The result of globalization and removal of trade barriers is acknowledged as an economic worth. It has to target worldwide markets to become united under the same roof. However, there’s a controversial idea to this rising thought.
According to the economic experts, this global process has paved the route for imbalance and competition prevailing in the domestic markets. Some even assumed international players’ entry often leading to disorder in the domestic sectors and industries. Also, minimum trade restrictions and government interference have been increasingly leading to success. Even the rising need equally implies modern financial institutions.
If you’re looking for Company Formation in ADGM, you should choose financial free zones to set-up your company. The Abu Dhabi Global Market (ADGM) is considered to be an exact business hub today! The financial free zone became popular in the region because of minimal trade restrictions prevailing on mainland companies in the UAE. Also, enforcement of international corporate governance rules, along with global financial standards have been regarded as advantageous.
The first contact point for all investors is the registration authority, who’s looking to set-up business in ADGM. This point of contact will support organizations throughout the process of company registration, formation, commercial license, visas, among other services.
Procedure of Company Formation
This global market offers dynamic business opportunities and a top-notch location to facilitate investors from the global financial community. Also, multinational companies are approaching financial free zones with the aim to succeed in Company Formation in ADGM. However, new investors regarded this as ‘golden’ chances to establish and compete with old investors.
The legal structure of the financial free zone influences investors who want to establish or expand their business. This free zone even offers numerous real-estate solutions to meet the dynamic needs of entities developed in this region. This free zone also facilitates custom-made office spaces and retail outlet options to investors.
Type of Entity
The investors have the option to set-up one of the following types of entities in the financial free zone-
1. Public Company Limited by Shares
A public limited company should have at least two directors (minimum one legal entity), and one secretary is mandatory.
2. Private Company Limited by Shares
A private limited company should have at least two directors, but the secretary isn’t mandatory. In addition to shares, the legal entity can be limited by guarantee, unlimited with shares, protected Cell Company, unlimited without shares, restricted scope, and incorporated Cell Company.
3. Restricted Scope Company
A restricted company should include the word ‘restricted’ in its name and must end with “limited”, “Ltd”, or “LIMITED”.
4. Partnership Company
A partnership company will completely follow the partnership model of company formation rules and regulations.
In addition to online or paper-based form fill-up, investors have to abide by the following company registration process as follows-
Registration of Company
Registration of Company Name & its Maintenance
Post-Incorporation Documentations
Registration of Changes in Company Name Particulars – Directors, Officers, Share Capital, and Shareholders
Enforcement of Business Regulations, Prosecution or Strike Off, and Commercial License Cancellation
Dissolution of Former Establishments
Required Documents for Company Formation in ADGM
If you want to set-up entities in the financial free zone in ADGM, you must fill-up the online or offline form (with extra charges), along with the necessary documents as follows-
Passport Copy with Visa Page or Immigration Entry Stamp
Company’s Proposed Name
Company Layout
Statement of Capital and Shareholding (for private companies limited by shares)
Statement of Guarantee (for private companies limited by guarantee)
Documentation of Trade Name Reservation
Statement of Proposed Officers
Statement of Company’s Intended Address
Copy of Proposed Articles of Association
Registration of Board of Directors
Copy of Lease Agreement for Workplace
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) Mandatory by Authorities
Therefore, company formation is considered to be an extended procedure in the UAE, which needs documentation and laws agreement. Also, you need to take the help of legal firms offering law advice to old establishments or new entities in the financial free zone.
