13 Jun Category 3C License in ADGM (Abu Dhabi Global Market) Free Zone
This article is about obtaining a category 3C license in ADGM (Abu Dhabi Global Market) Free Zone.
The Abu Dhabi Global Market (ADGM) is a leading international financial center, attracting businesses worldwide. To facilitate a wide range of financial activities, ADGM offers various license categories, each tailored to specific sectors and services.
One such license is the Category 3C license, which provides a gateway for financial service providers to operate in ADGM. This article explores the significance of the Category 3C license, its benefits, and the process of obtaining it.
The Category 3C license is a financial services license designed for entities that manage collective funds or assets within ADGM. It covers activities such as fund management and advisory services.
Benefits of the Category 3C License in ADGM
The Abu Dhabi government has actively positioned ADGM as a leading financial hub across the GCC region. To promote ADGM, they have promoted business-friendly policies and offered attractive incentives to attract local and international businesses. Here are some of the key reasons to get your category 3C license from ADGM:
- Holding a Category 3C license in ADGM provides financial service providers access to international markets. This enables you to offer investment products and services to clients across different jurisdictions, expanding your reach and client base.
- ADGM’s Financial Services Regulatory Authority (FSRA) ensures a robust regulatory framework aligned with international standards. In addition, holding a Category 3C license demonstrates a commitment to compliance and strengthens the credibility and trustworthiness of the licensed entity.
- ADGM offers attractive tax incentives to licensed entities, including corporate and capital gains tax exemptions. This favorable tax environment enhances the financial viability and competitiveness of firms operating under the Category 3C license.
- ADGM places a strong emphasis on investor protection. Accordingly, entities under the Category 3C license must adhere to strict client money segregation and disclosure requirements, ensuring transparency and safeguarding investor interests.
Process for Obtaining ADGM License
While ADGM aspires to make the incorporation process as simple as possible. Although getting a category 3C license is a bit more complex due to safeguards built to protect consumers. Here is a rough outline of the process for getting your license in ADGM:
- Eligibility Assessment:
Prospective applicants must undergo an eligibility assessment to determine their suitability for the Category 3C license. This involves assessing financial standing, experience, and track record.
- Application Submission:
The applicant can submit a comprehensive application to the FSRA once the eligibility assessment is successful. The application should include detailed information about the entity, its shareholders, directors, key personnel, and compliance with relevant regulatory requirements.
- Compliance and Due Diligence:
The FSRA thoroughly reviews the application, including due diligence checks on key individuals and shareholders. The applicant must demonstrate compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
- Capital Requirements:
The applicant must meet the minimum capital requirements specified by the FSRA for a Category 3C license. The capital requirement ensures financial stability and sufficient resources for licensed activities.
- Regulatory Approval and Ongoing Obligations:
Upon satisfying the FSRA’s requirements, the applicant will receive the Category 3C license. Licensed entities must continue to meet ongoing regulatory obligations, including reporting, compliance, risk management, and periodic inspections by the FSRA.
Category 3C License in Abu Dhabi Global Market
The Category 3C license in ADGM (Abu Dhabi Global Market) offers financial service providers a gateway to operate in a dynamic and internationally recognized financial center. With its access to global markets, favorable regulatory environment, tax advantages, and investor protection measures, the Category 3C license presents significant opportunities for entities engaged in asset management, fund management, and advisory services.
By successfully obtaining and maintaining a Category 3C license, firms can enhance their market presence, attract clients, and contribute to the growth and development of ADGM as a thriving financial hub. To learn more about the process of opening your new venture within ADGM, contact one of our consultants for a free consultation.
You might also want to reach out about the Category 4 License in ADGM and The Benefits of Obtaining a DIFC Category 4 License in UAE.