ADGM
vs VARA.
ADGM versus VARA: a commercial entity vs the Dubai virtual-asset regulator. You generally need both — the underlying entity is licensed by ADGM, and the regulated activity layer is licensed by VARA. USD 29,500 for the commercial entity is in addition to USD 500k–2M year-one VARA setup.
ADGM vs VARA, line by line.
| Attribute | ADGM | VARA |
|---|---|---|
| All-in year 1 | USD 29,500 | — |
| All-in year 2 | USD 29,300 | — |
| Time to licence (working days) | 14-28 (commercial); 120-365 (FSRA-regulated) | 120-365 |
| Foreign ownership | 100% | 100% |
| Tax — qualifying / corporate | 0% qualifying / 9% above AED 375k | — |
| Physical office required | Yes | Yes |
| Annual audit required | Yes | No |
| Legal system | English common law (ADGM applies ~50 UK statutes) | — |
| Regulator | Abu Dhabi Global Market (FSRA + ADGM Courts) | Virtual Assets Regulatory Authority (Dubai, excl. DIFC) |
| UAE double-tax treaty | n/a (UAE) | n/a (UAE) |
| Resident director required | No | No |
All figures are year-one all-in for a single-shareholder, single-activity engagement unless noted. Pricing current as of May 2026.
Pick ADGM when —
- Vc-backed startups
- Holding companies
- Fund vehicles
- Adgm foundations
- You want lowest-cost option (all-in from USD 29,500)
- You need fastest licence issuance (14-28 (commercial); 120-365 (FSRA-regulated) working days)
Pick VARA when —
- Crypto exchanges
- Custodians
- Brokers
- Nft platforms
- You need fastest licence issuance (120-365 working days)
Common questions on ADGM vs VARA.
The questions UAE-resident founders most often ask before choosing between ADGM and VARA. Each answer is current to 2026.
Which is faster to set up — ADGM or VARA?
ADGM typically issues a licence in 14-28 (commercial); 120-365 (FSRA-regulated) working days; VARA in 120-365 working days. Both are dependent on KYC clearance speed — submit complete documentation on day one to hit the lower end of either range.
What is the tax difference between ADGM and VARA?
ADGM: 0% qualifying / 9% above AED 375k. VARA: —. Effective tax position depends on substance, residency, treaty access and structuring.
Can a foreigner own 100% of a ADGM or VARA company?
Yes for both. ADGM: 100% foreign ownership. VARA: 100% foreign ownership. No UAE national partner or sponsor required.
Do ADGM and VARA require a physical office?
Yes — both require a physical office or warehouse lease within the respective free zone or onshore jurisdiction. Flexi-desk options are available at lower cost and satisfy the requirement for standard licences.
Which has easier UAE bank account opening — ADGM or VARA?
Both are bankable in the UAE. DMCC and DIFC entities tend to clear KYC fastest (3–6 weeks); IFZA, Meydan and offshore profiles take 4–8 weeks with more questions on flexi-desk-only setups. ArxSetup introduces UAE-resident clients to Mashreq Neo Biz, WIO, Emirates NBD and RAKBANK.
Which is better for my use case — ADGM or VARA?
ADGM suits VC-backed startups, holding companies, fund vehicles. VARA suits crypto exchanges, custodians, brokers. The right answer depends on customer location, banking needs, tax position and operating substance — book a structuring call for a written recommendation.
ADGM or VARA? A written answer.
We can produce a structured comparison memo for your specific facts — customer geography, banking needs, tax position, substance — and recommend a jurisdiction with reasoning, in writing.