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Incorporation • ADGM

ADGM Tech Startup license

This license enables tech companies to establish operations in the UAE quickly and easily.

What is an ADGM Tech Startup
license?

The ADGM Tech Startup license encourages entrepreneurship in the MENA region by removing cost as a barrier to entry for technology-driven startups. Eligible businesses will benefit from the discounted licensing fee structure for up to 3 years of operations in ADGM. Successful applicants will receive an operational license through which they can set up their bank account, commence invoicing activities and apply for employee visas.

Complete the form to receive a quote.

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Benefits

Learn more about the benefits of an ADGM Tech Startup license

Quick online
registration process
Ability to apply for
employment visas
Low annual
fees
Access to entrepreneurship support program
ADGM Tech license

Requirements to set up an ADGM Tech Startup license 

   

Eligibility

The ADGM TSL is sector agnostic and open to
entrepreneurs of all nationalities. However, to be eligible, it must be a technology-driven startup with an innovative business concept that has the potential to scale and can be deployed in the UAE. Before initiating the incorporation process, an online eligibility form with detailed information on the startup must be submitted to ADGM and Hub71 who will determine whether the startup
is eligible for the license.

Authorised Signatory

All ADGM companies must appoint at least one person as the Authorised Signatory who is a GCC National or UAE resident. Clara can provide nominee services for this role for an additional fee. If Clara’s nominee services are used, you must appoint a secondary signatory. This person can be resident anywhere, but they must have entered the UAE in the past 2 years for the purpose of
the security clearance.

Lease

ADGM Tech Startups are not permitted to use Clara’s registered office address and must have their own lease on Al Maryah or Al Reem Island. The minimum requirement is at least one dedicated desk or office space for a 12-month period covering the licensing year. The company will need to provide evidence by providing a copy of the signed lease agreement in the name of the company being formed in ADGM.

Ease of incorporation and administration

The incorporation application, renewal filings and ongoing administration of an ADGM Tech Startup license are entirely digital and documents can be signed online. There are minimal annual obligations with no requirement of an annual shareholder meeting unless requested by the shareholders.

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Save up to $795 when you bundle
your formation with our platform subscription

Make the most of Clara by integrating the formation and management of your
company with our wider company OS. 

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Pre-approval

An online application with pitch deck and startup information must be submitted to Hub71 and ADGM to confirm eligibility. Pre-approval usually takes 15 working days and an endorsement letter will be issued for approved applications.

01

/12

Initial Information

Once pre-approval has been received, login to your Clara profile and
start by adding some basic details on the company being formed, as
well as its shareholders and directors.

02

/12

Upload your business plan approved by ADGM

An application to incorporate an ADGM Tech Startup License requires a detailed business plan. If you don’t have one, you can use Clara’s business plan template.

03

/12

Specify the company name

  • Does your proposed company name have a special meaning? If it is not a commonly known English word, a shortened word, an abbreviation, or an acronym, please specify its meaning. 
  • Providing an Arabic translation is optional. 
  • If the company is affiliated with another company of the same name, you will need to provide their commercial license. 

04

/12

Nominate an ADGM authorized signatory

It is mandatory to appoint at least one person as the ADGM authorised
signatory who is a GCC National or a UAE resident. Clara can provide
nominee services for an additional fee.

05

/12

Financial records

You will need to provide the location of the financial records that are to
be maintained by the SPV. This can be anywhere in the world but will
not be at Clara’s registered office address.

06

/12

Nominate a data protection contact

Appoint one of the stakeholders in your SPV as your data protection
contact. There are no qualifications required and no residency
restrictions.

07

/12

Articles of Association

Adopt the ADGM model Articles of Association or provide your own
amended Articles of Association. Amended Articles should be prepared
in consultation with your legal advisors and a declaration will be signed
as part of the incorporation application that the Articles comply with
ADGM regulations.

08

/12

Share capital

Choose your desired number of authorized shares or follow Clara’s
recommended method. Allocate the number and class of shares being
issued to the shareholders at incorporation and whether these will be
paid or unpaid.

09

/12

Submit and review

After completing all the formations task, submit your incorporation
application to Clara. This will be reviewed by the Clara team and must
be approved by our compliance team.

10

/12

Pay and sign

Clara issues your invoice. After payment and a copy of the signed
lease for your Tech Startup is received by Clara, we will create the
incorporation pack which is sent to all stakeholders for e-signature.

11

/12

Incorporation

After the incorporation documents are signed, Clara will file the
incorporation application with ADGM. The ADGM review time is
typically 7–10 business days. You can track the progress on the Clara
dashboard every step of the way.

12

/12

Track your progress

After you have signed the incorporation documents, Clara will file the incorporation pack, and your new company will be formed within 5–7 business days. You can track the progress on the Clara dashboard every step of the way. 

From operating companies to holding companies and foundations, Clara’s got you covered in ADGM.

Resources & Insights

Stories, updates and resources

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Starting a company is hard enough, but managing legal processes shouldn’t be. With Clara’s dedicated accelerator onboarding solution, companies can get the support and infrastructure they need to efficiently and professionally complete their legal due diligence and finalize an investment.

amal-dokhan Amal Dokhan General Partner MENA, 500 Global
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Clara is a one-stop shop for everything equity related. All our data is safe and securely stored and accurately recorded. And our investors love having direct access. It has saved us countless hours and kept our cap table mistake free.

jessica-anuna Jessica Anuna CEO & Founder, Klasha
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We spend a lot of time educating founders on basic legal concepts: what they need to do for us to invest in them. Clara automates these functions. As Clara’s first institutional investor, we knew intuitively from inception, this company will be a game changer.

vijay-tirathrai Vijay Tirathrai Managing Director, Techstars

You can’t beat Clara’s ESOP functionality. It allows us to grant options to our team in a few clicks while automatically updating our cap table. Truly next level.

michael-hunter Michael Hunter Co-Founder & CEO, Holo
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Founders often struggle with managing their legal function due to lack of expertise and resources. And we’ve seen poor legal structures create hurdles to our investing in otherwise healthy startups. Investors like ourselves love that Clara gives founders the tools they need to establish, grow and scale their startups from day one on a best-practice basis.

shane-shin Shane Shin Founding Partner, Shorooq
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US cap table solutions aren’t tailored to the differentiated needs of international startups. Clara is the only cap table provider we found that had emerging market startups in mind. Add to that all the other things you can do on the Clara platform, from building your ESOP to data room management, and switching was a no brainer.

omar-rifai Omar Rifai Co-founder, GrubTech
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From company formation to maintaining the cap-table, by using Clara founders can digitally form their companies in a range of jurisdictions, create and manage their cap-tables and generate legal documents. Clara is quickly becoming an integral part of the startup software stack.

daniel-dos-reis Daniel Dos Reis Investment Director, Wamda Capital

Clara is a must-have for founders. Not only does it provide all the legal tools you need in a single platform, using Clara also signals to investors that you are a serious startup.

Mazen AlDarrab Founder & CGO, Zid
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IP Assignments, what? I didn’t even know they existed before Clara. For startups, setting up governance, corporate structures, data rooms and fundraising are all hard to get right. Clara’s legalOS is premium. It pays for itself.

zohare-haider Zohare Haider Co-Founder & CEO, Jalebi

Binance uses Clara to incorporate and manage ADGM entities. The team at Clara are extremely efficient and go the extra mile to ensure we always have a smooth experience and meet our deadlines. Top-notch service!

Vishal Sacheendran Head of Strategy and Operations, Binance

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FAQs

Frequently asked questions

We have put together some commonly asked questions 

What information needs to be included in the online pre- approval application?

To complete the online pre-approval application for your ADGM Tech
Startup, you will need to have the following information:

Business Details
• Company name, website and location of headquarters
• Primary Contact Person and Email
• Alternative Email: Include Clara’s email here so we can be included
in correspondence (formations@clara.co)

Business Concept
• Year founded and the stage of product development.
• Detailed description of the problem being solved or the opportunity
being pursued by the company.
• What socio-economic contributions does your company intend to
make to Abu Dhabi?
• What activities / sectors do you plan to engage in under the ADGM
Tech Licence?
• A Pitch Deck will need to be uploaded.

UAE Operations
• Reasons for selecting Abu Dhabi as the location for establishing
this company.
• Planned Location of office (Al Reem or Al Maryah Island).
Details of the Team
• Will at least one of the founders, directors, C-Suite or Senior
Management A Level be relocating to Abu Dhabi?
• Percentage of operating team located in Abu Dhabi (if currently
based in the UAE).

Corporate Structure
• Is your company a subsidiary or even partially owned/ related party
of listed or multi-national companies?
• How is your company funded? Provide details of institutional
investors (if any)

How long will it take for my company to be registered?

From submission of your application to ADGM, the review time is typically 7 – 10 business days. However, the time leading up to submission will depend on several factors outside Clara’s control, including:

  • the pre-approval from Hub71/ADGM,
  • the complexity of the corporate structure and number of shareholders, and
  • how quickly Clara receives documents to complete the
    compliance review.

Delays in incorporation are sometimes the result of delayed security clearance for the individuals appointed as the Authorised Signatories
for the company. This is unfortunately outside Clara and ADGM’s control.

Can I open a bank account for an ADGM Tech Startup?

Yes. Once you have incorporated your company, you can open a bank account. Speak with Clara about how we can support you get a USD
bank account in under 24 hours when your company is managed by Clara. Learn more.

Can I get employee visas with an ADGM Tech Startup?

Yes. The company can take up to 3 employee visas per dedicated desk or 1 visa per 8m 2 of office space taken on Al Maryah or Al Reem Island.
The company can obtain visas for full-time employees; work permits for temporary workers and dependent visas for family members of visa holders. Clara can support you throughout this process. Learn more.

What ongoing costs are there for an ADGM Tech Startup?

There are annual costs for renewing the commercial license with ADGM as well as maintaining a lease on Al Maryah or Al Reem Island. You may also need to engage the services of tax advisors or accountants to assist you with your corporate tax registration and ongoing filings.

If any changes happen to your company (for example, change in director or allotment of shares) or any stakeholder (for example, change of residential address of a director), service fees and filing fees apply to update your company records.

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