The benefits of ADGM

Not a code modelled on common law — the thing itself. English common law, including equity, applies directly under the Application of English Law Regulations 2015[ADGM Courts — English common law], on an evergreen basis as case law stands from time to time[ADGM — English law guidance].

For a shareholders' agreement, a security package or a trust arrangement, that means the governing law is the one your counsel already knows, complete with two centuries of authority. ADGM is the first jurisdiction in the Middle East to take the approach Singapore and Hong Kong took.

The nuance that must travel with the claim: 47 English statutes apply on a fixed date basis and later English amendments do not carry over[ADGM — English law guidance]. See English common law in ADGM.

ADGM Courts comprise a Court of First Instance with four divisions and a Court of Appeal, conducting all proceedings in English, with judges drawn from the most senior levels of the judiciary of the world's leading common law jurisdictions[ADGM Courts].

The underrated part: ADGM Courts have not instituted a registration system of lawyers as a pre-requisite for a right of audience[ADGM Courts — FAQs], so a foreign party may not need to instruct and pay a separate local agent alongside its own counsel.

And the opt-in jurisdiction means this forum is available even to contracts with no other ADGM connection[ADGM Courts — FAQs].

The SPV at specialised fee rates; the Restricted Scope Company with limited public-register disclosure for those who qualify[ADGM — SPV brochure]; the Foundation, which ADGM was the first UAE jurisdiction to offer[ADGM — Foundations regime]; and the DLT Foundation for blockchain projects, DAOs and Web3 entities[ADGM RA — Schedule of Fees].

DIFC has neither the RSC nor the DLT Foundation. A general UAE free zone has none of them.

Three things that sound administrative and are not:

• No attestation required for corporate documents[ADGM — SPV brochure] — a certified copy, certified within three months, replaces the notarisation-and-legalisation chain many jurisdictions demand.
• No requirement to attend. The process is digital and shareholders need not be physically present[ADGM — Setting up FAQs].
• Continuance under section 102 of the Companies Regulations, so an existing company from the BVI, Cayman, Jersey or Guernsey can be moved in rather than rebuilt[ADGM — SPV brochure].

From 1 January 2025 ADGM cut commercial licence fees for non-financial businesses from USD 10,000 to USD 5,000, and for retail from USD 6,000 to USD 2,000, with retail renewals halved[ADGM — 2025 fee reduction].

That is unusual enough to be worth noting on its own. It also means older comparisons are not slightly stale but roughly double — see ADGM company formation cost.

This section is why the page is worth reading, and it is the one competitors omit.

0% corporate tax on qualifying income. Corporate tax is federal. The same Qualifying Free Zone Person test applies in every UAE free zone[UAE Ministry of Finance], and ADGM does not alter it. If someone is selling you ADGM primarily on tax, they are selling you something federal law already decided and that you would have in a cheaper free zone too.

100% foreign ownership. Standard across UAE free zones, and available for most mainland activities since 2021. Not a differentiator.

Unrestricted profit repatriation. Not restricted in the alternatives either.

There is also a fourth thing ADGM is not: an offshore jurisdiction you can use from anywhere. An SPV must satisfy the Nexus Requirement, and appointing a local service provider does not create one[ADGM RA — SPV Guidance Note]. For a large share of overseas enquiries that is the single most important fact on this site.

For the fuller ledger including the drawbacks, see is ADGM worth it.