As an Al Reem Island business entity undergoing transition, you might encounter various administrative tasks and legal requirements. From updating employment contracts to notifying counterparties, each step plays a crucial role in ensuring a smooth transition and compliance with ADGM regulations. In a recent collaboration, MoHRE and ADGM have signed an MoU to simplify the transfer of work permits and licenses for Al Reem Island-based companies to ADGM.

As the deadline nears, it’s crucial for companies aiming to establish or transition to ADGM to closely follow ADGM guidelines and processes for a smooth transition. Take advantage of fee waivers and incentives available to transitioning companies before the conclusion of the transition period to maximize benefits.

Here are key factors to consider throughout and after the migration process for Al Reem Island firms

Establishment card and employee visa update.

• Businesses can experience automatic linking of the existing visas and IDs to the ADGM-issued license through smart devices or the ICP system and no cancellation is required. 
• If you hold an investor visa, apply for a change of job title once visas are linked to your ADGM entity.
• New employees can obtain new visas through ADGM’s AccessADGM government services portal.
• Residency visas for employees’ dependents will remain valid as is. They can continue to enjoy their residency privileges without any adjustments.

Employment contracts

• Following the ADGM Employment Regulation, prepare a new employment contract, and provide them for employee review, before registering a new entity.
• Proceed to sign them individually. 
• Ensure employees receive their entitled end-of-service payments according to onshore laws, with a possibility to transfer accumulated benefits to the new contract.

Work permits

• The employers will have to apply for work permit services for employees with a valid visa under the newly licensed ADGM entity.
• Employers obtain temporary work permits via AccessADGM for part-time employees with employment visas from other jurisdictions.
• Employers procure full-time non-sponsored employee Work Permits through AccessADGM for UAE/GCC nationals, dependents, or long-term visa holders (Golden/Green)

Bank account transition

• Notify bank managers of upcoming changes to existing accounts (should be completed before the registration of a new entity)
• Provide all necessary documentation (constituent documents, commercial license) confirming migration to ADGM, including corporate documents issued by ADGM.
• Updation of account names if necessary (Additional rules may apply based on individual bank policies).

Lease agreement

• Update your lease agreements to reflect new company details and comply with ADGM Real Estate Regulations by December 31, 2024. Ensure registrations are done according to ADGM rules. 

Power of Attorney

• Prior to registering a new entity, it is essential to prepare new Powers of Attorney (PoAs) with updated company details and issue them as required.
• Update PoAs with counterparties and authorities, where necessary.

Compliance alert for Onshore entities

• If your entity interacts with onshore or foreign authorities, holds licenses/permits, or registrations, or is involved in legal proceedings, notify the relevant authority or court promptly about any changes in name, legal form, or other relevant details.
• Some authorities may urge the need for licenses to be reissued due to these alterations, so it’s crucial to be aware of any further steps or formalities that might be required.

Notices for counterparties

It is important to notify the counterparties to ensure transparency, compliance, and smooth continuation of business operations.

• Alert the counterparties like suppliers, customers, banks, and service providers about upcoming changes.
• Update commercial contracts to reflect changes in company details, bank accounts, signatories, and addresses as needed.

MS in Al Reem Island

MS offers comprehensive advisory services tailored for new businesses acquiring licenses on Al Reem Island in ADGM, while also providing seamless transition services for existing businesses leveraging our Mainland and Free zone license. MS can be your advice partner during this transition, With MS by your side, navigating the transition for Al Reem Island businesses to ADGM becomes simpler and more manageable.

Disclaimer :

Registered in Abu Dhabi Global Market (Registered No. 000007218),
We are not an ADGM Registered Corporate Service Provider.