ADGM introduces licensing regime for tax service firms

Dubai: The ADGM Registration Authority has announced a new licensing framework for legal, tax and company service providers, marking a major step in strengthening professional standards and governance across the financial centre.

Under the new Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025 and Controlled Activities Rules 2025, ADGM has introduced a controlled activity for tax services. The framework establishes new conditions for licensing, conduct, and accountability aimed at ensuring that advisory services meet international benchmarks of competence and transparency.

The rules form part of a wider effort to enhance oversight of professional services operating within ADGM’s jurisdiction and to align with the UAE’s broader corporate tax framework. The enhanced controls are effective immediately for new licence applicants, with transitional timelines for existing firms to meet the new requirements.

Raising the bar for legal and tax services

The updated framework sets specific qualification thresholds for legal and tax professionals. Applicants seeking to offer legal services must appoint a managing partner or equivalent with at least eight years of post-qualification experience, maintain a registered office in ADGM, obtain professional indemnity insurance, and submit an annual return to the Registration Authority.

Tax service providers must ensure that at least half of their senior management team are suitably qualified professionals, hold professional indemnity insurance, and comply with a set of defined ethical and governance principles.

For company service providers, the rules introduce a mandatory requirement to implement conflict-of-interest policies and procedures, a move that further reinforces ADGM’s focus on governance and investor protection.

By setting continuing conditions of licence and strengthening oversight of professional activities, the updated rules are expected to improve market integrity and protect clients operating within the free zone.

The RA added that the changes “enhance governance standards for licensed company service providers through mandatory conflicts of interest policies and procedures,” ensuring accountability throughout the corporate services ecosystem.

Aligning with international standards

The introduction of a controlled activity for tax services places ADGM among the first jurisdictions in the GCC to directly regulate the provision of tax advisory work. The move is in line with international efforts to bring greater professionalism and oversight to tax compliance and corporate governance at a time when global minimum tax standards are reshaping regulatory expectations.

The full enacted Conditions of Licence Rules 2025 and Controlled Activities Rules 2025 are publicly available on ADGM’s official website. The Registration Authority said transitional arrangements will allow existing licence holders sufficient time to align with the new requirements.