{"id":709,"date":"2023-03-15T19:39:50","date_gmt":"2023-03-15T15:39:50","guid":{"rendered":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/?page_id=709"},"modified":"2024-08-11T22:15:35","modified_gmt":"2024-08-11T18:15:35","slug":"the-adgm-spv","status":"publish","type":"page","link":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/?page_id=709","title":{"rendered":"The ADGM SPV"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"709\" class=\"elementor elementor-709\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2fbd708 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2fbd708\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b2ff8e3\" data-id=\"b2ff8e3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-036d053 elementor-widget elementor-widget-spacer\" data-id=\"036d053\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb55a49 elementor-widget elementor-widget-image\" data-id=\"fb55a49\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"100\" height=\"100\" src=\"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/wp-content\/uploads\/2023\/03\/add.png\" class=\"attachment-full size-full wp-image-167\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3394099 elementor-widget elementor-widget-heading\" data-id=\"3394099\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">AGDM SPV<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9e3e30a elementor-widget elementor-widget-spacer\" data-id=\"9e3e30a\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-500c6ab elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"500c6ab\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d36b855\" data-id=\"d36b855\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-41124fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"41124fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-297b7aa\" data-id=\"297b7aa\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4fe2c80 elementor-widget elementor-widget-text-editor\" data-id=\"4fe2c80\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3 data-pm-slice=\"1 1 []\"><strong>ABOUT THE ADGM<\/strong><\/h3><p class=\"\">Abu Dhabi Global Market (\u201cADGM\u201d) is established pursuant to Abu Dhabi Law No. 4 of 2013 as a financial free zone in the Emirate of Abu Dhabi, with its own civil and commercial laws. ADGM offers market participants a world\u2010class legal system and regulatory regime.<\/p><p class=\"\">ADGM provides a wide spectrum of services covering Banking, Insurance, Wealth Management, Asset Management and Capital Market activities.<\/p><p class=\"\" data-rte-preserve-empty=\"true\">\u00a0<\/p><h3><strong>WHY ADGM? <\/strong><\/h3>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ecb8093 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ecb8093\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-b8ff13c\" data-id=\"b8ff13c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-62bc661 elementor-widget elementor-widget-text-editor\" data-id=\"62bc661\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Fully backed up by the Abu Dhabi Government which has top sovereign credit ratings.<\/li><li>First jurisdiction in the MENA region to apply English Common Law in its entirety.<\/li><li>First to host world\u2019s first fully digital courtroom.<\/li><li style=\"list-style-type: none;\">\u00a0<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-6075211\" data-id=\"6075211\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b1f841e elementor-widget elementor-widget-text-editor\" data-id=\"b1f841e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Home to world\u2019s first digital banking license regime.<\/li><li>Region\u2019s first virtual asset regulatory framework.<\/li><li>Over 3000 entities registered and operating from ADGM<\/li><li style=\"list-style-type: none;\">\u00a0<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d630ee8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d630ee8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-44210e4\" data-id=\"44210e4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-914e7ce elementor-widget elementor-widget-text-editor\" data-id=\"914e7ce\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3 data-pm-slice=\"1 1 []\"><strong>WHAT IS AN SPV? <\/strong><\/h3><p class=\"\">SPVs are usually established to isolate financial and legal risk by ring- fencing assets and liabilities. SPVs can be established as subsidiaries, project or joint venture vehicles to ensure that only those assets related to a transaction are exposed to the liabilities associated with that transaction.<\/p><p class=\"\" data-rte-preserve-empty=\"true\">\u00a0<\/p><h3><strong>FEATURES OF AN ADGM SPV <\/strong><\/h3><p class=\"\">An ADGM SPV offers multiple classes of shares, a first in the region. Coupled with an option to customise the Memorandum completely, the ADGM SPV provides a viable option for a range of holding and investment structures.<\/p><p class=\"\" data-rte-preserve-empty=\"true\">\u00a0<\/p><h3><strong>SALIENT FEATURES &amp; BENEFITS OF ADGM FOUNDATIONS: <\/strong><\/h3>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-fe2279c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fe2279c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-268dcad\" data-id=\"268dcad\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-06c10db elementor-widget elementor-widget-text-editor\" data-id=\"06c10db\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><p class=\"\">No attestations for corporate documents<\/p><\/li><li><p class=\"\">Shelf SPVs permitted<\/p><\/li><li><p class=\"\">No requirement to file or audit accounts<\/p><\/li><li><p class=\"\">Minimum requirement of 1 shareholder and 1 director<\/p><\/li><li><p class=\"\">No minimum share capita<\/p><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-e5127f8\" data-id=\"e5127f8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-23660f8 elementor-widget elementor-widget-text-editor\" data-id=\"23660f8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><p class=\"\">0% corporate tax and no tax filing required<\/p><\/li><li><p class=\"\">No restrictions on the nationality of ownership<\/p><\/li><li><p class=\"\">No maximum number of shares<\/p><\/li><li><p class=\"\">Migration of companies into and out of ADGM allowed.<\/p><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a2e91fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a2e91fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-57ee58e\" data-id=\"57ee58e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-79afded elementor-widget elementor-widget-text-editor\" data-id=\"79afded\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div id=\"block-yui_3_17_2_1_1610309814360_30727\" class=\"sqs-block html-block sqs-block-html\" data-block-type=\"2\"><div class=\"sqs-block-content\"><h3 data-pm-slice=\"1 1 []\"><strong>WHAT CAN AN ADGM SPV BE USED FOR? <\/strong><\/h3><p class=\"\">The typical uses of an SPV include:<\/p><h4><strong>INVESTMENT HOLDING <\/strong><\/h4><p class=\"\">Can own all types of financial, non-financial and virtual assets, internationally including freehold properties in Dubai and Abu Dhabi.<\/p><h4><strong>SECURITISATION <\/strong><\/h4><p class=\"\">Can be used by an originating party to securitise loans (or other receivables) by creating an SPV which purchases these assets by issuing debt, secured on these underlying assets.<\/p><h4><strong>REAL ESTATE INVESTMENTS<\/strong><\/h4><p class=\"\">Can be used to acquire title to real property and limit recourse of mortgage lenders depending on the location of the asset. In some jurisdictions, the sale of the SPV\u2019s shares can result in lower taxes and transaction fees when compared to transferring the asset.<\/p><h4><strong>FINANCING <\/strong><\/h4><p class=\"\">Can be used to ring-fence certain investments, permitting financing without leading to an increase in existing debt levels for the parent firm or exposing the parent\u2019s assets (or SPV\u2019s assets) to cross-liabilities.<\/p><h4><strong>ASSET TRANSFER<\/strong><\/h4><p class=\"\">Can be used to transfer assets in conjunction with material agreements.<\/p><h4><strong>RISK SHARING <\/strong><\/h4><p class=\"\">In cases of joint ventures, can be used to form specific project-based companies. This would reflect agreed management responsibility while legally isolating joint venture partners from risks associated with the joint venture.<\/p><h4><strong>RAISING CAPITAL <\/strong><\/h4><p class=\"\">Can be used to raise capital, with creditworthiness determined by the collateral of the SPV, rather than the credit rating of the parent firm.<\/p><h4><strong>INTELLECTUAL PROPERTY <\/strong><\/h4><p class=\"\">Can be used to separate Intellectual Property into a separate structure, which has minimal liabilities and can be used to raise funds and enter into license agreements with third parties.<\/p><h4><strong>LEGAL STRUCTURE <\/strong><\/h4><p class=\"\">The following main options are available:<br \/>1. Private Company Limited by Shares \u2013 LTD<\/p><p class=\"\">A standard private company limited by shares.<br \/>2. Restricted Scope Company \u2013 RSC<\/p><p class=\"\">This offers limited information disclosure on the public register; however, full disclosures would have to be made to the Registrar. To account for the fact that this less stringent approach could prejudice shareholders and creditors, RSCs may only be incorporated as a subsidiary of a public company, or as a family office.<\/p><h4><strong>TAX RESIDENCY <\/strong><\/h4><p class=\"\">ADGM SPVs can be eligible to apply for a Tax Residency Certificate from the Ministry of Finance to avail the UAE\u2019s Double Tax Treaty network. The SPV may need to fulfil certain additional criteria.<\/p><h4><strong>OFFICE SPACE REQUIREMENT <\/strong><\/h4><p class=\"\">SPVs are not required to have dedicated physical office spaces; however, they would need to maintain a registered address in the centre. The ADGM allows for the use of the offices of ADGM-based service providers, for this purpose.<\/p><h4><strong>BANKING <\/strong><\/h4><p class=\"\">ADGM Companies can take advantage of the solid banking infrastructure offered by the UAE without incurring expensive legalization fees for constitutional documents which are generally required for foreign entities in order to open bank accounts in the UAE.<\/p><p class=\"\">ADGM Companies may also establish bank accounts outside UAE internationally with much more relative ease than its counterparts in other offshore jurisdictions.<\/p><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f60d265 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"f60d265\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/contact-us\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Contact Us<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>AGDM SPV ABOUT THE ADGM Abu Dhabi Global Market (\u201cADGM\u201d) is established pursuant to Abu Dhabi Law No. 4 of 2013 as a financial free zone in the Emirate of Abu Dhabi, with its own civil and commercial laws. ADGM offers market participants a world\u2010class legal system and regulatory regime. ADGM provides a wide spectrum [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"class_list":["post-709","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/pages\/709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=709"}],"version-history":[{"count":17,"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/pages\/709\/revisions"}],"predecessor-version":[{"id":2253,"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=\/wp\/v2\/pages\/709\/revisions\/2253"}],"wp:attachment":[{"href":"https:\/\/mystifying-torvalds.74-208-165-98.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}