Types of Legal Entities in Abu Dhabi Global Market (ADGM)
Abu Dhabi Global Market (ADGM) is an international financial centre and free zone located across Al Maryah Island and Al Reem island in the United Arab Emirates’s capital, Abu Dhabi. Established in 2013 and fully operational since 2015, ADGM provides a globally recognized business ecosystem governed by three core authorities: The Financial Services Regulatory Authority, The Registration Authority, The ADGM Courts.
One of the key decisions when setting up a business in ADGM involves selecting the appropriate legal entity. Each option comes with distinct documentation, governance requirements, and operational flexibility.
Types of Legal Entities in ADGM
Public Company Limited by Shares.
A PLC can issue shares to the public. It requires a minimum share capital of USD 50,000. At least two shareholders (one individual) and a company secretary are mandatory. Shareholder liability is limited to their shareholding.
Private Company Limited by Shares
Privately owned, an LTD cannot offer shares to the public. It requires at least one individual shareholder and one director (individual or corporate). There is no minimum capital requirement, and a secretary is optional. The liability of the shareholder is limited to the amount paid or unpaid on the shares held by the shareholder.
Private Company Limited by Guarantee.
Ideal for member associations, this structure does not distribute profits or divide assets into shares. It requires one guarantor and one director, with no minimum share capital or secretary requirement.
Restricted Scope Company
Designed for entities prioritizing confidentiality and lighter compliance (e.g., family offices), this entity allows limited public disclosure. It can only be formed under specific conditions, such as being a subsidiary of a publicly filing group , or as a subsidiary of a company formed by Emiri decree or by an individual/members of the same family.
Private Company Unlimited with or without Shares.
Unlimited companies carry no restriction on shareholder liability. While not requiring a minimum share capital, they demand one shareholder and one director. Secretary service is optional.
Branch of a Foreign Company
Foreign companies can establish a small ADGM presence through a branch. This requires one authorized signatory.
Partnerships in ADGM
Limited Liability Partnership (LLP)
Popular among professionals like accountants and lawyers, this structure protects each partner’s personal assets and each partner from debts or liability incurred by the other partners while working together. This requires at least two partners and one authorized signatory.
General Partnership
Partners share unlimited liability for business obligations. Two partners and one signatory are required.
Limited Partnership
In this structure two or more partners jointly conduct business in which one or more of the partners is liable only to the amount he has invested. This structure balances liability protection and investment flexibility. It requires two partners (one general, one limited) and one signatory.
Branch of Foreign Partnership
Foreign partnerships (LLP or Limited Partnership) can establish branches in ADGM, maintaining their original member structures while with one authorised signatory.
Specialized Entities in ADGM
Protected Cell Company (PCC):
PCC is a single legal entity which is comprised of a core and several cells that have separate assets and liabilities. This is ideal for risk management as it allows segregation of assets and liabilities across individual cells,. They can be set up as Public or Private Limited Companies.
Incorporated Cell Company (ICC):
Unlike PCCs, ICCs treat each cell as a distinct legal entity without shareholder relationships between cells and the parent company. They can be set up as Public or Private Limited Companies.
Investment Company:
Engaged in pooled capital investments, these entities can take forms such as PLCs, LTDs, or Private Unlimited Companies.
Why choose ADGM?
ADGM’s comprehensive legal structures cater to diverse business needs, from start-ups and professional firms to investment and holding companies. Its commitment to innovation and transparency makes it a prime destination for global enterprises. ADGM also offers a business-friendly environment with its framework completely based on the English common law.
Incorporating business with our assistance.
At ECAG Incorp, we bring over 20 years of experience and have successfully served thousands of multinational and SME clients across the UAE, Bahrain, the UK, and India. Our team is highly dedicated to serving you with the best assistance on your company formation from documentation to opening a corporate bank account.
Beyond incorporation, we offer services in auditing, accounting, taxation, and corporate governance to ensure your business remains compliant and successful.