Abu Dhabi Global Markets SPV
Benefits of the ADGM SPV regime
Fast efficient set-up process via Sovereign
Highly competitive fees
All ADGM-registered companies are eligible to apply for a Tax Residency Certificate
Access to ADGM’s independent civil and commercial legal regime
Access to ADGM’s independent English Common Law courts
No requirement to have corporate documents attested and legalised (in most cases)
No physical office space required in ADGM. As a registered agent, Sovereign will provides the registered address for the SPV
No restrictions on nationality of share ownership
No minimum share capital, no maximum number of shares or shareholders, and different classes of shares are permitted
Migration or continuance of existing corporate entities permitted
Simple ongoing reporting requirements
No liquidator required for wind-down process
Typical uses for SPVs
Securitisation – An SPV can be used by an originating party to securitise loans (or other receivables) by creating an SPV that purchases these assets by issuing debt, which is secured on these underlying assets. This ensures that the holders of the asset-backed securities have first priority right to receive payments on the debt while limiting recourse to the originator of the assets.
Real Estate Investment – An SPV can be used to acquire title to real property and limit recourse of mortgage lenders depending on the location of the asset. In some countries, the sale of an SPVs shares can result in lower taxes and transaction fees than transferring the asset itself.
Financing – Can be used to ring-fence investments, permitting financing without increasing debt levels for the parent company or exposing the parent’s assets (or SPV’s assets) to cross-liabilities.
Asset transfer – An SPV can be used to transfer assets along with associated material agreements that may permit the transfer of all or part of ownership of the enterprise, while keeping intact material agreements that may be necessary to maintain the value of the asset.
Risk sharing – An SPV can be used to form project companies for joint ventures, reflecting agreed management responsibility while legally isolating joint venture partners from risks associated with the venture.
Raising capital – An SPV can be used to raise capital at favourable rates in certain situations, with credit worthiness determined by the available collateral of the SPV rather than the credit rating of the parent company.