Special Purpose Vehicles (SPVs) are one of the leading initiatives in the Abu Dhabi Global Market (ADGM), and their popularity has helped to position the ADGM as an innovative environment for financial growth.
Through our expert team in Abu Dhabi, and the UAE more widely, we have developed a high quality SPV service.
An SPV is a flexible solution used to structure asset holdings and investments. They are separate legal entities that can isolate financial and legal risk by ring-fencing assets and liabilities.
These structures are popular with an array of clients. JTC’s team in the UAE works with family offices and both local and global companies across numerous industries, including, logistics, agriculture, construction, education and pharmaceutical. Clients use SPVs as local subsidiaries, for specific projects and for joint venture transactions.
The ADGM has promoted the SPV regime as one of its leading structures in the UAE market. The primary reasons for using the ADGM for SPVs include:
- Common law jurisdiction
- Independent ADGM courts
- Robust regulatory framework
- Access to the broad UAE double tax treaty network
- Variety of legal structures available
- Quick and easy, fully digital registration process
- No attestation required for corporate documents
JTC’s team is experienced in the set up and administration of SPVs in the ADGM. Clients often choose this solution because the incorporation process is highly efficient when it comes to processes, fees and turn-around times. The SPV regime in this region is also backed by a strict due diligence process and robust regulation.
The legal framework governing Corporate Service Providers (CSPs) in the ADGM was amended in 2021. Following the amendments to the legislation, SPVs and foundations in the ADGM, unless exempt, are required to appoint a CSP that is licensed to operate in the ADGM. JTC UAE gained this licence in March 2021. CSPs must comply with a number of regulations governing, amongst other things, record-keeping, annual filings and the safeguarding of client money.
JTC UAE can assist with the complete life cycle of the SPV from incorporation to liquidation, ensuring regulatory compliance. This includes directorship services, annual return and annual account filings, as well as numerous ad hoc filings, including the allotment of shares and changes in directors.
For more information on SPVs or to find out how JTC can help you, please contact Alia Haskouri.
