ADGM Free Zone Activity List

ADGM approves both regulated and non-regulated businesses. Non-regulated businesses can operate with the approval of the Registration Authority (RA). The Financial Services Regulatory Authority (FSRA) plays a key role for regulated businesses.

• Registration Authority (RA): The RA is the monitoring and regulating body for all the corporate entities in this free zone. The RA handles company incorporation, registration processes, approvals, and licensing of all the non-regulated businesses, such as trading firms, retail stores, corporate holding structures, and other non-financial services.
• Financial Services Regulatory Authority (FSRA): FSRA is the financial regulator for all the financial entities in the ADGM. It operates independently and controls financial services, asset management firms, capital markets, banking services, and digital asset-based business operations.

Determining the business activity will, in turn, confirm the authority that will approve the business setup. The capital needed, compliance requirements, timeframe for the company formation, and additional approvals necessary will depend on the governing authority.

With more than two and a half decades of experience, Kiltons has made its mark by assisting successful business setups in the free zone. Talk to us if you need further guidance on the business activities or the approval process.

ADGM has established a well-structured framework that clearly distinguishes between regulated financial services and non-regulated commercial business activities. Accordingly, there are four categories of business activities: Category A, Category B, Category C, and Special Structure.

• Category A: FSRA-regulated financial businesses fall under Category A.

o Banking and Credit Services

o Capital Markets

o Tokenized Assets

o Wealth and Asset Management

o Fund Management

• Category B: Non-financial commercial activities and retail businesses are included under Category B.

o Retail Trading

o Tech Firms and Tech Startups

o R&D Companies

o Professional Corporate Services

o Family Offices and Corporate Holdings

• Category C: This category is for consumer brands, hospitality ventures, and merchants.

o Food and Beverage

o Luxury Boutique

ADGM also has a fourth category, Special Structure for Special Purpose Vehicles (SPVs).

Category A comprises regulated financial services. These must obtain approval from the FSRA for commencing business operations. The firms are subjected to constant prudential monitoring, as the permissions are capital-intensive. Business operations under regulated financial services include:

• Asset and Fund Management Activities: Managing investments, institutional wealth portfolios, and private equity.
• Banking Services: Banking services such as deposit management, corporate finance structuring, and credits.
• Share Broking: Financial exchange operations, brokerage firms for investments, and clearinghouse transactions.
• Digital Assets and Cryptocurrency: MTF (Multilateral Trading Facility) for digital assets, crypto asset management and advisory services, and provision of custody services.

Non-regulated, non-financial business activities are listed under Category B. All the commercial activities that do not directly handle third-party capital transactions are included in this category.

• Technical Entities Including Tech Startups: Cloud services, software development, AI, digital services, and cloud infrastructure.
• Consultation and Management Services: Management consultancy, legal services, tax consultation agency, human resource services, and audit and accounting services.
• Hospitality Industry: Luxury boutiques, F&B outlets, and service providers within the jurisdiction.
• Procurement and Supply Chains: Administrative headquarters and offices providing local and global procurement and supply services.

SPVs have been one of the most popular business structures in the ADGM. Separate legal entities that help alleviate financial and legal risks; entrepreneurs commonly opt for this entity type.

SPVs do not require a physical office; rather, the address of a registered company service provider can be used. With so many ADGM company service providers, SPV is a cost-effective option.

The table below will help you understand the various features of the business categories in ADGM. It has been prepared specifically to help entrepreneurs looking to establish a firm in this free zone. However, do reach out to Kiltons if you need further insights.

ADGM authority has implemented a streamlined company incorporation process. The standardized procedure involves business activity selection, company structure finalization, initial approval, trade name registration, office space leasing, and licensing.

• Business Activity Selection: Browse the ADGM-approved business activity list and determine your business activity. Avoid mixing regulated and non-regulated business activities. Obtain the necessary approvals in case you are choosing both regulated and non-regulated business activities simultaneously.
• Company Structure: Limited Liability Company (LLC), Branch of a Foreign/Local Company, and SPVs are the approved company structures. Choose yours.
• Lease the Office Space: A private office or a co-working space is mandatory for an ADGM company, excluding SPVs. Conclude the lease agreement and register Ejari.
• Initial Approval and Trade Name Registration: Submit the business plan, Ultimate Business Owner (UBO) declaration and documents, and corporate structure data. Obtain initial approval for the company formation. Register the trade name for the entity. Ensure that the proposed trade names adhere to the naming regulations to avoid rejection.
• Obtain Trade License: Apply for the license, submit the documents, and pay the license fee. Obtain the trade license to operate in the ADGM.
• Visa and Corporate Account: Obtain visas for the investors and employees. Open a corporate bank account for the business.

ADGM offers a growing commercial environment and a supportive ecosystem. The free zone framework provides global scalability and exceptional operational advantages.

The key benefits offered include:

• English Common Law: ADGM has independent courts that function under the English Common Law. Commercial disputes, contractual obligations, and regulatory enforcement are transparent and predictable under this judicial framework. Thus, creating a positive business environment.
• Repatriation of Capital and Profits: 100% foreign ownership, as well as full repatriation of capital and profits, is another strategic advantage for investors. ADGM neither restricts the movement of finance nor controls foreign exchange.
• Dual License Opportunity: An ADGM company can obtain a secondary license to operate in the Abu Dhabi Mainland. Apply for the license from the Abu Dhabi Department of Economic Development (ADDED) and explore potential Abu Dhabi markets.

ADGM authority constantly monitors the global business spectrum. Novel industries and business concepts are identified and included in the business registry. Emerging business fields such as tokenised Real-World Assets (RWA), AI Ventures, and Advanced Web3 concepts are accommodated accordingly.

Align your business objectives in line with the officially approved business activities. To ensure a smooth and effortless business incorporation.

Company incorporation can be more efficient if you understand the core regulations governing the ADGM business environment. ADGM-approved business activities are increasing with the rapid transformation happening around the globe. Get a trusted consultant such as Kiltons for cost-effective company formation.
Kiltons Business Setup Services has been the trusted partner for investors since 1999. With over two and a half decades of experience, we help entrepreneurs confidently establish their presence in ADGM.
Contact us today for a free consultation on your ADGM business setup.