Establishing an SPV in the ADGM - 10 Leaves

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2019-01-03 19:35
Description : The Abu Dhabi Global Market (ADGM) has been open for business only since October 2015, but it has already garnered much praise and respect over its efforts to
differentiate itself through unique offerings. It recently concluded the inaugural FinTech Abu Dhabi summit, attended by over five hundred global Financial Technology (FinTech) personalities; and has launched a series of collaborations with different companies such as Temenos, Al Ansari, and Mastercard to help forward its FinTech initiative.

Another such initiative is the Special Purpose Vehicles (SPV) regime. The SPV regime is open to a wide variety of business types, uses, and industry sectors, such as
corporates, government-related entities, single family offices, sovereign wealth funds, trustees, and individual investors.

Lets take a look at the main advantages below:

1. The cost of setting up is considerably reduced:

Registration is not as costly for SPVs as it is for normal private limited companies, and there is no need to acquire a physical office space?—?SPVs only need to
provide a registered address to the Registrar, which can be the address of a corporate service provider, an existing company, a holding company, or a virtual office.
The fully digital application also means that you spend less time applying.

2. The ADGM offers limited public disclosure in some cases:

Restricted Scope Companies (RSC) can avail of this advantage. It will be desirable for family offices that want to manage their assets discreetly, as well as for
multinational corporate groups that require passive entities.

The limited public disclosure applies to an RSC’s records of Directors, Shareholders, financial statements, beneficial ownerships, and filing of accounts.

3. The legal system is based on English common law:

The ADGM is an independent jurisdiction, with its own court as well as its own civil and commercial laws. Its foundation on the common law means it is directly applicable and it provides high levels of legal certainty.

Establishing an SPV in the ADGM will give you a platform to fulfill any narrow, specific, or temporary corporate goals you may have in mind. As an up-and-coming international financial centre in the capital of the United Arab Emirates, you can rest assured that establishing a business in the area will enable you to conduct business with plenty of support and to operate with confidence.

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