Foundation setup in ADGM

Create a lasting legacy with an ADGM Foundation that protects assets, plans succession, and supports family or philanthropic objectives with flexibility and international recognition.

Foundation setup in ADGM

Create a lasting legacy with an ADGM Foundation that protects assets, plans succession, and supports family or p... read more
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Mohammad Shafeek

Founder & Group CEO, MS

Protect Your Assets and Legacy with Foundation Setup in ADGM

ADGM Foundations offer a robust, internationally recognized legal structure tailored for High-Net-Worth Individuals (HNWIs), families, and businesses seeking to safeguard wealth, structure succession, and preserve assets across generations. Designed for flexibility and efficiency, they feature low setup and maintenance costs, no minimum capital requirements, and no need for a physical office, only a registered ADGM address via an authorized Corporate Service Provider (CSP). Whether used for estate planning, corporate structuring, tax planning, or philanthropic initiatives, ADGM Foundations strike the perfect balance between regulatory compliance, confidentiality, and operational efficiency.

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Are ADGM Foundations required to file annual returns or audited financial statements?

    Are there different categories for setting up a foundation in ADGM?

    • Exempt applicants may establish and manage their foundation independently, without the need for a Company Service Provider (CSP).
    • Non-Exempt applicants are required to appoint an ADGM-registered CSP to handle the foundation's setup and ongoing administration.
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    Foundation Framework

    ADGM Foundation Setup & Governance

    1

    Foundation Charter & Legal Framework

    Every foundation is established through a charter, which serves as its legal blueprint. The charter defines:

    • Name (must end with "Foundation")
    • Purpose (private, charitable, or commercial)
    • Registered office and agent within ADGM
    • Governance rules (Council duties, asset management, distribution powers)
    • Financial reporting obligations

    Founders may also draft confidential bylaws, which outline:

    • Internal operational rules
    • Voting procedures
    • Succession protocols
    • Discretionary beneficiary rights
    Foundation Charter & Legal Framework
    2

    Roles & Governance for ADGM Foundation Setup

    Decision-Making
    Council

    The foundation's decision-making body:

    • Minimum 2 members (individuals or corporate entities)
    • Responsible for managing assets and fulfilling the foundation's objectives
    • Owes fiduciary duties to the foundation
    Establisher
    Founder

    The individual or entity that establishes the foundation:

    • May serve on the council (optional)
    • Can retain influence through bylaws or council membership
    Optional
    Guardian
    • Oversees council decisions
    • Ensures alignment with the foundation's purpose
    Flexible
    Beneficiaries
    • Can be structured flexibly
    • May be discretionary
    • Provides privacy and adaptability
    3

    Registered Office & Capital Requirements

    Registered Office & Capital Requirements
    • A registered office in ADGM is mandatory
    • Appointment of a licensed registered agent is required
    • No minimum capital requirement, but initial assets must be sufficient to meet the foundation's purpose
    • Registration grants legal personality under UAE law

    Assets may include:

    CashSharesReal EstateIntellectual Property
    4

    Ongoing Compliance & Reporting for Setting Up an ADGM Foundation

    Maintaining an ADGM Foundation requires adherence to regulatory and governance obligations.

    Registered Agent Responsibilities
    • Ensure compliance with ADGM regulations
    • Monitor AML/CFT obligations
    • Maintain statutory records
    • Communicate with regulators
    Annual Filings & Updates
    • File confirmation statements (activity status, council members, registered office, beneficial ownership)
    • Report material changes (charter amendments, council updates, guardian or founder changes)
    Non-Exempt Foundations
    • Mandatory appointment of a registered agent
    • Subject to regulatory monitoring and compliance oversight

    Need a Licensed Registered Agent in ADGM?

    Secure your foundation’s legal standing with our fully compliant registered agent services.

    Case Study

    ADGM Family Foundation for Succession and Asset Protection

    A UAE-based entrepreneur sought to ensure smooth business succession, protect family wealth, and maintain income continuity. His portfolio included:

    • A trading company generating steady revenue
    • Income-generating real estate across the UAE

    He wanted a solution that combined structured governance, asset protection, and controlled distributions while minimizing family disputes or creditor exposure.

    ADGM Family Foundation Case Study

    Key Challenges

    Succession Uncertainty

    Direct ownership of assets could result in inheritance disputes among heirs.

    Asset Exposure

    Personal ownership made assets vulnerable to potential creditor claims.

    Income Continuity

    Wanted uninterrupted cash flow for family needs while maintaining structured control over distributions.

    Structure Implemented

    An ADGM Family Foundation was established as the primary holding entity:

    ADGM Family FoundationPrimary Holding Entity
    Asset 1Trading Company Shares
    Asset 2Income-Generating Properties
    Foundation’s charter and confidential bylaws formalized governance rules, succession provisions, and distribution policies
    Independent council members were appointed to ensure neutrality, regulatory compliance, and long-term continuity

    Outcome

    Asset Protection

    Shielded family assets from inheritance disputes and creditor claims.

    Income Continuity

    Enabled structured and uninterrupted cash flow for beneficiaries.

    Governance Clarity

    Defined roles and responsibilities reduced ambiguity and improved oversight.

    Succession Planning

    Ensured orderly and controlled transfer of wealth across generations.

    Protect Your Assets and Plan Succession with Certainty

    Discover how a bespoke ADGM foundation can safeguard wealth and ensure seamless transitions.

    Key Features of an ADGM Foundation Setup

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    Provides a distinct legal personality, separating liability from the founder
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    Protects family wealth, investments, and other assets
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    Ensures smooth succession and transfer of assets across generations
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    Supports both charitable and non-charitable objectives
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    Continues beyond the founder’s lifetime for long-term legacy
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    Offers flexible governance through a Council and Guardian
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    Recognized internationally for cross-border asset management
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    Maintains confidentiality of founders, beneficiaries, and ownership details
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    Provides a distinct legal personality, separating liability from the founder
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    Protects family wealth, investments, and other assets
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    Ensures smooth succession and transfer of assets across generations
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    Supports both charitable and non-charitable objectives
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    Why Choose MS
    for Your ADGM Foundation Setup Services?

    Setting up an ADGM Foundation requires careful handling of legal structuring, governance frameworks, and documentation. While ADGM offers a flexible and cost-efficient foundation regime, establishing one correctly demands both technical precision and local expertise. MS ensures a seamless setup process tailored to your objectives. From selecting the right structure to drafting charters, appointing council members, and ensuring ongoing administration, we manage every detail. Our collaborative approach gives you the confidence of regulatory compliance, operational efficiency, and a foundation designed to secure your wealth, legacy, and long-term goals.

    Setting up an ADGM Foundation requires careful handling of legal structuring, governance frameworks, and documen... read more

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    Frequently Asked Questions (FAQ)

    Can an ADGM Foundation hold assets outside the UAE?
    Yes, an ADGM Foundation can hold and manage global assets, including shares, investments, intellectual property, and real estate, subject to local laws in each jurisdiction.
    What is the minimum capital required to establish an ADGM Foundation?
    There is no minimum capital requirement, making ADGM Foundations cost-effective and flexible for founders.
    Who manages an ADGM Foundation?
    An ADGM Foundation is managed by a Council, and the Founder may appoint a Guardian to oversee the Foundation’s objectives and ensure accountability.
    Can an ADGM Foundation be used for philanthropic purposes?
    Yes, ADGM Foundations can be established for both charitable and non-charitable purposes, including philanthropy, estate planning, and corporate structuring.
    How confidential is an ADGM Foundation?
    Details of founders, beneficiaries, and the Foundation’s internal arrangements are not made public, ensuring a high degree of confidentiality.
    Is a physical office required for an ADGM Foundation?
    No, only a registered ADGM address via a licensed Corporate Service Provider (CSP) is required.
    Can an ADGM Foundation hold assets outside the UAE?
    Yes, an ADGM Foundation can hold and manage global assets, including shares, investments, intellectual property, and real estate, subject to local laws in each jurisdiction.
    What is the minimum capital required to establish an ADGM Foundation?
    There is no minimum capital requirement, making ADGM Foundations cost-effective and flexible for founders.
    Who manages an ADGM Foundation?
    An ADGM Foundation is managed by a Council, and the Founder may appoint a Guardian to oversee the Foundation’s objectives and ensure accountability.
    Can an ADGM Foundation be used for philanthropic purposes?
    Yes, ADGM Foundations can be established for both charitable and non-charitable purposes, including philanthropy, estate planning, and corporate structuring.