Cost Of Setting Up A Holding Company In The ADGM

1. Cost Of Setting Up A Holding Company In The ADGM Consolidation and management of assets is one of the key points of concern for investors worldwide, and even more so in the GCC. A growing investor ecosystem, coupled with the high density of family wealth in the region, call for robust structures that can help high net worth individuals manage their investments. One such structure is an​​ ADGM holding company​ . What is a holding company? A holding company consolidates investments, be it shares in other companies or property, under a common umbrella, for ease of management and reporting. Such companies do not usually carry out a trade or service – they merely manage existing investments. The management team of the holding company also seeks to make new investments, based on certain predetermined criteria, to expand their existing portfolios. The Abu Dhabi Global Market, or ADGM, provides an excellent corporate structure to facilitate such activities – an ADGM holding company. Why setup a holding company in the ADGM? The ADGM is an upcoming financial center in the region for business and fintech. ADGM holding companies can be used to hold assets within the UAE, the GCC, or anywhere else in the world. These include real property and shares in other companies in the UAE and worldwide. Here are some reasons why setting up a holding company in the ADGM makes sense. The maximum number of visas you can apply for will depend on both the type of business you plan on setting up as well as the size of the premises you lease in the ADGM. Specific Advantages Here are some specific advantages of ​ company formation in Abu Dhabi Global Market LEGAL AND REGULATORY FRAMEWORK ● The legal framework supports cross-border activities ● 100% foreign ownership permitted ● No restriction on foreign talent or employees ● No restrictions on capital repatriation

2. TAX BENEFITS ● Zero tax for 50 years on profits, capital or assets ● Zero tax on employee income COUNTERPARTY CONFIDENCE ● Well regarded, independent regulator ● Independent, English-speaking, common law judicial system ● Distinct from the UAE legal system ● Risk-based regulatory approach DIVERSE ECOSYSTEM ● Central to regional deal making ● High concentration of international firms, investment funds, wealth management firms, banks, and financial institutions ● World-class regional and international law and auditing firms, and other professional services ● A growing fund domicile in the region GEOGRAPHIC EPICENTRE ● Management offices, holding companies and family offices are located closer to the assets they own or manage ● The Middle East, Africa and South Asia (MEASA) is increasingly the centre of gravity for the global economy ● The UAE plays a central role in the growing South-South trade, principally between Asia and Africa ● Well-positioned to harness the potential of emerging markets

3. Costs Setting up an AGDM Holding Company involves the following interactions: Registration Authority​ (RA) The RA helps to set up the legal structure of the ADGM Holding Company. In most cases, this would be a Private Company Limited by Shares. Shareholders can be individual, or corporate. The costs for setting up such a company are: Application​ for ​ reserving a name​ : ​ US$ 200 Application​ for ​ Incorporation​ of a Private Company Limited by Shares: ​ US$ 1,500 Commercial License​ on Incorporation: ​ US$ 4,000​ (annual fee) Business​​ Activity​ fees: ​ US$​​ 4000​ (annual fee) Data Protection The data protection notification is part of the process of registering a new entity in the ADGM. The costs involved are as follows: Registration - ​ US$ 300 Annual renewal – ​ US$ 100 Office spaces Every entity registered in the ADGM is required to lease a physical office. You can choose from business center options, or physical spaces within the ADGM. Here is an indication of the prevailing rates: Business Centre​ – from a one-desk office at ​ US$ 19,000​ . Fitted Offices​ – from ​ US$ 55​ per square foot. Visas Establishment​​ Card​ Application – US$ 273 E-channel​ – US$ 1,100 (one-time) E-channel deposit​ – US$ 1,360 Visas​ (per visa) – from US$ 1,500

4. Costs Summary US$ Application for reserving a name 200 Application for Incorporation 1,500 Commercial License 4,000 Business Activity fee 4,000 Data Protection Registration 300 Office spaces (business center), from 19,000 Fitted Offices, from 40,000 Establishment Card application 273 E-channel 1,100 E-channel deposit 1,360