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Setting Up Of ADGM Funds

Overview - ADGM Funds

The ADGM has put in place a world-class funds framework that is based on Common Law. It offers fund managers an efficient, zero-tax rate business environment operating to international regulatory standards. ADGM funds can be set up with minimum capital requirements, one of the lowest available compared to any other regime globally. There are no remuneration restrictions on fund managers.

What’s on Offer? – For Fund Managers

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  • Legal certainty – direct application of Common Law
  • 0% tax for corporates and individuals
  • Effective and cost-effective authorization
  • Low minimum capital requirements
  • No remuneration restrictions
  • Flexible arrangements for delegation of duties
  • Access to world-class infrastructure & skilled workforce
  • Ability of foreign fund managers to establish & manage ADGM funds

Authorization of ADGM Fund Managers

The FSRA applies a risk-based assessment to the authorization criteria, with a less rigorous and risk-proportionate approach applied to a fund manager’s application when non-retail funds are being managed, in comparison to a more rigorous approach that is applied to the authorization of a ADGM fund manager seeking to manage and sell Public Funds.

What are the Benefits?

The Fund that is set up in ADGM will enjoy several benefits. Many of these are not available in other jurisdictions.

  • 0% tax on fund vehicles
  • Efficient and cost-effective establishment process
  • No maximum investor restrictions
  • No minimum AUM requirements
  • Master/Feeder/Umbrella fund structures available
  • Access to world-class service providers
  • Can use the office/registered address of the fund manager
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Types of ADGM funds

Type of funds that can be set up in ADGM are as follows:

Exempt Funds

  • Professional clients only
  • US$ 50,000 minimum investment
  • Private placement
  • Reduced regulatory requirements for fund manager
  • Notification to FSRA

Qualified Investor Funds

  • Sophisticated Professional clients only
  • US$ 500,000 minimum investment
  • Private placement
  • Minimal regulatory requirements for fund manager
  • Notification to FSRA

Public Funds

  • All client types, including retail clients
  • No minimum investment requirements
  • Increased level of regulatory oversight
  • Restricted investment/borrowing powers
  • Registration with FSRA

How Can We Help?

  • Advice on fund structuring
  • Fund documentation, including Private Placement Memorandums
  • Fund authorizations and setups
  • Fund accounting and audit
  • Fund compliance

Why KPI as your Trusted Advisor?

For a successful application of your Fund set up in ADGM, you will need an experienced consultant.
Here is what we bring to the table for your Fund setup

  • We helped authorize the first Foreign Fund Manager at the ADGM
  • We have advised on fund structures in multiple offshore & onshore jurisdictions
  • Our strong background in finance helps provide bespoke recommendations
  • We have been at the ADGM since it’s inception - the 1st entity to register at the centre.

Frequently Asked Questions

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With over 30 years of hard work and commitment to making a real difference, KPI has grown to serve customers from a variety of business sectors and industries across Middle East.

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