The results of globalization are considered to be flourishing, which internally united all the local markets. But there are several controversies regarding this concept. Some financial advisors have argued that this global process leads to instability and competition hikes in domestic markets. Also, they contend that the reach of international players often leads to disorder in the local industries.
However, minimum trade barriers and government’s participation have been related to the success of an entity. This requisite eventually applies to modern financial organizations. At present, the company formation in ADGM is an accurate model in this prospect. The fiscal free zone became reachable as rare trade restrictions imposed on the UAE-based mainland companies. The adaptation of international corporate governance methods along with global financial standards has effectively worked for this process.
Procedures of Company Formation in ADGM
The Abu Dhabi Global Market (ADGM) offers investors with numerous business solutions and superior location to attract customers from the global community. The multinational companies approach the fiscal free zone intending to establish themselves in the region. And the new investors consider this opportunity to enrich themselves along with the former. The legal structure of this zone allowed investors either to expand or establish their new business. This free zone even offered numerous real-estate services to meet the dynamic and high-end needs of several entities.
In addition, each business needs to fill-up the forms online for company formation in ADGM. Also, it supports paper-based forms but has additional fees for applicants. The main process of company registration includes-
- Registration of Establishments
- Company Name Registration and Its Maintenance
- Post-Incorporation Documentations
- Registration of Changes in Company Name Particulars
- Registration of Changes in Officers, Directors, Share Capital, and Shareholders
- Enforcement of Business Regulations, Commercial Licence Cancellation, Prosecution or Strike Off
- Restoration or Dissolution of Former Establishments
Types of Company Formation in ADGM
The ADGM offers investors to set-up one of the following kinds of entities in the financial free zone-
- Private Companies Limited by Shares
- Partnership Firms (Limited Partnerships, General Partnerships, and Limited Liability Partnerships)
- Public Company Limited by Shares
- Restricted Scope Company
- Private Companies Limited Without Shares
- Private Companies Limited by Guarantee
- Branch of Foreign Entities
If you’re looking for company formation in ADGM, you need to submit the online form along with the following documents-
- Passport Copy with Visa Page or Immigration Entry Stamp
- Proposed Name of Company
- Business Layout
- Statements of Capital and Shareholding (for companies limited by shares)
- Statement of Guarantee (for companies limited by guarantee)
- Trade Name Reservation Document
- Statement of Proposed Officers
- Statement of Intended Address of the Company
- Copy of Proposed Articles of Association
- Registration of Board of Directors
- Copy of Lease Agreement for Office Space
- Confirmation of Restricted Scope Company
- Accurately Filled and Signed Data Protection Form (DP-01)
- Punctually Filled and Signed Beneficial Owner Form (BO-01)
- Other Necessary Document(s) Required by Authorities
However, to run business activities in this free zone, companies have to undergo various strict company formation procedures. Because the financial department will review the application before permitting investors to conduct business successfully.
In short, company formation can be an elaborated process in ADGM, which requires extended documentation and legal agreements. So, it’s recommended to take assistance from law firms tailored legal advice to establish companies in the financial free zone.