SPV SETUP
GULF CORPORATE SERVICES
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An introduction to the ADGM SPV
Why choose an ADGM SPV?
Establishing an ADGM SPV as the holding company presents an enticing opportunity for aspiring entrepreneurs and their backers.
The SPV can be owned or controlled by a UAE or GCC based private company, family office or individual. The SPV can hold assets that are located in the UAE or the GCC Region (this can be shares in underlying companies in the UAE or Saudi Arabia or anywhere else in the GCC). The SPV facilitates transactions connected, or provides real or economic benefit, to the UAE.
The founders can reap the rewards of ADGM’s streamlined and
cost-effective incorporation process, which ensures a swift and
hassle-free experience. At the same time, investors are drawn to ADGM’s regulatory framework, which offers them flexibility in investments and robust legal safeguards. Prior to embarking on the incorporation journey of your ADGM SPV through GCS, take a deep dive into the exclusive advantages that an ADGM SPV brings to the table.
Benefits of ADGM SPVs:
01
Ease of incorporation and administration:
The incorporation application, renewal filings and ongoing administration of an ADGM SPV is entirely digital and documents can be signed digitally. There are minimal annual obligations with no need to hold an annual shareholder meeting unless requested by the shareholders and reduced financial reporting requirements.
02
Lack of Restrictions:
There is no minimum share capital and no maximum number of shares or shareholders for an ADGM SPV. There are no restrictions on the nationality of share ownership. An SPVs Articles of Association can be amended to include multiple classes of shares (voting, non-voting, preferred) allowing for shares with different voting, dividend and distribution rights.
03
Cost Savings:
An ADGM SPV does not need to rent physical office space and shareholder documents do not need to be attested and legalised. There is no requirement for any parties to be physically present or in the UAE. These factors represent significant cost savings for founders.
04
Attractiveness for investment:
ADGM SPVs can issue convertibles such as SAFEs and convertible notes and ADGM recognises and enforces important investor and governance rights. This makes an ADGM SPV a strong launchpad for accessing capital from angel investors and VCs who can invest with confidence knowing that their investment is legally protected.