Strengthening Governance and Professional Standards Across the Financial Centre
The Abu Dhabi Global Market (ADGM) Registration Authority has announced a new licensing framework for legal, tax, and company service providers, marking a major step toward enhancing professional governance and raising industry standards within the financial centre.
Under the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025 and the Controlled Activities Rules 2025, ADGM has officially introduced a controlled activity for tax services. This framework sets out new licensing, conduct, and accountability requirements to ensure that advisory practices operate with greater transparency and align with international standards of competence and ethics.
Enhancing Oversight and Market Integrity
The new rules form part of ADGM’s broader strategy to strengthen oversight of professional services within its jurisdiction and align with the UAE’s corporate tax framework. These enhanced controls take immediate effect for new licence applicants, while existing firms will be given transitional timelines to meet the updated requirements.
Key Highlights of the Updated Framework
For Legal Service Providers:
- Must appoint a managing partner or equivalent with at least eight years of post-qualification experience.
- Maintain a registered office within ADGM.
- Obtain professional indemnity insurance.
- Submit an annual return to the Registration Authority.
For Tax Service Providers:
- At least 50% of senior management must hold recognized professional qualifications.
- Must maintain professional indemnity insurance.
- Required to comply with defined ethical and governance standards.
For Company Service Providers:
- Mandatory conflict-of-interest policies and procedures.
- Enhanced governance and accountability measures to protect investors and clients.
By introducing continuing conditions of licence and strengthening the monitoring of professional activities, ADGM aims to bolster market confidence, enhance transparency, and protect clients operating within the free zone.
The Registration Authority emphasized that these updates “enhance governance standards for licensed company service providers through mandatory conflicts of interest policies and procedures, ensuring accountability across the corporate services sector.”
Aligning with Global Tax and Governance Standards
The inclusion of a controlled activity for tax services places ADGM among the first jurisdictions in the GCC to directly regulate tax advisory work. This initiative aligns with international efforts to promote professionalism and oversight in tax compliance and corporate governance — particularly as global minimum tax standards reshape regulatory landscapes worldwide.
The full Conditions of Licence Rules 2025 and Controlled Activities Rules 2025 are now available on ADGM’s official website, with transitional provisions to help existing firms align with the new framework.
