The Abu Dhabi Global Market (ADGM) Registration Authority announced new regulations on business licensing for 2025 on Thursday, introducing the “Licensing Conditions Rules” and the “Regulated Activities Rules.” These updates aim to strengthen the regulatory framework in the ADGM as follows:
· Introduction of a new regulated activity focused on tax services.
· New requirements for applicants seeking licenses for legal and tax services.
· Definition of ongoing licensing conditions for authorized legal and tax service providers.
· Enhancement of governance standards for licensed corporate service providers through mandatory conflict of interest management policies.
Key highlights of the amendments include:
· Legal service providers: Applicants must appoint a managing partner (or an equivalent), possessing a minimum of eight years of professional experience post-qualification. Licensed companies are required to maintain a registered office in the ADGM, hold valid professional indemnity insurance, submit annual returns to the registration authority, and adhere to specified principles.
· Tax service providers: Applicants for licensing must ensure that qualified personnel make up at least half of their senior management and must have valid professional indemnity insurance, along with compliance to specific principles.
· Corporate service providers: Licensed companies are mandated to establish policies and procedures to manage conflicts of interest.
The new licensing condition regulations will replace the current regulatory framework and will take effect immediately for new applicants and licensed service providers. For existing license holders, a specific transition timeline has been established to allow sufficient time for compliance with the new requirements.
Complete versions of the amended rules are publicly available and can be accessed through:
· Business Licensing Regulations (Licensing Conditions and Branch Registration) 2025 (A).
· Business Licensing Regulations (Regulated Activities) 2025.