How to Apply for an ADGM Free Zone Trade License

As said before, ADGM offers financial, non-financial, and retail licenses. Several business activities are authorised under each type of license.

Financial Business Activities – ADGM is one of the top free zones supporting financial activities. The comprehensively formulated infrastructure supports the efficient setup and smooth operation of a financial institution. The financial business activities authorised in ADGM include:

• Digital Banking Services
• Private Banking
• Investment Banking
• Brokerage
• Capital Market
• Wealth Management Services
• Fund Management

Non-financial Business Activities – Non-financial businesses also have equal growth opportunities in ADGM. Some of the non-financial sectors active in ADGM are:

• Management Consultancies
• Digital Marketing
• Accountancy
• Real Estate
• Management Consultancy Services
• Legal Entity
• Auditing and Accounting

Retail License Business Activities – Investors interested in other business sectors can choose the Retail License to set up business in the ADGM Free Zone. This license can be used for business activities like:

• Maintenance and repair activities
• Jewellery design and production
• Furniture manufacturing
• Wholesale and retail business
• Production of leather goods
• Art and entertainment
• Videography and photography business
• Tour and travels
   

Company formation in the ADGM free zone is beneficial in several ways. Foreigners can start their business in ADGM without a local sponsor or local support. 100% foreign investments, as well as 100% repatriation of profits, are the two main aspects attracting global investments. The other major advantages of forming a company in ADGM are:

• A comprehensive business environment comprising legal, auditing, accounting, servicing, and support systems. Making the business activities smooth and comfortable.
• A vibrant ecosystem enabling collaboration with supportive business sectors.
• Single license permitted for a group of business activities within the scope. No need for multiple licenses, as in the case with many other free zones and mainland business.
• Flexible office setup solutions and packages, which can be chosen according to the budget and business needs.
• Pursuing internationally accepted business regulations and practices, the free zone makes itself convenient to global investors.
• Streamlined flawless business setup process.
• The common English Law system, with which the entrepreneurs across the world are well versed.
• Strategically advantageous location that connects businesses with potential markets in the MEASA region.

Click here to learn more about the benefits of setting up a company in the ADGM Free Zone

How to apply for an ADGM trade license, how to set up a business in ADGM, and company formation in ADGM; all these questions lead to a common answer. Business setup process in the ADGM Free Zone. However, you may confirm and prepare the documents required before commencing the company formation process.
Hiring an approved business setup service would be useful at this point. The expert business setup agent will help in concluding the procedure in your preferred timeframe, besides suggesting the cost-effective package, budget-friendly options, etc. We state “approved” business setup agent, since an approved agent would be reliable, unlike several firms, which are, unfortunately, not approved by the authority.

Documents required for company formation in the ADGM free zone are:

• Copies of passports of owner/ shareholder (s)
• Emirates and UAE visa (if applicable)
• Sample CV
• Business plan
• Proof of share capital (as required)
• Proof and source of funds (required to be provided if sought)
• Certificate of incorporation (for corporate shareholders only)
• FSRA Regulatory Approval Documents (for financial service firms)

As we have seen the documents required for the business setup in ADGM, let's look into the detailed step-by-step process for obtaining an ADGM free zone trade license.

Business Activity Selection: You might have already decided on the business activities to be undertaken. If not, check and determine the business activities that your company is going to pursue.

Legal Structure of the Business: The company structures allowed in ADGM include Limited Liability Company (LLC), Special Purpose Vehicle (SPV), Branch of a Foreign or Local Company, and Foundation. Discuss with your business setup agent or partners and finalize the legal company structure, if you haven’t decided on it yet. The branch of a foreign or UAE-based company will be owned by the parent company, and the business activities will be the same as the parent firm.

Trade Name Reservation: ADGM regulations exist, in line with the country’s, for trade names. Abide by the rules and finalise the trade name for the company. Forward the trade name for reservation via the Online Registry operated by the ADGM Free Zone.

Document Preparation: Prepare the documents required for the company formation in ADGM.

Lease Office Space in ADGM: The investor is free to choose a flexi-desk or a physical office in the ADGM free zone. Conclude the lease agreement, Ejari. This is one of the documents required to be submitted along with the ADGM free zone trade license application.

ADGM Trade License Application: The ADGM Free Zone follows a completely digitised licensing process. The license application and documents have to be submitted through the ADGM portal. Pay the company registration/ license fee after submitting the application and documents. The license fee will vary according to the business activities chosen. At the same time, hiring an expert business setup agent will ease the process and will be beneficial to you in many ways. The company registration and license issuance timeframe will differ depending on the type of license, business activities, etc.

ADGM Trade License Issuance: The ADGM will issue the business license and the certificate of registration after the successful review of the application. The license must be renewed annually. Visa process, corporate account opening, and other required formalities can be undertaken after receiving the trade license.

 

The types of companies permitted in ADGM are:

Public Company Limited by Shares: A public company formed by one or more shareholders above the age of 18. It could be an individual shareholder or a corporate entity. The company must appoint at least 02 directors, as per the extant policies.

Private Company Limited by Shares: A private company structure formed by one or more shareholders. Similar to the public company, the shareholder could be an individual or a corporate entity. This type of company must have at least 01 director appointed.

Branch of a Foreign/ UAE Company: The minimum number of shareholders and directors depends on various factors, such as the regulations that exist in the home country (for a foreign company branch). Authorised signatories are required in the UAE for a foreign company branch in the ADGM free zone.

Unlimited Company: An Unlimited Company mandatorily should have one shareholder and one director. It could be an individual or a corporate entity. Unlike the public and private companies, the liability of the shareholders is not restricted to the investment.

Investment Company: An investment company formed by at least one shareholder and one director can grow optimally with the productive environment that ADGM offers. The director should mandatorily be an investment fund manager approved by FSRA or any other financial regulatory body.

These are the basic info you must have to apply for an ADGM free zone trade license. Consulting an experienced business setup service would help you form the company professionally. Errors during the setup can be detrimental to your company. Therefore, it is best to opt for assistance from a business setup consultant.
Kiltons, with more than 26 years of experience, would be the ideal support you need. We provide comprehensive, end-to-end business setup support. Expertise, efficiency, and effectiveness make us the best in the industry.
Contact us now to know more about the ADGM trade license and for business setup in ADGM, any other free zone, or the UAE mainland.