The main element of the system connects to the monetary of Abu Dhabi, administering via corresponding procedures used for creating a favourable monetary community. The ADGM Regulatory Authority gives vital support for organisations to deal with enrollment and process of licensing (very famous and desirable among them is ADGM Brokerage license), giving assistance such as certification of enrolling trademarks or naming establishments. Administration is carrying on responsibility for liquidation and restoring of interested companies, giving a possibility for involved establishments in a streamline operational world.
The solid base of Abu Dhabi markets are a strong regulational grounds and legislative system, all serving different sectors of buying and selling from regional to worldwide. The major offshore monetary centre is located in the United Arab Emirates, and its market has raised very quickly and became one of the 25 prime monetary centres in the world. Thanks to the Special Purpose Vehicle (SPV) regime, transformation in the field of finances and technical sphere and implementing the crypto-asset controlling process, which was the first one in the region.
Pros of partnership with Abu Dhabi finance establishment:
- Productive legal space, which is encouraging cross border activities.
- One hundred percent of global capital is approved, there are unlimited assets reparation.
- Unlimited employing for international employees
- Exemption from taxes for a term of 50 years for assets, profits and savings.
- Earnings of owner is free from taxes and not liable for custom duties
- Defending policy for data and safe business operations.
Regulatory Activities in ADGM and kinds of licence:
Responsibility for evaluation from companies willing to suggest monetary assistance in Arabic markets is lying on the Financial Service Regulatory Authority (FSRA). Depending on what type of licence is required according to the nature of organisation occupation there are several types of it. For example: if organisation needs a secure activities such as giving recommendations or organising some deals, it responds to Category 4 licence, for more complicated operations exists other licences:
- For Banks exists category 1. In order to obtain this kind of licence the start capital should be at least 10 millions dollars, company activities should be connected with collecting savings on deposit and administering a profit-sharing Investment Account (PSIAu)
- For Markets and Credit providers corresponds category 2. For those companies which are willing to obtain such a licence the solid savings should be at least 2 million dollars. Prolonged credit and outlying are the major occupation of them.
- For ADGM Brokerage license refers category 3A. Foundation of those foundations is 500 000 dollars. Organisations engaging in banking both as a matched principal and an agent.
- For Custodians exists category 3B. Solid savings of which should be not lower than 4 million dollars. This organisation should be occupied by offering wardship to fund an executor fiduciary guardian keeper warden.
- For asset and fund managers suggested category 3C, the financial strength of assets need to be at least 250 000 dollars, the prime aime of which is to manage assets and collect investment funds, giving wardship and stockpile.
- For Investment and Insurance Advisors the best one is Category 4. The entering assets should be not lower than 10 000 dollars. This organisations should be occupied with credit counsel, assurance intermediation, arranging outlay deals and supervising crowdfunding platforms
- For Islamic business it corresponds to Category 5. The financial strength needed for this category is 10 million dollars, and this category is available only for Arabian Business Principles.
ADGM Brokerage license.
In order to receive such a licence it is important to be a holder of solid foundation, 500 000$. Regulatory procedure standards ensure that brokers function within a structure that fosters transparency, effectiveness, and safeguards the interests of investors. And as it was mentioned above this licence refers to Category 3A. This kind of licence was specially designed for those establishments which are engaging into financing trading, dealing as matched principals or agents.
How to receive:
- Proposal Submission: The company provides a comprehensive proposal outlining planned actions.
- FSRA Assessment: The FSRA assesses the proposal considering the business’s nature and risk profile.
- Capital Obligations: The company must fulfil starting assets requirements according to its category
- Approval and Issuance: after successful evaluation, the licence is approved allowing the company to begin regulated activities in ADGM.
The Financial Services Regulatory Authority (FSRA) serves as the vigilant guardian of ADGM’s ecosystem of finances, ensuring its integrity and resilience. It meticulously monitors operations, employing a nuanced, risk-focused approach to supervising. Through proactive investigations, it swiftly addresses potential breaches and regulatory appeals, fostering a culture of compliance and accountability.
With a steadfast commitment to combating monetary crimes, the FSRA implements stringent measures aligned with global standards, safeguarding against money laundering and terrorist donation. Its compliance frameworks provide clear guidance, empowering monetary institutions to fulfil their operations in obligations effectively.
In partnership with Abu Dhabi’s institutions of monetary, the organisation FSRA offers a plethora of advantages, from tax exemptions to a robust supervising pattern. Acquiring an ADGM Brokerage license entails a transparent proceeding overseen by the FSRA, underscoring the commitment to maintaining elevated standards in his dynamic monetary hub.
By adhering to these principles, business concerns thrive within a secure and nurturing world, enhancing ADGM’s reputation as a prime global financial centre, poised for sustainable growth and modernisation.
How to make a request for a Regulated Licence in DIFC?
DIFC, which stands for the Department of International Financial Сentre, gives a variety of controlling options for DIFC, aimed to defend the monetary system and markets in Dubai. One of the duties of this establishment is to regulate licensing in UAE, DIFC issues licences in order to obtain business in Dubai. It is obligatory for any organisation that deals with business in UAE to have a licence which is pure to provide their operations in a permission of DIFC.
How to register a financial service establishment in the UAE?
If you are willing to register a monetary service in the UAE, your establishment has to obtain at least 500 000Dh of capital. It should be issued by authorities and basic documents such as trading license, copy of passport, memorandum and articles of association.
How to set up a regulated license in ADGM?
If you need to get a regulated license in ADGM, from the beginning you have to by getting consultation with the ADGM licensing services and regulatory assistance. They are authorised to give you information concerning your product (whether you need a license or it is not required, and if it needs how you can get it). For commencing such dialog, you need a precise description of your product.
What are the procedures for regulated license in Dubai?
The UAE’s endeavour towards fostering supervising financial ecosystem necessitates meticulous registration with the central bank, coupled with a strategic alignment with DIFCA’s objectives through a Memorandum of Understanding, underscoring the significance of adhering to established regulatory norms.
How to set up a representative office in Dubai?
In navigating the establishment of a Representative Office in Dubai, stringent compliance with permitted activities and procedural requirements is vital, encompassing a thorough business plan submission and attestation of corporate documents. A Branch Office can include one of the following:
Providing information concerning financial assistance ar products suggested by head office or a Group member outside the DIFC
Involving in Financial Promotions (such as seminars or holding events), which are related to the financial products or monetary assistance referred to those things which are mentioned above; and
Producing introductions or referrals to their chief office or a member of their group for the financial assistance or monetary products suggested by them outside the DIFC.
Actions which are not allowed:
Arranging deals
Advising
Promotion of any third-party products
Marketing financial products of a related party located in DIFC
Requirement for comply
Requiring of officer
A resident representative, who is authorised
Annual AMLreturn filing
Requirements:
Precise business plan
Corporated documents authorised from UAE Embassy in Country of origin
Copy of passport of authorised representative
UBO passport copy
Financial Regulatory Authority certificate of parent
General procedure:
Submission of intent letter to DIFC
Initial application with DIFC
Submission of Business plan to DFSA
Initial Application with DFSA
Presentation meeting with DFSA
Obtaining principal approval from DFSA
Identifying office place
Completion of registration of organisation with Register for companies (Office set-up, Visa bank account opening and so on)
Inspection of DFSA
DFSA Authorisation
Time needed:
As often, it took about 3-5 months from the date of intent submission. However, time will depend from appropriate authorities
What is the technology license in DIFS?
DIFC is introducing licenses for digital tech companies to foster innovation and entrepreneurship. The framework includes two types of licenses: Digital Technology Innovation License (DTLI) and Digital Innovation Business License (DIBL). Applicants must meet 37 criteria, but these licenses suggest enhanced legal protection for tech matters.
How to receive central bank approval for a regulated license in UAE?
The UAE’s Central Bank oversees banking operations and licences for monetary institutions, recently announcing plans to strengthen regulations for issuing business licences. Banks must submit detailed plans covering finances, risk management, and internal controls for approval under Regulation No. 1 of 2002. This regulation aims to uphold UAE’s international commitments to transparency, accountability, and compliance with global banking standards. Following review, an initial approval allows applicants to proceed with formalities like appointing officers and securing office space. Final licensing is granted upon meeting all conditions.
How to register a foundation in DIFC?
The DIFC Authority has released guidelines for establishing foundations within the Dubai International Financial Centre, distinguishing between private and public foundations based on their objectives and scope of operations. Private foundations focus on specific charitable or social goals for a defined group, while public ones have broader social agendas. Setting up a private foundation requires demonstrating the intended use of funds and regulating its duration. Approval from the DIFC Authority is necessary, granted after evaluating the foundation’s objectives and benefit to the DIFC community.
Additionally, the DIFC has introduced an Innovation Licence tailored for startups, entrepreneurs, and tech firms. This initiative aims to attract new enterprises to the Center and aligns with Dubai Future District’s vision led by His Highness Sheikh Mohammed bin Rashid Al Maktoum. The licence aims to foster regional renovation and entrepreneurship by offering commercial licensing options at reduced costs. Furthermore, companies holding this licence will enjoy discounted access to DIFC сo-working spaces.