The fee updates stem from a series of consultations with the ADGM business community in 2023, aimed at expanding the jurisdiction and enhancing the ease of doing business.
ADGM has announced a revised fee schedule for obtaining and renewing commercial licenses, which will take effect on January 1.
These revisions include significant reductions in fees for non-financial and retail businesses, aiming to further enhance ADGM’s business-friendly ecosystem.
Following the end of the Al Reem Island transition period on December 31, 2024, the new fee structure introduces cuts of up to 50 percent or more for businesses in the non-financial and retail sectors within the jurisdiction of the international financial center, which encompasses Al Maryah and Al Reem Islands.
Key Fee Changes Introduced by ADGM
Non-Financial Sector:
- Initial registration fees reduced from $10,000 to $5,500.
- Annual license renewal fees now set at $5,000, down from $8,000.
Retail Sector:
- Initial registration fees cut from $6,000 to $2,500.
- Annual license renewal fees reduced from $4,000 to $2,000.
These changes are part of the international financial center's ongoing efforts to make the jurisdiction more attractive and accessible to a broader range of businesses.
Broader Changes in the Fee Structure:
While the non-financial and retail sectors benefit from substantial reductions, other categories will see fee adjustments:
- Financial Sector: Initial registration fees will rise from $15,000 to $16,700, with annual renewals increasing from $13,000 to $16,200.
- Tech Startups: Fees for both new registrations and annual renewals will increase from $1,000 to $1,500.
Additionally, all businesses within the international financial center will be subject to a $300 data protection fee at the time of both new registration and annual renewal.
Fee Structure Based on Consultations with the Business Community:
The fee updates result from a series of consultations with the ADGM business community in 2023, focusing on expanding the jurisdiction and improving the ease of doing business.
ADGM’s Registration Authority (RA) used the feedback to conduct a thorough review of its fee structure, ensuring alignment with the evolving commercial landscape and facilitating a smooth transition for businesses in the region.
Hamad Sayah Al Mazrouei, CEO of ADGM RA, emphasized the importance of this initiative: “The revised fee structure underscores our ongoing commitment to fostering a dynamic business environment within ADGM. By reducing fees for non-financial and retail businesses, we are further cultivating an ecosystem that supports both new entrants and established firms, reinforcing ADGM’s position as a leading global financial hub.”
With the end of the Al Reem Island transition period, fee exemptions previously available to qualifying businesses in the non-financial and retail sectors have now been discontinued.
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