms, it can take several months because of deeper checks.

Q5: Can I move an existing company into ADGM?

In many cases, yes. You can set up a holding company in ADGM and move shares, or re‑domicile, subject to rules. You should get legal advice to plan this safely within the ADGM legal handle.

Final Thoughts on ADGM Business Setup

Setting up in ADGM is more than getting a free zone license. A proper ADGM company setup gives you:

• A strong legal base using English common law in ADGM
• Protection from independent ADGM courts and regulations
• The backing of the ADGM authority, Abu Dhabi, as a serious, global centre
• A respected address on Al Maryah Island
• A structure that banks, funds, and partners trust

If you want a simple trading firm only, another free zone may be enough. But if you want long‑term value, serious investors, and a clear legal system, an ADGM business setup is worth deep consideration.

You can use this guide as a starting point. For any final decision, always speak to a licensed advisor from PRO Services in Dubai. This keeps your plan safe, compliant, and ready to grow.