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
1
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.
2
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.
3
Beneficiaries
At least one beneficiary must be designated to receive benefits under the foundation.
4
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 create a foundation, the entity must be formally registered with the ADGM Registrar.
1
Charter
The Charter is a document that must include:
- The foundation’s name
- Founder(s)’ names and addresses
- The foundation’s purpose
- A description of the initial assets
2
By-Laws
The By-Laws are private and detail the foundation’s beneficiaries and internal governance. These can be drafted based on the Founder’s Letter of Wishes.
3
Registered Office
Every foundation must maintain a registered office within ADGM, which also serves as its official legal address. This must be the same address as that of its corporate service provider or registered agent.
4
Authorised Signatory
An individual must be appointed as the foundation’s authorised representative in ADGM. This representative’s identity, along with a valid passport copy, UAE visa, or Emirates ID must be submitted at registration.
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.
1
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
2
Cost-Effective Setup & Maintenance
- Low formation and ongoing maintenance costs
- No requirement for a physical office
- No statutory requirement to file or audit accounts
3
Privacy & Discretion
- Minimal public disclosure requirements
- Individuals’ names do not appear on the public register
4
Tax Advantages
- 0% or 9% corporate tax
- No requirement to file tax returns
- Access to the UAE’s extensive network of over 90 double taxation treaties currently in force, with more under negotiation
5
Flexible Structure
- Initial endowment as low as USD 100
- Easy amendment of governance structure
- All roles may be fulfilled by either individuals or corporate entities
- Seamless migration of foundations into and out of ADGM
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.
