Compliance Filings

In ADGM, compliance filings are paramount, ensuring businesses adhere to regulatory standards and maintain transparency. These filings not only demonstrate commitment to legal requirements but also foster trust, credibility, and sustained success in the globally recognized business environment of ADGM.

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Mohammad Shafeek

Founder & Group CEO, MS

Let MS empower your business in ADGM

Mindful Compliance, Timely filings

Compliance filings in ADGM are integral to business success, serving as a cornerstone for regulatory adherence and operational transparency. Ensuring timely and accurate submissions, these filings underscore a commitment to legal standards, mitigating risks and bolstering trust with stakeholders. Beyond regulatory compliance, they play a pivotal role in maintaining financial integrity, supporting strategic decision-making, and safeguarding a company's reputation. By navigating the intricate regulatory landscape of ADGM, businesses not only enhance their global standing but also demonstrate a dedication to ethical business practices, fostering long-term sustainability and credibility in the international marketplace.

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Why MS
as your partner for Compliance Filings in ADGM

Compliance filings in ADGM with MS will be seamless with our expert team. MS turns as your reliable guide in the complex regulatory environment of ADGM. Our customized services, which range from accurate document preparation to strategic consulting, accelerate the compliance process and free up time for businesses to concentrate on their core competencies.

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Frequently Asked Questions (FAQ)

Can I choose any company name for the ADGM proposed company?

The company name must be compliant with the ADGM Business and Company Name Rules. Name must not be identical or almost identical to any entity currently registered in the ADGM or any other relevant jurisdiction unless otherwise approved by ADGM

Is the appointment of a Data Protection Officer applicable to all entities in ADGM?

Controllers and processors must appoint a DPO where:

the processing is carried out by a public authority, except for courts acting in their judicial capacity;
the core activities of the controller or the processor consist of processing operations which, by virtue of their nature, scope and purposes, require regular and systematic monitoring of data subjects on a large scale; or
the core activities of the controller or the processor consist of processing on a large scale of special categories of personal data

What types of office spaces are available for an ADGM company on Al Reem Island? Is having a physical space mandatory in ADGM for setting up?

ADGM provides a range of office space options, including serviced offices, co- working spaces, and dedicated office suites, catering to the diverse needs of businesses. These spaces vary in size, layout, and amenities to accommodate different company sizes and requirements.

ADGM companies must take an office space either in Al Maryah Island or Al Reem Island unless they are exempted from such an office requirement based on their entity and business type.

Are AML rules applicable to all entities in ADGM?

ADGM AML rules are mandatory for Authorised Person, DNFBPs, NPOs and Representative offices . However, all ADGM entities must adhere to the AML regulations.

Can a filing time extension be requested?

Companies should take appropriate measures to ensure that the filing date is identified, and the filing is prepared and submitted within the prescribed period. However, if due to unforeseen circumstances or an exceptional reason the filing is delayed, a company may request the Registration Authority for the extension period.

The extension request should include all relevant information including an explanation of why the company cannot comply with the prescribed period for filing and the length of the extension being requested. Depending on the reasons and circumstances, the Registration Authority may require documentary evidence supporting the claims to be provided.

If the request for an extension is not granted and a company fails to submit the filing on time, the company will be liable to the relevant late filing penalty. Time taken by the Registration Authority to consider an extension request that is not granted shall not be a valid reason for failing to meet the original deadline for filing. The ultimate discretion of whether or not to grant extension lies with ADGM registration Authority.

What ensues when a fine is levied?

When a company fails to deliver the accounts to the Registration Authority on time, a late filing penalty is imposed automatically.

The penalty imposed will generally be determined in accordance with ADGM Companies Regulations and the Schedule of Contraventions.

In case of online submission of filing via Registration Authority’s online portal, the penalty notice will be issued electronically by the portal.

In case of hard copy submission, the Registration Authority will issue a penalty notice to the company’s registered office address.

Can the fine levied be appealed?

An appeal can be made against a late filing penalty only if the company demonstrates that the circumstances are exceptional or that the fine imposed was incorrect.

The Registration Authority has very limited discretion not to collect a fine. Exceptional circumstances include unforeseen and catastrophic events that render a company unable to submit a filing.

A company should take appropriate measures to ensure that its accounts are ordinarily prepared (and audited, if required) and submitted to the Registration Authority within the prescribed period.

How to hand over annual accounts to the Registration Authority?

Annual Accounts are submitted through ADGM Online Registry Solution portal .available at www.registration.adgm.com

Is the appointment of a Director mandatory in ADGM? What are the requirements?

A private company must have at least one director who is a natural person. A minimum of 2 directors are required in the case of a public company. Directors must be 18 years of age, must not be disqualified from acting as a director and must not be an undischarged bankrupt.

Is the appointment of an authorized signatory mandatory?

Yes, this is mandatory. At least one of the authorized signatories must be a UAE resident /GCC national. Emirates ID, Passport and Visa copy must be provided to ADGM during Incorporation Application. The appointment must be passed by a resolution of the incorporating shareholder/s.

Who is UBO?

The definition of a beneficial owner, in relation to a company or limited liability partnership (LLP), provides for a two-fold test for identifying a beneficial owner, which is as follows:

Any person:
1. who has 25% or more direct or indirect ownership or voting rights in the company or LLP;
2. irrespective of whether a natural person is identified under subparagraph (a) above, any natural person who controls the company or LLP;
If no one is identified under paragraph 1. above, any person who holds the position of officer of the company or LLP (only applies if no beneficial owner is identified under tests 1.a) or b)).

In case of Foundations, Trusts and Partnerships, there are different criteria for determining the UBOs.

How to prevent paying a fine?

Penalties for delayed filing can be avoided by ensuring that when a filing obligation is due, all the process must be in place and filing is prepared and submitted to the relevant Registrar within the specified filing period.

What if a filing is returned?

The filings which do not meet the requirements of the Companies Regulations of the Registration Authority will be returned back for correction. For example, if the accounts are not signed by a director, or accompanied by a director’s report (if applicable).

A late filing penalty will be imposed if the filing is resubmitted after the impending date of the original filing.

What if the fine goes unsettled?

The Registration Authority treats the fine as a debt due to it, if all or any of the amount of a fine is outstanding at the end of the deadline for payment as specified in the notice.

The Registration Authority may apply to the ADGM Courts for recovery of the debt.

How to make an appeal?

An appeal must be made in writing and the letter should be addressed to the Monitoring & Enforcement Department.

The letter should include all the details of the exceptional circumstances and reasons as to why the Registration Authority should consider the appeal. The letter must be duly stamped and signed by a director or authorized signatory of the company and should be submitted by email tomonitoring@adgm.com.

What are the lease terms and costs associated with office spaces in ADGM?

Lease terms and costs vary depending on factors such as the size of the office space, location within ADGM, amenities provided, and market conditions. Whether seeking a premium location with extensive amenities or a more cost-effective solution without compromising on quality, ADGM offers a spectrum of options to suit diverse business requirements. Businesses can negotiate lease terms tailored to their budget and long-term objectives, empowering them to secure spaces that not only meet their immediate needs but also facilitate future growth and success.

Reach out to us for all your inquiries in and around ADGM. Rest assured, our dynamic team at MS provides you with the best solutions for financial and advisory services including compliance to tax, accounting and bookkeeping.

Get the Right Guidance.

Reach out to us for all your inquiries in and around ADGM. Rest assured, our dynamic team at MS provides you with the best solutions, including assistance with ADGM incorporation and compliance in the UAE.

Get the Right Guidance.