Free Zones

ADGM: Company Setup & Accounting Guide

2025-12-21 · 4 min read · By Aureus Worldwide

ADGM, the Abu Dhabi Global Market, is Abu Dhabi's international financial centre, located on Al Maryah Island, and one of the UAE's two common-law financial free zones. Like the DIFC, it operates under an independent legal framework with its own courts and an independent regulator, the Financial Services Regulatory Authority (FSRA). This guide explains how an ADGM company setup works, the difference between regulated and non-regulated entities, the steps, and the accounting, audit and tax obligations that follow.

Why choose ADGM

ADGM is built for financial services, asset management and sophisticated corporate structures. Its draws are a common-law system that applies English common law directly in key areas, the independent ADGM Courts, a respected regulator in the FSRA, and a growing ecosystem in Abu Dhabi. It is also well known for flexible structures such as SPVs and foundations used in holding, wealth and succession planning. It offers 100% foreign ownership and profit repatriation, with credibility as its core value.

Who it suits

ADGM is a strong fit for:

• Asset and wealth managers and funds
• Banks, insurers and financial advisers
• Fintech firms (including under its innovation framework)
• Holding companies, SPVs and foundations
• Family offices and professional-service firms serving finance

Regulated versus non-regulated entities

As in the DIFC, the key question is whether your activity is a regulated financial service:

Regulated firms must obtain FSRA authorisation and meet capital, governance and reporting requirements; non-financial businesses register with the Registration Authority without FSRA authorisation. Our DIFC and ADGM service helps you place your business correctly.

Setup steps

1. Confirm your activity and whether it is a regulated financial service.
2. Choose your structure, private company, branch, SPV, foundation or fund.
3. For regulated firms, prepare the FSRA application, business plan, capital, governance, controlled functions.
4. Reserve a name and submit corporate documents to the ADGM Registration Authority.
5. Secure premises in ADGM as required.
6. Obtain the licence and any FSRA authorisation, then process establishment card and visas.
7. Open a corporate bank account, see our bank account guide.

Our company formation team coordinates the corporate side and works with specialists on FSRA matters.

Accounting, audit and tax considerations

ADGM entities face robust obligations:

• Bookkeeping and standards. Maintain accounting records, typically under IFRS, see our accounting service.
• Audit. Most ADGM entities must prepare and file audited financial statements, with additional regulatory reporting for FSRA-authorised firms. Aureus is not an ADGM-approved auditor; we arrange audit through licensed partner firms and support you throughout, see our audit service and our ADGM finance-officer guide.
• Corporate Tax. ADGM entities fall under UAE Corporate Tax. A qualifying free zone person may access 0% on qualifying income with substance and within the de minimis limits; otherwise 9% applies above AED 375,000. Holding and financial activities have specific considerations, so take advice, see our tax service.
• VAT and substance. Register for VAT where thresholds are met, and meet substance and reporting rules where relevant.

Timeline, costs and ongoing obligations

Setting up a non-regulated ADGM entity, an SPV, foundation, holding or tech company, is the faster path, often a matter of weeks once corporate documents are in order, and ADGM's SPV and foundation regimes are valued for being efficient. A regulated firm seeking FSRA authorisation should plan for a materially longer process, since the regulator assesses the business plan, capital, governance and controlled functions before granting permissions. Costs vary by entity type, premises and category, and ADGM and the FSRA revise their fees periodically, so confirm current charges directly with them rather than relying on third-party figures. Beyond setup, ADGM entities renew annually and must keep audited accounts, corporate filings and, for authorised firms, regulatory returns current throughout the year, strong accounting and compliance from the outset keeps this manageable.

ADGM at a glance

ADGM versus DIFC

ADGM (FSRA) and the DIFC (DFSA) are the UAE's two common-law financial free zones, in Abu Dhabi and Dubai respectively. Both offer common-law frameworks and strong regulators; ADGM is often noted for its SPV and foundation regimes and Abu Dhabi base. The right choice depends on location, regulator fit, activity and ecosystem. Our DIFC and ADGM service compares them for your case.

How Aureus Worldwide helps

Aureus Worldwide helps clients establish in ADGM, placing the business correctly between regulated and non-regulated paths, handling the corporate setup through our company formation team and coordinating FSRA specialists where needed. We keep you compliant with accounting, Corporate Tax and VAT, and arrange audit through licensed partner firms, as we are not an ADGM-approved auditor. We confirm changeable rules and fees with ADGM and the FSRA before you commit. To set up in ADGM, contact us.

Talk to our chartered accountants →