Complete Guide to ADGM Company Setup Costs in 2023
Setting up a company in Abu Dhabi Global Market (ADGM) offers numerous benefits including 100% foreign ownership, tax exemptions, and a world-class regulatory framework. However, understanding the complete cost structure is essential for proper budgeting.
ADGM Setup Cost Breakdown
The typical cost to establish an ADGM company ranges from AED 50,000 to AED 300,000 depending on business activities, office requirements, and number of visas needed.
1. License Fees
ADGM offers three main license categories with varying fees:
| License Type |
Registration Fee (AED) |
Annual License Fee (AED) |
| Financial Services |
15,000 |
15,000-50,000 |
| Non-Financial Services |
15,000 |
10,000-20,000 |
| Retail |
15,000 |
25,000+ |
2. Visa Costs
Each employee or shareholder requiring residency will incur these costs:
- Visa application fee: AED 3,000-5,000
- Medical test: AED 500
- Emirates ID: AED 370
- Health insurance: AED 3,000-10,000 annually
3. Office Space Requirements
ADGM mandates physical office presence with these typical costs:
- Flexi desk: AED 15,000-25,000 annually
- Private office (500 sq.ft): AED 60,000-120,000 annually
- Retail space: AED 100,000+ annually
For more detailed information, refer to the official ADGM website or consult with registered service providers.
Cost Comparison: ADGM vs Mainland vs Free Zones
| Cost Factor |
ADGM |
Mainland |
Other Free Zones |
| Setup Cost |
Medium-High |
Low-Medium |
Low-High |
| Foreign Ownership |
100% |
51% local |
100% |
| Regulatory Oversight |
High |
Medium |
Low-High |
Tips to Reduce ADGM Setup Costs
- Start with flexi-desk options before committing to private office
- Use registered service providers for bundled packages
- Apply for ADGM's startup license if eligible
- Phase visa applications based on actual needs
Common Pitfalls to Avoid
- Underestimating operational compliance costs
- Not accounting for visa processing delays
- Choosing wrong license category leading to amendments
- Overestimating first-year revenue projections
For financial services businesses, additional capital requirements may apply. Consult with specialized consultants for accurate budgeting.
Frequently Asked Questions
What is the minimum capital requirement for ADGM company setup?
There is no minimum capital requirement for most ADGM company types, except for certain financial services activities that may have specific capital adequacy rules.
How long does the ADGM company registration process take?
The registration process typically takes 2-4 weeks for straightforward applications, but can extend to 8-12 weeks for financial services companies requiring regulatory approval.
Can I operate outside ADGM with an ADGM license?
ADGM licensed entities can operate within the ADGM jurisdiction and internationally, but require additional licensing to operate on the UAE mainland.
What are the tax implications of setting up in ADGM?
ADGM companies benefit from 0% corporate and personal income tax, no restrictions on capital repatriation, and double taxation treaties.
Do I need a local sponsor in ADGM?
No, ADGM allows 100% foreign ownership without requiring a local sponsor or service agent.
What is the cost difference between ADGM and DIFC?
ADGM setup costs are generally 10-20% lower than DIFC for comparable structures, with more flexible office space requirements.
Can I convert my existing UAE company to ADGM?
Yes, existing UAE companies can re-domicile to ADGM through a formal process that typically takes 4-6 weeks.
What banking options are available for ADGM companies?
ADGM companies can access both onshore UAE banks and international banks with ADGM presence, including ADGM's own financial ecosystem.
Are there any hidden costs in ADGM setup?
Potential additional costs include legal document attestation, compliance consulting, and regulatory capital for financial services firms.
How often do license fees need to be renewed?
ADGM license fees are payable annually on the anniversary of company registration, with late payment penalties applied after 30 days grace period.
