ADGM Foundations: Structuring Wealth with Purpose
A flexible legal structure designed for asset protection, succession planning, and
long-term wealth preservation — backed by ADGM’s robust legal framework.
What Is a Foundation?
A foundation is a legal entity that bridges the gap between a company and a trust. Unlike a company, it does not issue shares or represent ownership—it is what is known as an “orphan structure”.
Foundations are rapidly gaining popularity as sophisticated wealth management and succession planning tools, particularly among globally mobile families with cross-border assets. Offering a probate-free and tax-efficient approach to preserving and transferring wealth, foundations provide enhanced control and flexibility compared to traditional trusts.
The ADGM Foundations Regulations 2017 allow for the creation of foundations for asset protection, estate planning, and income preservation purposes. While ADGM Foundations cannot engage in commercial activities or be used for charitable objectives, they serve as powerful vehicles for secure, long-term wealth management.
Key Stakeholders in an ADGM Foundation
Founder
The Founder—either a natural person or legal entity—establishes the foundation and contributes the initial assets. Founders can also serve as council members and may be named beneficiaries.
Council
Every foundation must appoint a Council, composed of at least two members, to oversee the foundation’s purpose, manage its assets, and fulfil its obligations as defined by the Charter, By-Laws, and ADGM regulations. The Founder can also serve on the Council.
Beneficiaries
At least one beneficiary must be designated to receive benefits under the foundation.
Guardian
The Guardian role is optional during the Founder’s lifetime but becomes mandatory upon the Founder’s passing. The Guardian helps ensure the Foundation operates according to the Founder’s intentions.
Establishing a Foundation in ADGM
To establish a foundation in ADGM, a clear and regulated process must be followed. With Rosemont Partners, you can navigate every step with ease and confidence, ensuring a seamless experience from start to finish.
It is a legal requirement to engage an ADGM-licensed Corporate Service Provider (CSP) to assist with incorporation and ongoing compliance. Rosemont Partners is a well-established ADGM-licensed CSP, operating since
At the heart of every ADGM foundation are its governing documents, which determine how the foundation will be structured, managed, and operated both internally and externally.
Two key documents are required:
- The Charter: Sets out the foundation’s name, purpose, governance structure, and asset management rules. This document is filed with the ADGM Registrar and is accessible to the public.
- The Bylaws: Provide more detailed rules for administration, decision-making, and beneficiary rights. Unlike the Charter, the Bylaws remain private to the foundation and are not published.
Every ADGM foundation must be established with a specific, lawful purpose that guides how it will operate and manage its assets. Defining the purpose is not only a legal requirement but also a practical necessity.
A foundation’s purpose may be either:
- Charitable: Activities directed towards philanthropy or public benefit, such as funding education, healthcare, humanitarian relief, or research initiatives.
- Non-charitable: Purposes of a private nature, such as holding and protecting family assets, succession planning, wealth management, or structuring corporate holdings.
Once the governing documents are prepared, the next step is to formally register the foundation with the ADGM Registration Authority. This involves submitting:
- A completed incorporation form.
- The foundation’s Charter and Bylaws.
- Details of the founder(s), council members, and guardian (if required).
- A registered office address within ADGM (normally provided by your service provider).
- Payment of the prescribed registration fees.
If the application and documents meet all requirements, the ADGM Registrar will issue a Certificate of Incorporation. This serves as formal confirmation that the foundation has been successfully registered and is now recognised as a legal entity under ADGM law.
Key Features & Benefits of ADGM Foundations
ADGM Foundations offer a flexible, efficient, and discreet vehicle for wealth protection, succession planning, and global asset holding. Their structure is designed to suit the needs of high-net-worth individuals, families, and international investors.
Broad Asset Ownership
An ADGM Foundation may hold a wide variety of asset classes, including:
- Financial investments
- Shares in domestic and international companies
- Freehold property in the UAE and abroad
- Intellectual property rights
Cost-Effective Setup & Maintenance
- Low formation and ongoing maintenance costs
- No requirement for a physical office
- No statutory requirement to file or audit accounts
Privacy & Discretion
- Minimal public disclosure requirements
- Individuals’ names do not appear on the public register
Broad Asset Ownership
An ADGM Foundation may hold a wide variety of asset classes, including:
- Financial investments
- Shares in domestic and international companies
- Freehold property in the UAE and abroad
- Intellectual property rights
Cost-Effective Setup & Maintenance
- Low formation and ongoing maintenance costs
- No requirement for a physical office
- No statutory requirement to file or audit accounts
Start your foundation
With confidence
Take the first step toward secure and strategic wealth planning. Reach out to our team to learn how ADGM Foundations can support your long-term goals.
