Abu Dhabi tightens oversight on legal, tax and corporate service providers

Dubai: The Abu Dhabi Global Market’s Registration Authority (RA) has issued new regulations introducing stricter licensing and governance requirements for legal, tax, and company service providers.

The new Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025 and Controlled Activities Rules 2025 are effective immediately for new applicants. Existing licensees have transition timelines to comply.

Better oversight framework

The updated regime introduces:

• A new controlled activity for tax services.

• Revised application and continuing conditions for providers of legal and tax services.

• Mandatory conflict-of-interest policies for company service providers.

These updates replace the previous licensing framework to enhance transparency, accountability, and professional standards within ADGM’s regulated ecosystem.

Legal service providers

• Applicants must appoint a managing partner or equivalent with at least eight years of post-qualification experience and a recognised professional qualification.

• Firms must maintain a registered office in ADGM, hold professional indemnity insurance of at least $1 million, and file an annual return with the RA.

• Existing firms have six months to meet the new insurance and staffing requirements.

Tax service providers

• At least half of senior management must hold recognised professional qualifications and five years of experience.

• Firms must maintain professional indemnity insurance and adhere to professional conduct principles similar to those applied to legal practices.

Company service providers

• Entities must establish robust compliance frameworks, including risk management, AML, and conflict-of-interest procedures.

• They are required to submit an annual return detailing clients, services, staffing, and training.

• A minimum regulatory capital of $50,000 and mandatory MLRO and compliance officers are now required.

Bottom line impact? The RA said the reforms align ADGM’s licensing standards with international best practices and support Abu Dhabi’s push for a transparent, well-regulated business environment.

For professionals operating in ADGM, the changes signal tighter supervision, greater accountability, and a stronger emphasis on professional integrity across legal, tax, and corporate services.