Setting up a Special Purpose Vehicle(SPV) in Abu Dhabi Global Market(ADGM)
Abu Dhabi Global Market is abroad based international financial centre for local, regional and international institutions. ADGM provides a broad range of services covering insurance, wealth management, banking, asset management and capital market activities.
ADGM has 3 independent authorities i.e. the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA) and the ADGM Courts which ensure that business-friendly environment operates in line with international best practice that are recognised by major financial centres across the world.
Benefits & Incentives offered by ADGM:
100% Foreign Ownership
100% Tax(Import & Export) Exemption
100% repatriation of Capital & Profits
No office required based on an agent being appointed
No restrictions on the number of shareholders
Independent ADGM courts
What is Special Purpose Vehicle(SPV)?
SPVs are corporate vehicles, typically private companies, established for the purpose of isolating financial and legal risk by ring-fencing assets and liabilities.SPVscanbeestablishedassubsidiaries,projectorjointventurevehiclestoensurethatonlythoseassetsrelatedtoatransactionareexposedtotheliabilitiesassociatedwiththattransaction.AsthekeyfeatureofanSPVisitsseparatelegalpersonality,claimsbytheSPV’screditorscannotattachtotheassetsoftheSPV’sshareholders or any of its sister companies.
Abu Dhabi Global Market, Abu Dhabi, (U.A.E.)
Uses of SPV:
Securitisation, Real Estate Investment, Financing, Asset Transfer, Risk Transfer
Risk Sharing, Raising Capital & Intellectual Property
Type of Entity:
Private Company Limited : Standard Private Limited Company & Passive Private Limited
Restricted Scope Company (RSC): subsidiary of a group which publicly files consolidated accounts, A Single Family Office & A subsidiary of a company formed by Emiri decree
Individual or Corporate entity
No minimum share capital
Individuals & Corporate (Minimum one individual mandatory)
Annual audit report to be filed in case of more than 35 employees or turnover above USD 13.5 million in limited company
Limited Company’s annual accounts to be filed
2-3 weeks to obtain trade license of the company
Some of the basic documents required to set up SPV in ADGM are:
Passport, visa & emirates ID copy of sharehoder(s)/director(s)/manager
NOC from current sponsor for shareholder(s)/director(s)/manager (applicable if holding UAE residence visa)
CV of shareholder(s)/director(s)/manager
Copy of lease agreement or signed consent letter for provision of Registered office
Specimen signature form & passport size photo for shareholder(s)/director(s)/manager
NOC from external departments (if any)
ADGM licensing fee for SPV is US$ 1,600/- in addition to the cost of rentals & agent fees.
How can GBS help?
Global Business Services (GBS) is a professional organization that offers advisory, commercial, accounting, company formation & administration services in tax efficient jurisdictions around the world. The team at GBS has since inception, developed an excellent understanding of corporate requirements.