ADGM-Only Entities Can Offer Now Services Throughout Emirate
by Lorys Charalambous, Lowtax.net, Cyprus
17 November, 2017
Licenses received by Abu Dhabi Global Market (ADGM) companies will be recognized by the mainland regulator under a deal with the emirate's Department of Economic Development (ADDED).
ADGM is a relatively new international financial center located on Al Maryah Island, which opened to businesses in October 2015. It offers a range of attractive benefits to firms, including exemption from taxes guaranteed for 50 years, and relaxed rules on the repatriation of profits. ADGM also permits 100 percent foreign ownership.
According to the center, the agreement provides for mutual recognition of licenses that will enable dual licensing of eligible entities.
"The agreement between ADGM's Registration Authority and ADDED allows entities established on Al Maryah Island to hold both an ADGM commercial and an ADDED trade license on condition that they satisfy and fulfill the respective licensing requirements of each jurisdiction and operate according to their respective rules and regulations. This dual licensing also allows for ADGM registered entities to service their clients in the Capital without the need of having an office presence in Abu Dhabi mainland. ADGM entities seeking to provide financial services to clients in the Emirate of Abu Dhabi will remain subject to any other relevant regulatory obligations and applicable laws, including any licensing requirements which may be imposed by any Federal regulators of financial services," ADGM said.
To obtain dual licensing, entities must satisfy and fulfill the licensing requirements of each jurisdiction, as well as operate according to their respective rules and regulations.
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