Tag: Al Reem

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CT for ADGM Free Zone: What’s new in Corporate Tax for Al Reem Island Businesses

CT for ADGM Free Zone: What’s new in Corporate Tax for Al Reem Island Businesses
CT for ADGM Free Zone: What’s new in Corporate Tax for Al Reem Island Businesses

The Abu Dhabi Global Market (ADGM) is making headlines again with a significant fee reduction for non-financial and retail licenses. Starting January 1st, 2025, businesses can expect cuts of 50% or more! This strategic move aims to streamline the transition of Al Reem Island businesses after its incorporation into the ADGM free zone last year. By revising costs, ADGM hopes to attract a wider range of companies to the region.

The transition of Al Reem island businesses from a mainland to a free zone like ADGM with world-class infrastructure and unparalleled global connectivity offers a lot of advantages. One among these is the corporate tax benefits. Previously under mainland regulations, Al Reem Island businesses couldn’t access the tax benefits of a free zone. Now, with their inclusion in ADGM, everything changes. As a free zone, ADGM boasts a 0% Corporate Tax rate for qualifying activities. This translates to significant tax savings for businesses operating within ADGM, known as Qualifying Free Zone Persons (QFZPs).

The tax advantages extend to:

  • Transactions between QFZPs and other Free Zone Persons (where the other party benefits).
  • Certain activities conducted within the designated free zone areas (including designated distribution zones).

Corporate Tax for Al Reem Island Businesses: Key Requirements

  • Physical Presence: To qualify for ADGM FZ benefits in Al Reem Island, companies must demonstrate a substantive operational footprint. This necessitates maintaining a physical office with dedicated employees, operational equipment, and sufficient expenditure to support your core business activities. While outsourcing is permitted, it must be confined within the Free Zone (Al Reem and Al Maryah Island combined) and conducted with proper oversight to ensure effective control over the outsourced tasks.
  • Qualifying Income Sources: To qualify for the 0% tax rate, the Al Reem Island business must generate income from approved sources:
    • Free Zone Transactions: The majority of your income should stem from transactions conducted entirely within the Free Zone (Al Reem and Al Maryah Island combined). However, these transactions must be out of a specific list of excluded activities, and the company must be the demonstrably true beneficiary of the transactions.
    • Approved Activities & Intellectual Property: Ensure the primary business activities align with the list of government-approved endeavors within the Free Zone (Al Reem and Al Maryah Island combined). Additionally, ownership or utilization of intellectual property that meets the designated criteria can contribute to your eligibility for the 0% tax benefit.
    • De Minimis Rule: The UAE acknowledges that establishing a new business may involve some non-qualifying activities initially. The de minimis rule allows Al Reem Island FZ companies to maintain a limited amount of non-qualifying income (the lower of AED 5 million or 5% of total revenue) without jeopardizing the 0% tax advantage.

Excluded Income Sources for Al Reem Island Businesses:

Certain income sources strictly disqualify an Al Reem Island business from the 0% tax rate. These include:

  • Income generated from outside the Free Zone geographical boundaries.
  • Revenue derived from unrelated property holdings.
  • Income from intellectual property that does not satisfy the qualifying criteria.

Corporate Tax for Al Reem Island Businesses: Compliance and Considerations

  • Standard Corporate Tax vs. Free Zone Benefits: Opting for the standard corporate tax regime automatically disqualifies the Al Reem Island business from the 0% Free Zone tax rate. Reverting back to the Free Zone benefits after this switch comes with a significant waiting period of four years.
  • Arm’s Length Principle: The UAE upholds fair market practices. Transactions between your Al Reem Island FZ company and affiliated businesses should be conducted at arm’s length, reflecting a fair market value for the goods or services exchanged. Documentation demonstrating adherence to this principle is crucial if you have significant transactions with related parties.
  • Financial Recordkeeping: Regardless of your income level, maintaining audited financial statements is a mandatory requirement for retaining your Al Reem Island FZ corporate tax benefits.

By adhering to these essential guidelines, Al Reem Island businesses can unlock the significant advantage of a 0% corporate tax rate and flourish within the ADGM’s dynamic and competitive Free Zone environment.

How can MS help you with Corporate Tax Registration?

MS helps businesses by simplifying the UAE Corporate Tax filing process, ensuring precision and effectiveness. Our team will expertly guide you through every step, from registration to submission. Starting with a comprehensive analysis of your company’s financial position, we’ll accurately assess your taxable income, considering relevant exemptions and deductions. With our support, you can save time and resources, confident that your corporate tax obligations are managed by knowledgeable professionals.

If your existing Al Reem Island business is confused regarding the free zone status after the transition to ADGM, await for our upcoming articles as we break down this for you.

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One year of ADGM’s Al Reem Island expansion – a snapshot

One year of ADGM’s Al Reem Island expansion – a snapshot
One year of ADGM’s Al Reem Island expansion – a snapshot

A year ago, the UAE government expanded ADGM to include Al Reem Island, making it one of the world’s largest financial hubs. Under the UAE Cabinet Resolution No. 41 of 2023 issued on April 24, 2023, this bold initiative saw the integration of Al Reem Island alongside its original location on Al Maryah Island, signifying a major milestone in ADGM’s growth since its establishment merely eight years ago.

ADGM’s Al Reem Island Expansion and Growing Demand

Due to high demand, occupancy rates on Al Maryah Island in ADGM surpassed 95%, leading to the incorporation of Al Reem Island to accommodate more companies flocking to Abu Dhabi’s lively financial hub. This expansion has filled ADGM’s ecosystem with rich amenities that solidified its position as a preferred destination for corporates, professionals, and global talents from across the world.

Transition Initiation

ADGM closely collaborated with government stakeholders and local authorities including the Abu Dhabi Department of Economic Development (ADDED), Central Bank of UAE (CBUAE), Abu Dhabi City Municipality (ADM), Ministry of Human Resources and Emiratisation (MoHRE) and Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) to ensure a seamless transition.

To facilitate a smooth transition, ADGM authorities have implemented flexible measures and license processing guidelines to support Al Reem Island Businesses.

Current Phase

Since November 1, 2023, all new businesses on Al Reem Island are required to get a commercial license from ADGM instead of Abu Dhabi Department of Economic Development (ADDED). Thus, all the new businesses are obliged to adhere to ADGM’s laws and regulations.

Existing businesses on the Island can continue with their ADDED license until December 31, 2024. After that, they must comply with ADGM’s licensing requirements as the ADDED license will become invalid from January 1st, 2025.

Transition Incentives

During this transition period, companies including the non-financial and retail sector can benefit from significant fee waivers and incentives based on the completion of the transition process.

Al Reem businesses, spanning healthcare, hospitality, retail, construction, real estate, professional services, etc. (excluding financial services) can obtain an ADGM license without any registration fee until October 31, 2024. They need to ensure that their license lists an Al Reem address and is free of outstanding fines.

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Al Reem Island Businesses: Assess your Business Activity and Category for ADGM License Advancement

Al Reem Island Businesses: Assess your Business Activity and Category for ADGM License Advancement
Al Reem Island Businesses: Assess your Business Activity and Category for ADGM License Advancement

Establishing and operating a business in Al Reem Island involves navigating through various categories and licensing requirements. As the transition to ADGM is ongoing, knowing your business category and the pre-application steps is crucial. Simplifying this process ensures compliance and sets the stage for smooth growth and success in the vibrant Al Reem Island business scene. Plus, it paves the way for an easy license conversion process before the deadline, ensuring a seamless transition to ADGM.

The Activities are classified into 3 categories by the ADGM authorities:

  • FINANCIAL – CATEGORY A
  • NON-FINANCIAL – CATEGORY B
  • RETAIL – CATEGORY C

i)Category A: Financial Businesses

Financial businesses fall under Category A and are required to obtain an Investment Promotion Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM before proceeding with the commercial license registration. The FSRA oversees financial activities and ensures compliance with regulatory standards. For more information and contact details, applicants can refer to the FSRA’s official resources and rulebook.

ii)Category B: Non-Financial Businesses

Non-financial businesses, categorized under Category B, contain a range of activities subject to additional regulations and license conditions, particularly Controlled Activities. One sub-category within this group is the Designated Non-Financial Businesses and Professions (DNFBPs), which includes:

  1. Real estate agencies
  2. Dealers in precious metals or stones
  3. High-value item dealers
  4. Accounting, audit, insolvency, or taxation consulting firms
  5. Law firms, Notary firms
  6. Company Service Providers (CSPs)

Each sub-category from (a to f) has specific requirements and may require the appointment of a Money Laundering Reporting Officer (MLRO) and adherence to Anti-Money Laundering (AML) rules.

Additional Criteria for DNFBPs Under Sub-Categories (d to f)

  • Audit firms:

They need to comply with the ADGM audit regime.

  • Law firms:
  1. Be a registered company or a branch/subsidiary of an existing legal entity.
  2. Operate for at least 8 years.
  3. Maintain at least two offices, either in different jurisdictions or within the same country.
  4. Each managing partner must have a minimum of 10 years of post-qualification experience.
  5. Employ at least 8 partners and 25 qualified legal professionals.
  6. Possess professional indemnity insurance covering activities in Al Reem Island upon registration.
  • CSPs:

Although currently under moratorium until June 30, 2024, CSPs facilitate business incorporation and serve as the main contact for ADGM. Eligible entities may explore the dual licensing regime, enabling them to operate in mainland Abu Dhabi without physical office presence, subject to regulatory requirements.

iii)Category C: Retail Businesses

Retail businesses fall under Category C and operate in the retail sector. These businesses may need to adhere to general commercial licensing regulations and any specific requirements for retail operations in Al Reem Island.

Dual Licensing

Additionally, Al Reem Island businesses have the opportunity for dual licensing, allowing eligible entities holding ADGM commercial licenses to operate in mainland Abu Dhabi without needing a physical presence on the mainland. This arrangement aims to promote business activity between ADGM and mainland Abu Dhabi, enhancing competitiveness in the region.

However, it’s essential to ensure compliance with both ADGM regulations and those imposed by mainland authorities, such as the UAE Central Bank or Securities and Commodities Authority. Depending on your business activities, you may need further licenses from onshore authorities.

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 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms

 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms
 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms

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.

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Al Reem Island Businesses: Obtain your ADGM Licenses in Easy steps

Al Reem Island Businesses: Obtain you ADGM Licenses in Easy steps
Al Reem Island Businesses: Obtain you ADGM Licenses in Easy steps

For aspiring startups and established firms in Al Reem Island, ADGM offers an exceptional platform for your growth. Now it’s the time to acquire the ADGM license and step into the robust ecosystem to unlock your full potential and achieve sustainable success. As the deadline for transition is fast approaching, all the existing businesses on Al Reem Island, ensure you obtain your necessary licenses before 31st December 2024. It’s important to note that the present DED license becomes invalid after the deadline.

Highlights to date

Abu Dhabi’s ascent as a premier financial hub gains momentum with the expansion of Al Reem Island businesses to ADGM. Existing businesses on Al Reem Island have until December 31, 2024, to undergo transition, with the existing licenses becoming invalid from January 1, 2025. During this period of transition, businesses can operate as usual, exempt from ADGM regulations. Starting November 1, 2023, new businesses aiming to establish on Al Reem Island must apply for licenses through ADGM, further enhancing Abu Dhabi’s economic vision and establishing ADGM as a global financial hub.

Simplify transition: step-by-step guide

The companies undergoing transition get the benefits of fee waivers and incentives. Managing the transition process can be daunting, but here are simplified steps to guide you through completion seamlessly.

Al Reem Island Businesses: Obtain your ADGM Licenses in Easy steps

Businesses aiming for the new setup 

  1. Choosing the perfect business name – Choose a compelling business name that aligns with ADGM’s regulations and submit it for validation to ensure compliance. 
  2. Lease agreement finalization – Finalize with the ADGM authority for a lease agreement that favors your retail setup.
  3. Document preparation – Necessary documents include financial statements, legal paperwork, and trade licenses meeting the ADGM requirements. 
  4. Submission of documents – Submit the documents to the ADGM authority for approval 
  5. Issuance of license – Be patient and wait for the issuance of the retail licenses from ADGM upon approval of the submitted documents.
  6. Registration with DMT– Register the lease agreement with the Department of Municipalities and Transport (DMT) and ensure it complies with municipal regulations.
  7. Ongoing compliance – Follow the ADGM’s compliance rules and complete the annual obligations on time.

Businesses opting for continuance to ADGM

  1. No Objection Certificate (NOC) – Obtain an NOC from the Department of Economic Development. 
  2. You must adhere to the ADGM guidelines to ensure the validity of the existing lease agreement.
  3. You must Prepare and submit necessary documents, including financial statements, legal paperwork, and trade licenses meeting ADGM standards, to ADGM authority for approval, leading to the issuance of your license.
  4. Finalized leases must be registered with the Department of Municipalities and Transport (DMT) for official validation.
  5. You need to ensure that your business operations and practices comply with the regulations and requirements set forth by the International Compliance Professionals (ICP), the Ministry of Human Resources and Emiratisation (MOHRE), and the Abu Dhabi Global Market (ADGM).

Navigate your process with the Guidance of MS

MS provides comprehensive advisory services for new businesses obtaining licenses on Al Reem Island in ADGM. If you decide not to switch to an ADGM-free zone license or encounter other difficulties, our team will guide you through the application process. We offer all-inclusive services like compliance, tax advice, finance management, and technology optimization for holistic business success. Prepare for an entrepreneurial and corporate voyage with MS as ADGM emerges on Al Reem Island, presenting a captivating blend of opportunity and innovation!

Disclaimer :

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

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Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!

Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!
Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!

The expansion of Al Reem Island to ADGM’s jurisdiction marks a groundbreaking moment in Abu Dhabi’s path to financial leadership. With Al Reem joining Al Maryah Island as a financial-free zone, the expansion aims to offer tax-friendly jurisdiction, attracting international companies with eligible income to establish their presence in Abu Dhabi’s expanding financial landscape. The expansion was confirmed in line with the UAE Cabinet Resolution No. 41 of 2023 on April 24, 2023, reinforcing Abu Dhabi’s economic vision, positioning ADGM as the global financial hub. 

Unlocking Opportunities: Advantages of Establishing Your Business in ADGM

Whether you are a startup looking to flourish in Al Reem Island or an established corporation seeking new opportunities, ADGM offers you the ideal environment to unlock your full potential and achieve sustainable growth. Businesses in ADGM leverage distinct advantages in the direct application of English common law, fostering legal certainty. With an array of in-house services, companies streamline operations. Digital registration simplifies setup processes, and activating the e-records, e-contracts, and e-signatures enhances working efficiency. Access to the ADGM ecosystem provides better networking opportunities and synergies, improving growth and sustainability.

Al Reem businesses: Prepare for Your 100% Fee Waiver!

The business operating at Al Reem should be conscious of the timeline and deadlines required to access ADGM’s incentives. As of now, 31st December 2024 marks the final date of the transition period for the existing Al Reem Island businesses. After the designated timeline, the existing license becomes invalid in Al Reem by 1st January 2025. Obtain the ADGM license before the deadline and consider the key dates and ADGM regulations for a smooth transition process.

The transition period marks its final expedition on 31st December 2024. Companies undergoing transition can benefit from fee waivers and incentives based on the completion of the transition process. Al Reem businesses including, healthcare, hospitality, retail, construction, real estate, professional service businesses, etc. (excluding financial services) can secure an ADGM license without any registration fee until October 31, 2024. Simply ensure your license lists an Al Reem address and has no outstanding fines.

Business Future with ADGM

MS Group offers comprehensive advisory services for new businesses seeking licenses to operate within the ADGM jurisdiction on Al Reem Island. It’s not just a jurisdictional expansion—it’s a strategic leap toward establishing ADGM as the ultimate destination for businesses worldwide. With MS Group by your side, brace yourself for a business adventure in ADGM, where opportunity and innovation converge to propel your business toward success. 

Disclaimer :

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

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ADGM Transition: The Sooner, the Better – Here’s Why

ADGM Transition: The Sooner, the Better - Here's Why
ADGM Transition: The Sooner, the Better - Here's Why

For entrepreneurs eyeing promising business opportunities in the UAE, selecting the right location is crucial for success. While each emirate holds potential, Abu Dhabi stands out as the optimal choice for driving business expansion. At the heart of Abu Dhabi’s business excellence is the Abu Dhabi Global Market (ADGM), playing a pivotal role in fostering the growth of the financial services industry.
The ADGM’s influence is now expanding as part of the UAE’s ambitious economic diversification strategy. In line with a recent Cabinet resolution, Reem Island is set to join its jurisdiction as a financial-free zone, alongside Al Maryah Island. This move increases the combined geographic area of the district to approximately 1,438 hectares, marking a significant tenfold expansion. This strategic initiative reinforces Abu Dhabi’s commitment to growing its financial sector and presents a compelling opportunity for entrepreneurs seeking a thriving business landscape.

Milestone Achieved: ADGM Extends Reach to Al Reem Island

On April 24, 2023, Abu Dhabi Global Market (ADGM), the powerhouse International Financial Centre of Abu Dhabi, achieved a breakthrough by extending its reach to Al Reem Island. This groundbreaking move, as dictated by the UAE Cabinet Resolution No. 41 of 2023, perfectly dovetails with Abu Dhabi’s ambitious economic vision and diversification strategy, firmly establishing ADGM as a bona fide global financial hotspot. Now, the existing business in Al Reem must obtain an ADGM license and the businesses that are planning to establish must submit their license applications to ADGM.

Navigating the Transition: Key Dates and Considerations

For existing businesses on Al Reem Island, a transition period has been established until the 31st of December 2024. During this time, businesses can continue operations as usual, exempt from ADGM’s regulations. However, they are encouraged to obtain an ADGM license before the deadline. Existing Al Reem Island businesses can choose to renew their Abu Dhabi Department of Economic Development (ADDED) license or apply for an ADGM license or permit. Starting from the 1st of November 2023, businesses planning to establish a new presence on Al Reem Island must submit their license applications to ADGM. The online registry provides a streamlined process for submitting applications. The expansion of ADGM’s jurisdiction brings forth new opportunities for businesses, with benefits including the direct application of English common law and a business-friendly environment. Note that, there are attractive incentives for the business which complete the process sooner.

A Financial Adventure Unfolds on Al Reem Island with MS

ADGM, with its unparalleled application of English common law, a vibrant and diverse talent pool, and a flourishing community vibe, emerges as the ultimate magnet for international businesses. It’s not just a jurisdiction expansion; it’s a strategic leap toward turning ADGM into the go-to destination for businesses worldwide. The allure of a dynamic financial landscape, coupled with the unique blend of legal prowess and cultural richness, makes ADGM an irresistible hub for those looking to thrive in the global marketplace.

Disclaimer :

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

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ADGM’s New Horizons:

Expanding to Al Reem and Paving the Way as a Leading Financial District!

Expanding to Al Reem and Paving the Way as a Leading Financial District!

An important milestone for Abu Dhabi and ADGM was reached on May 8th, as the International Financial District grew to incorporate both Al Maryah and Al Reem islands, with a total area of 1,438 hectares. This expansion made it one of the biggest financial districts in the world.
Expanding to Al Reem and Paving the Way as a Leading Financial District!

Picture credits to ADGM.

The fastest-growing IFC in the area is ADGM, and this growth results from greater demand from local and international businesses who have chosen Abu Dhabi as their preferred place to live and work.
Businesses in the financial district will profit from being subject to the English common law of the financial freezone, having the chance to recruit top personnel, and having more accessible access to investment and business possibilities by being a part of the dynamic community of ADGM.
ADGM will keep assisting the community and improving its offerings, and we’re excited to celebrate the various establishments, amenities, and facilities for the high quality of life that the two islands have to offer.
Welcome to ADGM, Al Reem Island companies, retailers, institutions, and people.

Thinking of Setting Up Your Business in ADGM?

Are you considering setting up your business in ADGM’s rapidly expanding financial district? Let MS, guide you through the complex process of business incorporation in ADGM.
With our extensive experience in the industry, we can provide you with expert guidance and support tailored to meet your specific needs and goals. We’ll advise you on company structure and governance, ensure compliance with local regulations and laws, and help you set up for long-term success in ADGM’s thriving business ecosystem.
Beyond incorporation, we offer a range of essential business services, including accounting, taxation, and corporate finance. Our deep expertise and knowledge of the local market will help you make informed decisions and achieve your business objectives more efficiently and effectively.

WHY MS

  1. We are an Energetic, Passionate, and curious mix of technologists, Lawyers, Problem Solvers, and Business builders with diverse expertise and background.
  2. We believe our success comes from giving our clients the support to become the best they can be.
  3. We value our clients and are committed to adding value to all our engagements without compromise.
  4. We strive to find solutions to the challenges as we are known to have mastered the“magic of getting things done.”
  5. We are responsive and believe in maintaining an open line of communication with our clients.

Unclear about ADGM-Al Reem expansion?
Check out our FAQ here.

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Frequently Asked Questions – ADGM Expansion

Check out our FAQ here.

1. What is ADGM?

ADGM is an international financial centre, in the form of a Financial Free Zone established in the Emirate of Abu Dhabi, able to develop its own laws and regulations based on the application of English common law: there are some exceptions, however, where the laws of the UAE are applicable in ADGM, most notably the criminal law. You can find out more about ADGM by visiting the website www.adgm.com.

2. What does ADGM jurisdiction expansion mean?

Al Reem Island was governed by UAE federal and Abu Dhabi local laws. From the 24 April 202 when Cabinet Resolution No. (4) of 202 was issued expanding the jurisdiction of ADGM to Al Reem Island, ADGM’s legal and regulatory frameworks have been in force for Al Reem Island. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to ensure that there is a smooth transition to allow all establishments and real estate on Al Reem Island to meet the relevant requirements of ADGM’s legal and regulatory framework during or by the end of the transitional arrangements. It should be noted that federal criminal law will continue to apply to Al Reem Island.

3. When will this be effective?

ADGM’s legal framework became effective for Al Reem Island on 24 April 2023 when Cabinet Resolution No. (4) of 2023 was issued. ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalize the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in the financial services industry. The relevant ADGM authority will contact the Al Reem island community with more details on the transition process in due course.

4. How does it impact you?

Although the change to ADGM’s geographical jurisdiction took effect on 24 April 2023, in the interim, establishments and real estate on Al Reem Island can continue to operate and carry on business as before. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalize the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in financial services.

During the transitional arrangements, establishments operating in Al Reem Island should consider whether they wish to apply for the appropriate license, registration, and authorization to remain on Al Reem Island within ADGM jurisdiction or make arrangements to relocate outside of ADGM to continue being governed by the UAE federal and Abu Dhabi local legal and regulatory frameworks, that they were subject to prior to the expansion.

5. What will happen to your applications currently being processed by a federal or a local authority?

Processing of all applications will continue without change until further notice.

6. You have just renewed your residential tenancy with your landlord and registered Tawtheeq in Al Reem Island. What happens to you?

Processing and registration of all residential tenancies including the processing of other services related to real estate will continue without change and with the relevant government authority until further notice.
Your current DED license is expiring soon.

7. What are your options?

Renew it with the Department of Economic Development Abu Dhabi until further notice.

8. What happens to your current employment visa?

Your visa will remain valid as usual until further notice.

9. Are you looking to obtain building permits, infrastructure services, planning services, or any other municipality-related services?

Reach out to the Department of Municipality Abu Dhabi for all such services until further notice.


10. You are already an ADGM establishment based on Al Maryah Island?

It is business as usual for all existing ADGM establishments.