ADGM for a family office or fund
Should my family holding company be set up in ADGM rather than a normal free zone?
The situation
ADGM is a financial free zone in Abu Dhabi with its own registrar, regulator and common law courts. It suits funds, family offices and regulated finance, but costs and governance are higher.
The law
- Art 18, Federal Decree-Law 47 of 2022: ADGM entities can be Qualifying Free Zone Persons if conditions are met
- Cabinet Resolution 109 of 2023: Financial free zones such as ADGM and DIFC are outside this federal UBO resolution and apply their own rules
What it means for you
Holding activities, such as owning shares, can be qualifying activities if substance is met. Dividends and gains from qualifying participations may be exempt under the participation exemption anyway. Example: a holding company owning 30 percent of an Indian company may get exempt dividends through participation rules regardless of the zone. Choose ADGM for legal certainty, not only tax.
What to do
- Write down what the holding company will own and earn.
- Check participation exemption for each holding.
- Compare ADGM and other zone costs.
- Plan board meetings and staff in the UAE for substance.
We can do this for youFree zone company setup: choosing between DMCC, JAFZA, IFZA, Meydan, RAKEZ, ADGM and others, licence, visas and tax status: AED 3,500