Abu Dhabi Global Market (ADGM) stands out among the most regulated financial free zones in the Middle East region. There have been a series of new rules, approaches to enforcement, and requirements for auditing, which have radically altered the nature of operations within the jurisdiction. The understanding of these changes has become essential for those analyzing the process of ADGM company formation in the UAE.

Reasons for the Increased Regulation within ADGM
Following the release of the Enforcement Strategy and Regulatory Priorities for 2024-2025 published by ADGM Registration Authority (RA) in July 2024, it became evident that an active approach to regulatory compliance should be pursued. In general, it includes such priorities as:

• Accuracy and timely submission of annual filings and renewal of licenses
• Ensuring high-quality auditing and reporting
• Risk-based supervision of all ADGM-licensed companies
• Beneficial ownership and reporting of ESG (environmental, social, and governance) information
• Discovery of unlicensed operations or operations under invalid license

It is critical for organizations conducting business through the process of ADGM company formation in UAE to realize that complacency is unacceptable in the current environment.

Three Major Regulations for Each ADGM Company
Employment Regulations 2024 (Effective April 2025) Replacing the 2019 regulation, it officially acknowledges remote and hybrid working arrangements, provides for 65 days of paid maternity leave, sets anti-discrimination requirements and mandates the provision of health insurance.
For ADGM company setup services in Abu Dhabi, HR compliance is no longer optional.

Whistle-blower Protection Regulations 2024
By 31 May 2025, all ADGM companies were supposed to have whistleblowing policies set up including mechanisms of independent investigation and reporting, as well as keeping relevant records for at least six years. Failure to do so may result in license suspension and fines.

Administrative Regulations 2025
A set of new rules for investigation and enforcement actions now applies to each business entity in ADGM. This means that for all those using ADGM company formation services UAE, every stage of their existence becomes subject to certain legal measures.

Audit & Accounting Compliance: A Fundamental Requirement
The ADGM authorities take audits and regulatory compliance very seriously. Recent enforcement actions have highlighted the importance of maintaining accurate records, meeting reporting obligations, and adhering to applicable regulatory requirements.

• Keep accounting records for a period of no less than ten years
• Submit annual financial reports in accordance with IFRS to the RA
• Employ an auditor who should be officially registered with ADGM

For every business planning to incorporate a company in ADGM, auditing is the key starting point.

ADGM License Cost in 2025 - What Has Changed?
Effective 1 January 2025, ADGM significantly revised its license fees, making ADGM business setup UAE more cost-competitive:

License Fees and Annual Renewal Charges

• Non-Financial (Category B)
  • Registration Fee (2024): USD 10,000
  • Registration Fee (2025): USD 5,800
  • Annual Renewal: USD 5,300
• Retail (Category C)
  • Registration Fee (2024): USD 6,000
  • Registration Fee (2025): USD 2,800
  • Annual Renewal: USD 2,300
• Financial (Category A)
  • Registration Fee (2024): USD 15,000+
  • Registration Fee (2025): USD 17,000
  • Annual Renewal: USD 16,500
• Tech Start-up
  • Registration Fee (2024): USD 1,500
  • Registration Fee (2025): USD 1,500
  • Annual Renewal: USD 1,500
• SPV
• Registration Fee (2024): USD 1,900
• Registration Fee (2025): USD 1,900
• Annual Renewal: USD 1,400

Total minimum commercial setup costs typically start from AED 40,000 - 50,000. While the reduced ADGM license cost is welcome, compliance obligations have grown in parallel.

Why Professional Help Matters
ADGM regulations are quite complex and ever-changing. Here lies the importance of consulting companies in the UAE. Businesses considering ADGM establishment should seek appropriate professional guidance to navigate legal, regulatory, and compliance requirements effectively.
At Alliott UAE, we assist clients by providing guidance on regulatory, accounting, tax, audit, and compliance matters related to operating within ADGM. Where required, we work alongside specialist advisers to help clients address specific company formation and regulatory requirements.

Conclusion
The development of ADGM itself is a guarantee of its excellence. Businesses that truly want to establish themselves in the Abu Dhabi Global Market must take the step towards complying with the ADGM's regulations. With an experienced partner, this can be done successfully.
If you are considering establishing a presence in ADGM or would like guidance on compliance requirements, contact Alliott UAE to discuss how we can assist.