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DIFC and ADGM company setup
The UAE's two common-law financial centres, for holding structures, foundations, family offices and funds. We tell you plainly whether one of them fits, and which.
- English-language common law and their own courts
- ADGM SPV from USD 1,900 in government fees
- Honest advice if a standard licence suits you better
DIFC or ADGM?
What do you need?
Two routes for holding shares or assets. An ADGM SPV is passive: it cannot trade or hire staff.
- DIFC Innovation Holding Structure
- USD 1,100 in year one
- ADGM SPV
- USD 1,900 to establish
Government fees only. Service-provider, registered office, attestation and professional fees are extra, and fees can change.
What DIFC and ADGM are for.
DIFC in Dubai and ADGM in Abu Dhabi are common-law financial freezones with their own laws, courts, registrars and regulators. They are used for holding structures, foundations, family offices, funds and joint ventures that need a neutral legal forum.
They are not a low-cost alternative to an ordinary Freezone and are the wrong choice for a trading company or consultancy. My Eloah Business Hub advises on fit and prepares the application.
- DIFC
- Dubai; regulator DFSA; DIFC Courts
- ADGM
- Abu Dhabi; regulator FSRA; ADGM Courts
- Used for
- Holding, SPVs, foundations, family offices, funds
- Fees
- Quoted in US dollars
DIFC and ADGM, side by side.
The practical differences between the two centres.
| DIFC | ADGM | |
|---|---|---|
| Emirate | Dubai | Abu Dhabi |
| Financial regulator | DFSA | FSRA |
| Registrar | Registrar of Companies | Registration Authority |
| Courts | DIFC Courts | ADGM Courts |
| Legal basis | DIFC's own laws | English common law applied directly |
| Low-cost holding vehicle | Innovation Holding Structure Licence, USD 1,100 in year one | SPV, USD 1,900 |
| Distinctive | DIFC Wills Service | Foundation at USD 1,000 plus USD 200 a year |
What the centres charge.
Published government fees for the structures we set up most often.
| Structure | Government fee | Notes |
|---|---|---|
| ADGM SPV | USD 1,900 | Name reservation USD 200, registration USD 700, commercial licence USD 1,000 |
| ADGM Foundation | USD 1,000 | Annual renewal USD 200 |
| DIFC Innovation Holding Structure Licence | USD 1,100 in year one | USD 1,000 annual plus USD 100 one-off registration |
| DIFC AI and Web 3.0 Licence | USD 1,600 in year one | USD 1,500 annual plus USD 100 one-off registration |
Government fees only. A licensed Company Service Provider is required for most ADGM structures and its fee is separate, as are registered office, document attestation (AED 2,000 per commercial document) and professional fees. Other DIFC licences are quoted from the current DIFC fee schedule.
Four things people get wrong.
Clear up these points first and the choice becomes simple.
They are premium
Expect to pay materially more than an ordinary Freezone once every fee is counted.
0% is not automatic
The same qualifying test applies as in any other Freezone.
An SPV is passive
It holds assets. It cannot trade or employ staff.
No extra Mainland access
You can trade with the Mainland no more freely than from an ordinary Freezone.
Six steps to an ADGM structure.
ADGM registration is fully digital. DIFC uses one application for both registration and the commercial licence.
Talk to us first →Confirm the vehicle fits
We check the structure suits your purpose and meets the nexus requirement.
Appoint a service provider
A licensed Company Service Provider is appointed and provides the registered office.
Reserve the name
The name is reserved with the Registration Authority.
File the application
With the business plan, resolution and articles. Foreign corporate documents need attestation.
Commercial licence issued
The Registration Authority issues the licence.
Renew each year
The licence is renewed annually.
DIFC and ADGM, answered.
Ask anything else on WhatsApp and we will answer for your company.
What are DIFC and ADGM?
Dubai International Financial Centre and Abu Dhabi Global Market are the UAE's two common-law financial freezones. Each has its own laws, courts, registrar and financial regulator.
Are DIFC and ADGM a cheap way to set up?
No. They are premium jurisdictions and cost materially more than ordinary Freezones once service-provider, office and professional fees are added.
Do I automatically get 0% corporate tax?
No. The same Qualifying Freezone Person test applies as in any other Freezone.
Can an ADGM SPV trade or hire staff?
No. An SPV is a passive holding company used to ring-fence assets and liabilities.
Do I need a Company Service Provider in ADGM?
Yes, for non-exempt SPVs and foundations. The service provider also supplies the registered office, and its fee is separate from the government fee.
What is the ADGM nexus requirement?
Every ADGM SPV must show an appropriate connection to ADGM, the UAE or the wider GCC, or it will not be registered.
Which is better for a foundation?
ADGM is very competitive, at USD 1,000 to apply and USD 200 a year to renew, plus the service provider's fee.
Can you get me a financial services licence?
Authorisation by the DFSA or FSRA is a separate specialist process. We refer that work to a specialist.
Tell us what you want to hold. We tell you what fits.
We reply with the right centre and structure, or a simpler option if one suits you better.