#adgmtechstartuplicense

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3 Reasons Why You Should Get an ADGM Tech Startup License - 10 Leaves

Working on innovation has never been easy. It takes a great sense of ambition, responsibility, and willpower to decide to become an entrepreneur?—?especially in highly competitive and fast-paced industries such as the tech industry.

As such, your top priority is to find a place that knows how to help you grow your business. A location that offers good licensing options, stable infrastructure, and a vibrant community. For all these requirements, doing business in the ADGM is a top consideration especially if you are working on developing a tech.

The benefits of doing business in the ADGM include the ADGM tech startup license, a strong regulatory environment, and a community of fellow entrepreneurs as well as industry experts who know how to help you get your solutions up and running.

Let’s take a look at those benefits individually:

1. The ADGM Tech Startup License: At a nominal cost of AED2,570, entrepreneurs can already avail of an ADGM tech startup license. This license is highly flexible, offers four residential visas, and meets the requirement for a registered address with just $700.

The ADGM will nurture the new businesses through their lifecycle, from seed capital to listing on a stock exchange. Unlike the typical operating license, no physical office space is required for an ADGM tech startup license. You may choose to go for a virtual office space provided by a registered services provider.

This low-cost operating license helps break down the barrier for entry into the tech industry. Entities from all industries are eligible for the license, and will adhere to globally recognised operating standards that the current ADGM funds, multinationals, SMEs, advisers, and other registered entities benefit from.

Getting an ADGM tech startup license is a fairly straightforward process. In fact, from start to finish, there are only six steps you need to take before you’re doing business in the ADGM. However, some of these steps may require in-depth knowledge of local rules and regulations. Thus, it’s important to find a company formation expert to assist you through it.

2. The RegLab:

The Regulatory Laboratory (RegLab), launched in 2016, is the ADGM’s sandbox regime that allows innovators to test and develop their fintech solutions in a specially-tailored regulatory framework. More than seventy local and global fintech applications expressing strong interests in supporting the financial services in Abu Dhabi and the UAE.

If you are interested in joining the RegLab, you must first become authorised by the FSRA. The Lab is open to all participants in the fintech space, from emerging start-ups to existing regulated companies?—?and one of the qualifications is a capability to demonstrate an innovative technological solution that, while currently being developed, is ready for testing.

3. The ADGM Regulatory Framework: Beyond the RegLab, businesses in the ADGM benefit from a stable Regulatory Framework, part of which allows for Private Financing Platforms (PFPs) that let private companies, startups, and SMEs in their early to pre-IPO stage source financing from private and institutional investors.

This is supported by a range of special purpose vehicles (SPVs) that offer flexibility in capital structuring, securitisation, and asset transfer options.

In the future, the hub’s upcoming Belt-and-Road Exchange collaboration with the Shanghai Stock Exchange can also provide more choices for companies to raise capital through IPOs and public markets.

Has the ADGM’s tech startup license won you over? From hereon, there are a number of steps you need to take to make your business a reality. Some of these steps are simple, while others may require more work. Throughout this, it is recommended that you have a company formation expert with you to help you get through the process of setting up as smoothly as possible.