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ADGM announces major regulatory reforms for legal, corporate, and tax service providers for existing and new clients.
The consultation period is open until June 15, 2025.
Bhumika Arora
May 23, 2025
The Riffle
On May 16, 2025, the ADGM Registration Authority released Consultation Paper No. 5 of 2025 to solicit public feedback on proposed amendments to the Commercial Licensing Regulations. These amendments aim to enhance regulatory oversight and introduce new conditions for legal service providers, tax service providers, and company service providers operating within ADGM. The consultation period is open until June 15, 2025.
Key Amendments
1.Legal Service Providers
Enhanced Licensing Conditions: Introduction of specific conditions under the Commercial Licensing Regulations (Conditions of Licence and Branch Registrations) Rules 2025 to ensure that legal service providers meet defined standards of practice within ADGM.
2.Company Service Providers (CSPs)
Regulatory Oversight: Implementation of conditions aimed at strengthening the regulatory framework governing CSPs, ensuring compliance with ADGM’s operational and ethical standards.
3.Tax Service Providers
Controlled Activity Classification: Amendments to the Commercial Licensing Regulations (Controlled Activities) Rules 2024 to classify the provision of tax services as a controlled activity, subjecting tax service providers to specific regulatory requirements.
Current Scenario vs. Proposed Changes
Next Steps
Public Consultation: Stakeholders are invited to submit written comments by June 15, 2025, to [email protected], referencing Consultation Paper No. 5 of 2025.
Review and Finalization: Post-consultation, the RA will review feedback, consider necessary modifications, and proceed to enact the final regulations.
Implementation: Upon finalization, the updated Conditions of Licence Rules and Controlled Activities Rules will be published on the ADGM website, and entities will be expected to comply with the new requirements.
Summary
The proposed amendments signify ADGM’s commitment to refining its regulatory framework to ensure that legal, company, and tax service providers operate with enhanced accountability and in alignment with international best practices. Stakeholder engagement during the consultation phase is crucial to shaping a robust and effective regulatory environment within ADGM.
Read the full document on Consultation Paper No. 5 of 2025 here:
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