New Commercial license for Technology Start-ups by ADGM
The Abu Dhabi Global Market (ADGM) has launched a new commercial license for technology startups. According to a press release posted on their website on 2nd August 2018, the new ADGM operational license enables entrepreneurs to take advantage of the same globally recognized international operating standards that existing entities registered in ADGM benefit from. The license is highly flexible, allows start-ups to access a full operational license and apply for up to four residential visas. There is no requirement to have a permanent and physical office space, thereby saving on rent and other operational costs. A virtual office space can be used if required, however it needs to be provided by an ADGM registered service provider. The costs for this license are about $700.00 per annum. Entrepreneurs from all nationalities with technology-driven start-ups aligned with the UAE National Innovation Priority Sectors can apply for this license.
In order for the license to be renewed after the second year, companies must be able to show progress in terms of revenue and/or sufficient level of investments. The successful companies can then either be converted to a traditional operational entity on normal license terms or be converted into a holding company.
The license also provides access to the ADGM’s Entrepreneurship Support Program. Per the ADGM’s website, this program was developed in partnership with key local and international partners and aimed at equipping entrepreneurs with the skills and resources needed to succeed and scale their start-ups.
Another successful initiative by the ADGM that is in operation since October 2017 is the FinTech Abu Dhabi Summit. The summit brings together global and local financial institutions, start-ups, investors, regulatory agencies and the business community to network, collaborate and exchange expertise and knowledge in financial technology developments. It also provides a platform for the community to discuss trending topics and business issues that will shape the digital economy.
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