All ADGM Licensees and Exempted Licensees (i.e. persons that carry on one more “Relevant Activities”) are required to notify the Registration Authority of the following annually (regardless of being exempt or not earning income), i.e. the “Annual Notification Requirement”:
- the Relevant Activity being carried out during the Relevant Financial Year.
- whether it has generated Relevant Income during the Relevant Financial Year.
- the date of commencement and end of its Financial Year.
- any other information or documents as may be requested by the Registration Authority.
A notification submitted by an Exempted Licensee must be accompanied by sufficient evidence to substantiate the Exempted Licensee’s status for each category in which it claims to be exempt.
The notification must be submitted within six months from the end of the Financial Year of the Licensee or Exempted Licensee.
The notification must be submitted electronically on the Ministry of Finance Portal, which can be accessed here.
Economic Substance Report
ADGM Licensees (not Exempted Licensees) that undertake a Relevant Activity from which they earn income during a Relevant Financial Year, are required to:
- Meet the Economic Substance Test.
- File an Economic Substance Report.
The Economic Substance Report is due within 12 months of the end of the Licensees’ Relevant Financial Year (Accounting Reference Period).
Therefore the first Economic Substance Report will be due by 31 December 2020.
Note: Exempted Licensees or Licensees that carry on a Relevant Activity but did NOT derive income from that activity during a Relevant Financial Year, do NOT need to file an Economic Substance Report for that Relevant Financial Year (however a Notification is still required).
The report must be submitted electronically on the Ministry of Finance Portal, which can be accessed here.
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