What Are The Costs Associated With ADGM Company Setup?

What Are The Costs Associated With ADGM Company Setup?

Setting up a company in the Abu Dhabi Global Market (ADGM) offers a wealth of opportunities for entrepreneurs and businesses looking to expand into one of the UAE’s most vigorous financial hubs. However, as with any business establishment, there are several costs to consider when setting up a company within this financial free zone. Understanding these costs is important for planning your budget and ensuring the long-term success of your business.

Company registration fees:

The first cost you’ll incur during the ADGM company setup process is the registration fee. This fee covers the application for your trade license and the initial registration of your company with ADGM. Depending on the type of business and its structure, the registration fee can range from a few thousand to several tens of thousands of AED. It’s important to confirm the exact registration fee with ADGM or a company setup consultant before beginning the process.

License fees:

Once your company is registered, you will need to pay an annual licensing fee to maintain your trade license. This fee can vary depending on the business activity, the legal structure you select, and the number of employees you plan to hire. ADGM offers different license options, such as financial, professional, and trading licenses, each with its own fee structure. License fees typically start from around AED 10,000 and can go higher depending on the complexity of your business.

Office space costs:

ADGM requires that companies have a physical office within the free zone. The cost of office space varies based on location, office size, and whether you opt for a virtual office or a full-service office. While a virtual office can be relatively inexpensive, renting a physical office will typically cost more, with prices ranging from AED 15,000 to AED 100,000 per year depending on the space and facilities provided.

Share capital requirements:

Depending on the type of company you establish, you may be required to deposit a certain amount of share capital. While ADGM has no minimum share capital requirement for most business types, it is essential to review your specific legal structure to confirm any capital requirements. This is an initial investment that ensures the company is adequately funded for its operations.

Other fees and charges:

There are additional costs that may be required depending on your business activities. These include fees for professional services such as legal advice, accounting, and auditing services. You may also need to pay for visas, employee sponsorships, and other regulatory requirements. These fees can vary widely based on the scale of your business and the number of employees.

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