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ADGM Company Regulations: What Your Business Must Follow in 2026

ADGM Company Regulations: What Your Business Must Follow in 2026
  • Ruth Dsouza

    Author

    Ruth Dsouza Prabhu is a content developer passionate about turning ideas into clear, compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she makes complex business topics understandable for UAE entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is both credible and impactful. Ruth’s articles empower business owners to gain actionable insights, make informed decisions, and confidently navigate their entrepreneurial journey.

  • Shahla Mohammad

    Reviewer

    Shahla Mohammad is a Senior Accountant at Osome, bringing extensive experience in financial reporting, bookkeeping, and compliance. She supports UAE businesses with accurate financial management and clear guidance on regulatory requirements. With a detail-oriented and practical approach, Shahla helps entrepreneurs maintain strong financial foundations, ensure compliance, and make informed decisions to support sustainable growth.

The Abu Dhabi Global Market (ADGM) company regulations set the rules every business in ADGM follows, from how it is formed to what it files each year. ADGM writes its own civil and commercial laws, and federal tax and criminal law still apply alongside them. This guide explains how the framework fits together and what you must file, keep and report in 2026.

 Key Takeaways

  • ADGM applies English common law directly and writes its own company, employment and data protection rules, while UAE federal tax, criminal and anti-money laundering laws still apply.
  • Every ADGM company renews its licence, files an annual return and annual accounts, and keeps its registers and beneficial ownership record up to date.
  • An ADGM licence does not register you for Corporate Tax, and the 0% rate depends on meeting the Qualifying Free Zone Person conditions every year.
  • ADGM updates its rules often. Recent changes include new employment rules in force since April 2025 and a ban on bearer shares from May 2026.

What Are the ADGM Company Regulations?

The ADGM company regulations are the Companies Regulations 2020, the main law that governs how companies are formed, run and closed in ADGM. ADGM's Board of Directors enacted them on 29 April 2020 under Abu Dhabi Law No. 4 of 2013, replacing the 2015 version. They are modelled closely on UK company law.

The Registration Authority (RA) administers them and has amended them several times, most recently in May 2026. In everyday use, "ADGM regulations" also covers the rules that sit alongside them on licensing, employment, data protection, beneficial ownership and insolvency. Together, they apply to every company licensed in ADGM, whatever its size.

How Is ADGM's Legal Framework Built?

ADGM's laws sit in layers. Federal and Abu Dhabi law created ADGM and set its limits, and ADGM's own regulations, rules and guidance fill in the detail. Knowing which layer a rule comes from tells you who enforces it and where to check when it changes.

Where do ADGM's laws come from?

Each layer builds on the one above it:

  1. Federal law: Federal Law No. 8 of 2004 on financial free zones, and Federal Decree No. 15 of 2013, which established ADGM
  2. Abu Dhabi law: Abu Dhabi Law No. 4 of 2013, which sets out ADGM's governance and powers
  3. ADGM regulations: laws enacted by ADGM's Board, such as the Companies Regulations 2020
  4. Rules: detailed requirements made under each regulation, such as the conditions attached to a licence
  5. Guidance: notes from the RA, the Financial Services Regulatory Authority (FSRA) and ADGM Courts on how the rules apply

Guidance explains how a rule applies in practice. Where guidance and a regulation differ, the regulation wins.

Why does ADGM apply English common law?

The Application of English Law Regulations 2015 make English common law, including the rules of equity, part of ADGM law. It applies as it stands from time to time, so new English case law can guide ADGM's courts as it develops. ADGM was the first jurisdiction in the region to take this approach, which Singapore and Hong Kong also follow.

For your business, contracts, company disputes and directors' duties follow principles that international investors, banks and lawyers already know. Where an ADGM regulation covers a point, the regulation takes priority over the common law.

Which UAE federal laws still apply?

ADGM's own laws replace federal civil and commercial law inside the zone. Other federal laws still apply, including Corporate Tax, Value Added Tax (VAT), criminal law, anti-money laundering law and immigration law. Visas for your staff therefore still go through federal authorities.

The federal Commercial Companies Law, Decree-Law No. 32 of 2021, does not govern ADGM companies. Your company follows the Companies Regulations instead. Other free zones for businesses in the UAE work the same way, with the zone's own rules covering company matters and federal law covering tax.

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Who Enforces the ADGM Regulations?

Three independent authorities enforce ADGM's rules, and data protection has its own office. Most companies deal mainly with the RA, from licensing through to annual filings. This is what each one covers:

Authority
What it enforces
When you deal with it
RAThe Companies Regulations, commercial licensing, beneficial ownership, and anti-money laundering (AML) supervision of designated non-financial businessesLicensing, renewals, annual filings and company changes
FSRAFinancial services rules, and AML rules for financial firmsBefore and after you offer regulated financial services
Office of Data ProtectionThe Data Protection Regulations 2021Whenever you process personal data, including staff records
ADGM CourtsCivil and commercial disputes, including employment claimsWhen a dispute goes to court, or a contract chooses ADGM Courts

If your activity is regulated, the FSRA's rulebooks apply on top of the rules in this guide. The RA also issues circulars to remind companies of specific duties, and these often carry a deadline.

What Do the Companies Regulations Require?

The Companies Regulations cover a company's whole life, from formation to closure. Four areas matter most day to day: your constitution, your directors' duties, the records you keep and your annual accounts. Each one comes with its own filings, and the RA checks them.

What goes into a company's constitution?

Every ADGM company has articles of association, which set out how it is run and what rights its shares carry. You can adopt ADGM's model articles, amend them or draft your own. Most founders use a private company limited by shares, which needs only one shareholder.

Your articles can create more than one class of share, each with its own voting or dividend rights. Since 1 May 2026, companies can no longer issue bearer shares, which belong to whoever holds the certificate. Every share must now be registered to a named owner.

What are a director's duties?

Directors owe seven general duties, modelled on UK company law. A director must:

  • Act within the powers the articles give them
  • Promote the success of the company
  • Exercise independent judgment
  • Exercise reasonable care, skill and diligence
  • Avoid conflicts of interest
  • Refuse benefits from third parties
  • Declare an interest in any proposed transaction

These duties apply equally to executive, non-executive and nominee directors. A person whose instructions the board usually follows, known as a shadow director, can be treated as a director. The Registrar can also seek to disqualify directors for persistent breaches.

Which registers and records must you keep?

Your company keeps statutory registers of its members, directors and charges, plus a record of its beneficial owners. Each register must stay current. Most changes also need a filing with the Registrar, such as appointing a director or allotting new shares.

Accounting records must be kept for at least 10 years. They should show your transactions and financial position at any point in the year, so a catch-up at year end is rarely enough. Proper bookkeeping systems make that far easier to keep up.

What are the annual accounts and audit rules?

Every company files annual accounts with the RA through the Online Registry Solution. After the first year, they are due within nine months of the accounting reference date, which is usually your financial year end. The first deadline depends on whether your first financial year is shorter or longer than 12 months.

Accounts must be audited by an ADGM-registered auditor unless the company qualifies for an exemption. A small standalone company qualifies if its turnover is no more than USD 13.5 million and it has no more than 35 employees. If you rely on the 0% Corporate Tax rate, you need audited accounts whatever your size.

Tip

Close your books every month. Using accounting services from your first month keeps your records ready for audit and gives your auditor clean figures well before the nine-month filing deadline.

Which Other ADGM Regulations Apply to Your Company?

Beyond the Companies Regulations, a set of separate regulations covers licensing, ownership, data, staff and financial crime. Most apply to every company, and a few depend on your size or activity. This is what each one asks of you:

Regulation
What it requires
Who it applies to
Commercial Licensing Regulations 2015A licence for each activity you carry out, renewed every year, plus the ongoing conditions in the Conditions of Licence Rules 2026All licensed companies
Beneficial Ownership and Control Regulations 2022A record of every individual who owns or controls 25% or more, and of any nominee directors, filed with the RegistrarCompanies, limited liability partnerships, foundations and trustees
Data Protection Regulations 2021Lawful handling of personal data, an annual data protection fee, and a Data Protection Officer (DPO) for high-risk processingAny company that processes personal data
Employment Regulations 2024Written contracts, a work permit before the start date, wages within 14 days of each pay period and final pay within 21 days of exitAll employers
Whistleblower Protection Regulations 2024Safe ways for staff to raise concerns, required since 31 May 2025All entities, with written policies for regulated firms and large establishments
AML rulesA risk assessment, customer checks, registration on the goAML reporting system and suspicious activity reportsFinancial firms and designated non-financial businesses, such as real estate agents, accountants and lawyers
Insolvency Regulations 2022Rules for administration, liquidation and company arrangements, including director liability for wrongful tradingAll companies
Environmental, social and governance (ESG) Disclosures FrameworkESG disclosures from the third year after incorporationCompanies with turnover above USD 68 million, and FSRA asset managers above USD 6 billion in assets. Voluntary for all others.

Employment rules are where small companies most often slip. ADGM employers sit outside the federal Wage Protection System (WPS) and follow these rules instead. Late final pay carries a penalty of one day's wage for each day of delay, up to six months' pay, and every employee needs health insurance.

How Does Corporate Tax Apply to ADGM Companies?

ADGM companies sit inside the UAE Corporate Tax system, whatever their activity. The 0% rate is available to companies that meet a strict set of conditions and keep meeting them each year. Registration and filing with the tax authority are separate from your ADGM licence, and VAT has its own rules.

What makes you a Qualifying Free Zone Person?

A Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on the rest, under the UAE's free zone Corporate Tax rules. To qualify, your company must:

  • keep adequate substance in the free zone, with staff, assets and spending to match its activity
  • earn qualifying income from the activities listed in Ministerial Decision No. 229 of 2025
  • keep non-qualifying revenue below 5% of total revenue or AED 5 million, whichever is lower
  • follow transfer pricing rules on deals with related parties
  • prepare audited financial statements
  • not elect to pay the standard rate

Fail any condition and you lose QFZP status for that tax period and the four that follow.

How do registration and filing work?

Your ADGM licence does not register you with the Federal Tax Authority (FTA). Complete corporate tax registration separately. A free zone company has three months from incorporation to register, even if it has not started trading.

You then file a Corporate Tax return within nine months of the end of each tax period, even when no tax is due. A QFZP cannot also claim Small Business Relief, which is for businesses with revenue of AED 3 million or less. ADGM companies can also apply for a UAE Tax Residency Certificate, subject to FTA criteria.

Do VAT and economic substance rules apply?

VAT applies to ADGM companies, and the old economic substance rules do not. ADGM is not a VAT Designated Zone, so the standard rules apply to your supplies. You must register once taxable supplies pass AED 375,000 over 12 months, as explained in this guide to VAT registration in the UAE.

The standalone Economic Substance Regulations no longer apply. Cabinet Decision No. 98 of 2024 removed them for financial years starting on or after 1 January 2023. Substance is now tested through the QFZP conditions instead.

Tip

Map each income stream against the qualifying activities before your first tax period ends. Getting corporate tax filing support early means your QFZP position, transfer pricing records and audited accounts all line up when the return is due.

What Changed in ADGM Regulations in 2025 and 2026?

ADGM revises its rules several times a year, usually after a public consultation. Most changes take effect on publication, so check for updates before each renewal or filing. These are the changes from 2025 and 2026 that affect most companies:

Date
What changed
4 June 2026The RA updated its beneficial ownership guidance
1 May 2026Bearer shares were banned, some filing deadlines were clarified and the Conditions of Licence Rules 2026 replaced the 2025 rules
16 October 2025Tax services became a licensed activity, with new conditions for legal and tax service providers and conflict-of-interest policies for company service providers
August 2025The RA issued guidance on accounts and audit for QFZPs
31 May 2025Whistleblowing arrangements became due for all ADGM entities
1 April 2025The Employment Regulations 2024 came into force, replacing the 2019 rules
24 February 2025ADGM completed its move onto Al Reem Island, adding over 1,100 entities

What Happens If You Do Not Comply?

The RA can fine a company and its officers for breaching the regulations, and late filings attract penalties. Serious or repeated breaches can lead to the company being struck off the register or its directors being disqualified.

ADGM publishes its enforcement actions. In 2025, the FSRA fined 23 entities for breaching international tax reporting rules, and the RA asked 155 entities to update their beneficial ownership records. In an earlier case, the RA fined a director personally after two passive Special Purpose Vehicles he controlled managed residential property and he gave false information when applying to close them.

Most ADGM penalties trace back to small gaps: a late annual return, an unfiled director change or an out-of-date ownership record. Put every RA deadline in one compliance calendar, with a named owner for each, and review it at the start of every quarter.
Shahla Mohammad

Senior Accountant

How Osome Can Help

ADGM's rules depend on records that stay accurate all year. Annual accounts, the audit, Corporate Tax returns, VAT and a QFZP position that holds up all rely on clean figures. For startups, holding structures and growing teams in ADGM, that work often falls to a founder who already has a business to run.

Osome handles it for you. A dedicated accountant manages your bookkeeping, financial statements, VAT and Corporate Tax filing, and our software keeps every record and deadline in one place. Your company stays ready for the RA, your auditor and the FTA.

Summary

Most companies set up in ADGM for one purpose and grow into others. Before your next licence renewal, compare what the company actually does with its licensed activities, its articles and its QFZP position.

Then check who your beneficial owners are today, and whether new staff or new data bring the Employment or Data Protection Regulations into play. Closing those gaps at renewal costs far less than explaining them to the Registrar later.

Disclaimer: All figures and pricing in this article are as close to accurate as possible as of October 2026. Fees, rules and requirements change, so please carry out your own due diligence before making any decisions.

Ruth DsouzaAuthor

Ruth Dsouza Prabhu is a content developer passionate about turning ideas into clear, compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she makes complex business topics understandable for UAE entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is both credible and impactful. Ruth’s articles empower business owners to gain actionable insights, make informed decisions, and confidently navigate their entrepreneurial journey.

FAQ

  • Can you get more time to file annual accounts?

    Yes, in some cases. The Registrar can approve an extension for a special reason, as long as you apply before the filing deadline passes. Give a clear reason and apply well ahead of the due date. An extension from the RA does not move your Corporate Tax deadlines, which run separately with the FTA.

  • Can a contract with an ADGM company choose ADGM Courts?

    Yes. Since a 2020 amendment to ADGM's founding law, parties can agree in writing to take their disputes to ADGM Courts, even if they have no other link to ADGM. The agreement can be made before or after a dispute arises. ADGM Courts work in English and apply common law, which many international parties prefer.

  • Can ADGM employees work remotely?

    Yes. The Employment Regulations 2024 let an ADGM employer bring remote staff under ADGM's employment rules through a written agreement. Unless you agree otherwise, the employer must provide and maintain the equipment the employee needs. Visa and work permit rules still apply to anyone working in the UAE, so check those before you hire.

  • Do ADGM regulations apply to a branch of a foreign company?

    Yes, in part. A foreign company can register a branch in ADGM, which needs a commercial licence and follows ADGM's licensing rules. The branch must keep accounting records and give the RA its parent company's financial reports. The beneficial ownership regulations do not apply to branches of foreign companies.

  • Do businesses on Al Reem Island follow ADGM regulations?

    Yes. ADGM's jurisdiction now covers Al Reem Island as well as Al Maryah Island. Businesses based on Al Reem need an ADGM licence and follow the same regulations as any other ADGM company. Some entities kept certain registrations under a dual licence with the Abu Dhabi Department of Economic Development, so confirm your own licence terms with the RA.

  • How do you keep up with changes to ADGM regulations?

    ADGM publishes every new regulation, amendment and consultation paper on its website, along with consolidated versions that show each change. The RA also issues circulars and sets out its regulatory priorities for the years ahead. Check these before each licence renewal, and ask your accountant or service provider to flag changes that affect your filings.

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