ADGM (Abu Dhabi Global Market) is an English common law free zone in Abu Dhabi. Key entities: Private Company Limited by Shares, LLP, Branch. Financial services require FSRA authorisation. Non-regulated activities: ADGM Registration Authority only. First-year cost: USD 8,000–30,000. ADGM is particularly strong for family offices, funds, and fintech.
ADGM entity types
- Private Company Limited by Shares: The standard ADGM company — 1 to 50 shareholders. No minimum capital for non-regulated activities. Used for holding companies, SPVs, professional advisory, and tech companies.
- Limited Liability Partnership (LLP): For professional partnerships. Common for law firms, accounting firms, and multi-partner advisories. Partners have limited liability.
- Branch of a Foreign Company: For international firms registering a presence in ADGM without a separate legal entity. The parent retains full liability for the branch.
- Recognised Bodies and Investment Funds: For funds, collective investment schemes, and specialist financial vehicles — require FSRA authorisation and ongoing supervision.
ADGM family office framework
ADGM has developed the most comprehensive family office regulatory framework in the UAE:
- Single Family Office (SFO): A private entity managing assets exclusively for a single family — no FSRA licence required as long as no third-party investment management is conducted. ADGM registration only.
- Multi-Family Office (MFO): Managing assets for multiple families — requires FSRA Category 3C (managing assets) or Category 4 (advising) licence.
- Family holding structures: ADGM LLPs and Private Companies are commonly used as the top-level holding vehicle for family businesses, connected to operating companies in UAE and internationally through a common law, English-language framework.
Abu Dhabi’s proximity to sovereign wealth, the ADGM common law framework, and the family office-specific regulatory guidance make ADGM the top choice for HNW families restructuring their assets. ADGM also has a bilateral arrangement with the UK FCA, making it easier for London-based financial services firms to passport into the Gulf.
ADGM company formation costs 2026
| Cost Item | Amount | Notes |
|---|---|---|
| ADGM registration fee | USD 1,500–4,000 | Private company or branch; varies by authorised capital |
| Annual supervision/authority fee | USD 3,000–8,000 | Payable annually from Year 1 |
| Office / registered address | USD 2,000–15,000 | ADGM Al Maryah Island; flexi-desk available |
| Professional formation fee | USD 1,500–5,000 | Advisor fee |
| FSRA licence (if required) | USD 5,000–15,000 | Application + annual supervision fee |
| Total Year 1 (non-regulated) | USD 8,000–27,000 |
Setting up a family office or financial services firm in ADGM?
We advise on ADGM entity structure, FSRA licensing, and handle the full registration. Fixed fee.
Frequently asked questions
What is the difference between ADGM and DIFC?
Both are English common law free zones with own regulators. ADGM is in Abu Dhabi (FSRA regulated); DIFC is in Dubai (DFSA regulated). ADGM is relatively newer (2015) but has grown rapidly — particularly for family offices, private wealth, and Abu Dhabi-focused businesses. DIFC has a larger community and established infrastructure for investment banking. For family offices and sovereign wealth-adjacent business: ADGM. For investment banking and large international firms: DIFC or ADGM.
Does a ADGM company need to audit?
Yes — all ADGM entities must file audited financial statements annually with the ADGM Registration Authority, prepared under IFRS. FSRA-regulated entities have additional regulatory reporting requirements. The ADGM RA publishes a list of approved auditors — only these firms can audit ADGM entities.
Can an ADGM company be a QFZP for UAE Corporate Tax purposes?
Yes — ADGM is a recognised UAE free zone for CT purposes. An ADGM company that meets the QFZP conditions (qualifying income, de minimis non-qualifying revenue, adequate substance, IFRS audit) can elect QFZP status and benefit from the 0% CT rate on qualifying income.
How long does ADGM company formation take?
ADGM company registration (non-regulated): 5–10 business days after all documents are accepted. FSRA licence applications: 3–6 months (complex financial activities may take longer). Family office (SFO) registration: typically 1–2 weeks as no FSRA licence is required for single-family structures.