The Riffle
The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has issued Consultation Paper No. 7 of 2026, proposing a dedicated regulatory framework for business centre service providers.
The proposals would classify providing business centre services as a controlled activity and introduce specific licensing conditions covering financial resources, insurance, client contracts, pricing transparency and continuity planning.
The objective is to protect businesses that depend on these centres for their premises and registered office arrangements. ADGM’s official announcement confirms that the consultation closes on 6 November 2026. The proposals are not yet in force.
Key highlights
Controlled activity designation: The framework would cover businesses providing furnished offices alongside ancillary services such as reception, mail handling, internet access and meeting facilities.
Minimum regulatory capital: Operators would need at least USD 50,000 in immediately available funds, with any shortfall replenished within seven business days.
Public liability insurance: Minimum cover of USD 1 million for any single claim would be required.
Client agreement limits: Agreements could not extend beyond the operator’s legal right to occupy the premises.
Written pricing disclosures: Prospective clients would receive details of pricing, service packages and exclusions before signing.
Continuity requirements: Operators would need contingency and wind-down plans, alongside prompt reporting of material events affecting continued operations.
Cash restrictions: Accepting or distributing cash above USD 3,000 per transaction would be prohibited, subject to the proposed exemption provisions.
Transition period: Existing licensed business centres would have a proposed six-month transition period following enactment.
What does this mean for businesses?
Operators would need to review both contracts and operational readiness. Headleases and client agreements would need to align, while pricing documents, capital monitoring, insurance and exit arrangements would need to meet the proposed conditions.
Tenants and CSPs would gain clearer safeguards around a critical business dependency. Losing a business centre address can trigger urgent relocation, corporate record changes and unexpected costs. For CSPs, one closure may affect several underlying clients. The proposals seek to reduce this exposure and improve support when disruption occurs.
Related amendments extend beyond business centres. The consultation proposes clarifications to professional indemnity insurance for company, legal and tax service providers, covering specified third-party liabilities arising from employee or representative misconduct, errors or omissions, and legal and professional defence costs. It also proposes an annual legal service provider return submission fee and late filing fees for annual company and legal service provider returns.
Conclusion
The proposals are not yet in force. New applicants would need to comply when the framework takes effect, while existing licensed business centres would have a proposed six-month transition period following enactment.
Feedback must be submitted through the RA Consultation Portal by 6 November 2026. Following consultation, the RA would consider responses and progress the amendments for final enactment and publication.
The Riffle takeaway
A business address is an operational dependency. The proposed framework would require stronger support behind that dependency through aligned occupancy terms, transparent pricing, financial safeguards and practical continuity plans.
