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 5 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.

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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

Considerations of an ADGM Tech
Startup license 

   

Eligibility

Not all startups are eligible for an ADGM Tech Startup license. An application must include a  detailed business plan  demonstrating that the company is a technology-driven startup with an innovative business concept that has the potential to scale, promotes innovation, can be deployed in the UAE, and contributes to the development of the local economy.

Permitted activities

This type of license does not cover regulated financial services, consumer retail or manufacturing.

Types of licenses

There are two types of ADGM Tech Startup licenses available: Seed and Emergent. The license available to a startup will depend on its stage of maturity. The licensing fee payable to ADGM varies depending on the type of license applicable to the startup.

Flexible ownership

There is no minimum share capital and no maximum number of shares or shareholders for an ADGM Tech Startup license. Entrepreneurs from any country can apply for a license, but they will need to appoint at least one signatory who is a UAE Resident or GCC National. Clara can provide nominee signatory services.

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.

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Journey

Process of forming an ADGM Tech Startup

01

/12

Provide information

Start by adding some basic details on the company, 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? You should specify it if it’s not a commonly known English word, or if it’s a shortened word, an abbreviation or an acronym. 
  • Providing an Arabic translation is optional.
  • If the company is affiliated with another company of the same name, you will need to add their commercial license.

04

/12

Add details on assets & revenue

We need a bit more details if the company will have shares in any incorporated companies or in any companies not yet formed.

05

/12

Nominate ADGM authorized signatory

Appoint eligible stakeholder as ADGM authorized signatory. If there is no eligible stakeholder, you can either use Clara’s Nominee service or add a third party who is not a director or shareholder but they must be UAE Resident or a GCC National.

06

/12

Provide banking and accounting details

In order to form your company, you will need an ADGM-based bank account and also need to provide details of where your accounting records are kept.

07

/12

Nominate data protection contact

Appoint one of the stakeholders as your data protection contact.

08

/12

Use the model of AOA or Upload amended AOA

The model Articles of Association contain the basic requirements. If you want to add additional share classes or include details from a Shareholder’s Agreement, then you will need to supply us with your amended AOA and confirm that they comply with the regulations.

09

/12

Decide share capital

Select your own number of authorized shares, or use Clara’s recommended approach. The authorized share capital for a ADGM company is the maximum amount of share capital that the company is authorized by its shareholders to issue to shareholders. 

10

/12

Pay & Submit

Once all your formation tasks are completed, you can pay and submit your formation to Clara. 

11

/12

Review and Sign

Once submitted, Clara will review and create the incorporation pack for signing within 2-3 business days. 

12

/12

Track progress

After signing the documents, Clara will file the incorporation, completing within 5 to 7 business days. Progress can be tracked on the dashboard. 

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 

Am I eligible for an ADGM Tech Startup?

Not all ventures will be eligible for this type of licence. An application must include a detailed business plan that demonstrates that the company is a technology-driven startup with an innovative business concept for more information click here. 

What is the difference between the Seed and Emergent stages for an ADGM Tech Startup Licence?

  • To be eligible for the Seed Stage licence, your business will need to have less than 10 employees and have operated in the UAE for less than three years.   
  • To be eligible for the Emergent Stage licence, your business will need to have less than 50 employees and have operated in the UAE for less than five years.   

  For more information, click here. 

Can Clara help with visa applications for ADGM companies?  

ADGM operating companies can sponsor employees and Clara can support you with obtaining your visas, for more information click here. 

How long does it take to set up an ADGM Tech startup?

Incorporation of your ADGM TSL can take approximately 5-7 business days from submission to ADGM. Timing depends on the complexity and number of shareholders.  

What information do I need to set up an ADGM Tech startup? 

You will need to provide a detailed business plan, its proposed name, who will be the shareholder(s), director(s) and authorised signatory and provide their identification information and documents. For a full list so you can start preparing now, click here. 

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