10 Common Mistakes When Setting Up in ADGM (and How to Avoid Them)

Most ADGM setups go smoothly. The ones that don't tend to trip over the same handful of avoidable mistakes. Here are the ten worth guarding against, roughly in the order they cause trouble.

1. Underestimating the office requirement

Founders assume the office is optional or can wait, then learn that for most entities a registered address (minimum one desk) is required to validate the licence. Treat it as a core step.

2. Overpaying for the Al Maryah premium

Defaulting to the core without realising an Al Reem address gives the identical licence for far less — about AED 1,200 versus AED 3,500 a month for a desk. Paying more for the same standing is the easiest mistake to avoid.

3. Choosing the wrong structure

An entity type that doesn't match your activity creates friction and cost later. Decide whether you're operating, holding or managing funds before you file.

4. Assuming an SPV exempts the whole group

SPVs need no premises — but the operating entity behind them usually does. Confusing the two is a nasty surprise at registration.

5. Buying a private office when a desk would do

Non-regulated startups and operating companies can meet the requirement with a dedicated desk. Committing to a private office or a lease before you need it is money spent on unused space.

6. Forgetting regulated firms need more

The flip side: FSRA-regulated firms generally need dedicated premises (a private office) to house staff and store client records. Don't under-provide here.

7. Missing the Hub71 eligibility letter (tech startups)

Since July 2024, tech startup licence applications require an eligibility letter from Hub71 first — applications without it are not accepted. Plan for that step.

8. Inconsistent documentation

Names, addresses and details that don't match across documents are the most common cause of registry delays. Reconcile everything before submitting.

9. Underbudgeting the full picture

Incorporation (~USD 1,500), annual licence by category (roughly USD 6,000–15,000), ~USD 300 data protection, visas, office — budget for all of it, not just the headline fee.

10. Mis-planning visas

Allocation depends on space and licence: up to 3 per desk for a tech startup, 2 for a standard company, 1 per 8 sqm of office. Choose your desk/office around the team you need to sponsor.

Dig into the big ones: the office requirement and choosing your structure.

Talk to MY Coworking

Avoid mistakes 1 and 2 in one move: a compliant ADGM address and desk on Al Reem from AED 1,200/month — handled before it becomes a delay or an overpayment.

We're on Al Reem Island — 2312 Addax Tower, City of Lights, Abu Dhabi. Email contact@mycoworking.ae to book a tour or get a same-day quote.