TECH REVOLUTION ON A BUDGET: ABU DHABI GLOBAL MARKET’S AFFORDABLE TECHNOLOGY LICENSES

This article was updated on July 6th, 2023

This article has been researched and written by Scott Cairns and the team at Creation Business Consultants and has not used AI in generating this article.

The Abu Dhabi Global Market (ADGM), a global financial hub situated in the UAE’s capital, serves as a gateway to the developing economies of the Middle East, North Africa, and South Asia.

Any corporate organisation or individual forming a corporation in the ADGM is permitted to have 100% foreign ownership and is governed by the same legal, business, and regulatory framework as the UK. The ADGM also includes the ADGM Courts, whose common law-based organisational structure enables registered corporations to rely on a well-established body of precedents.

TECHNOLOGY MARKET IN DUBAI & THE UAE

Technology startups now have the option to enter the UAE marketplace with the ability to obtain an Abu Dhabi free zone business license starting as low as USD $700. The 700 USD fee is for the first 2 years only, they then get a still reduced rate of 4000 USD for the 3 years after this, after the 5-year total period the license prices revert to standard ADGM market rates. This is a great incentive for those that are looking to start a company in Abu Dhabi. Furthermore, technology startups will have a legal presence and a company trade license that is fully compliant.

ADGM OFFERS COMPANIES SEVERAL BENEFITS

• 100% foreign ownership.
• 9% corporate tax rate.
• No restrictions on repatriation of profits.
• Exemption from the UAE Federal Civil and Commercial laws.
• Access to regional wealth and or investment opportunities.
• Wide network of double taxation treaties available to the UAE.
• No exchange controls – free capital convertibility.
• Transparent operating environment with high standard regulations.
• Strict supervision and enforcement of Anti-Money Laundering (AML) laws.
• Capital structuring flexibility.
• Availability of a skilled labour force and highly trained professionals.

The start-up license is industry-neutral and enables business owners to get an ADGM operational license, benefiting from the same internationally acknowledged operating standards that current ADGM funds, multinationals, SMEs, advisers, and other registered companies enjoy. The ADGM is a distinctive regional platform built on the English Common Law that is favoured by bankers and other stakeholders for use in a variety of capital-raising, structuring, and investing activities. It provides start-ups with the best foundation and most supportive environment for capitalisation and growth.

ABU DHABI GLOBAL MARKET (ADGM) COMPANY LICENSE DETAILS

This license type is applicable to technology  focused companies that are looking to start a company in ADGM free zone only. A great advantage is that this license permits new companies to be eligible for up to four (4)  UAE residency visas. Additionally, this license will enable the company to complete the mandatory office rental requirements that will permit a new technology startup company to have a registered business address. The license is available through a variety of technology activities all from as little as USD $700 or AED 2,570.

ADGM PLATFORMS

ADGM free zone also introduced a platform known as Professional Services Support Programme which supports and develops entrepreneurs in various sectors and adds value to their business, all whilst improving and expanding on their skills. Professional Services Support Programme aims to cover subjects in the areas of: legal, compliance, finance, accounting and Value-Added Tax (VAT).

The programme aims to meet the rising demand for business-building skills as part of its commitment to support the region’s rapidly expanding start-ups. The program, which was the first of its kind in the UAE, was developed in collaboration with eminent local and international advisers with the goal of assisting business owners in all sectors to improve their ventures’ ability to attract investors and scale up. The support offered by the several industry-specific incubators and accelerators in Abu Dhabi and the UAE, to which start-ups with an ADGM registration have access, is supplemented, and increased by this program.

The tech-start up license and Professional Services Support Programme provide tangible solutions to address setup costs, access to funding and business support,” said ADGM Registration Authority CEO Dhaher Bin Dhaher Al Mheiri. “

COMPANY STRUCTURE IN ADGM

The advantages of an ADGM company structure combined with Abu Dhabi Government focusing on providing excellent support initiatives and a better entrepreneur ecosystem are just some of the attractive pull factors for those that are considering company formation in Abu Dhabi. The government supports such initiatives to appeal to new business startups and innovation, strengthen the economy, develop, and stimulate entrepreneurial spirit.

TAKEAWAY

ADGM is becoming an ideal platform for companies that are looking to startup or expand to the UAE and GCC. With the available license services and the Professional Support Programme, entrepreneurs will be able to influence top-tier ecosystems of investors, private equity firms, seek partnerships to operate and maximise their business.

If you are contemplating the idea to start a business or expand a business to Dubai and the UAE. Or if you wish to know more about ADGM or other company setup option, contact our Corporate Structuring team for a free no commitment consultation on [email protected] or call +971 4 878 6240.

Scott Cairns,
Managing Director