ADGM Foundations: A New Era in Asset Protection

ADGM Foundations offer a range of benefits and advantages for individuals and businesses looking to protect and manage their assets. By understanding the key aspects of ADGM Foundations and seeking professional advice, you can leverage this powerful tool to achieve your financial goals and secure your wealth for the future.

What are ADGM Foundations?

ADGM Foundations are a unique legal structure that allows individuals and businesses to secure their assets in a stable and reliable jurisdiction. These foundations offer a range of benefits, including asset protection, estate planning, and wealth preservation. By setting up a foundation in ADGM, you can ensure that your assets are safeguarded for future generations.

Benefits of Setting Up an ADGM Foundation

• Asset Protection: ADGM foundations offer a high level of asset protection, shielding assets from legal claims and creditors.
• Wealth Management: Foundations can be used to manage family wealth, ensuring smooth succession planning and financial stability.
• Philanthropic Endeavors: ADGM foundations allow individuals to support charitable causes and leave a lasting impact on society.
• Tax Efficiency: Foundations in ADGM benefit from a favorable tax environment, making it an attractive jurisdiction for international investors.

Requirements for Establishing an ADGM Foundation

To set up a foundation in the ADGM, certain requirements must be met:

1. Founder: A foundation must have at least one founder who initiates the establishment of the foundation.
2. Council Members: Foundations must have a council comprised of at least one member responsible for overseeing the foundation’s operations.
3. Registered Agent: A registered agent must be appointed to handle administrative tasks and liaise with regulatory authorities.
4. Legal Documentation: Founders must prepare legal documents outlining the foundation’s objectives, structure, and governance.

How to set up an ADGM Foundation?

Setting up an ADGM Foundation involves drafting a Foundation Charter, appointing a registered agent, and registering the Foundation with the ADGM authorities. It is important to seek legal and financial advice to ensure compliance with regulations and to tailor the Foundation structure to your specific needs and objectives.

What are the differences in the legal structures of an ADGM Foundation and a Trust?

1. Legal Personality:

• ADGM Foundation: Has a separate legal personality.
• Trust: Does not have a separate legal personality.

1. Control and Management:

• ADGM Foundation: Managed by a board of governors.
• Trust: Managed by the trustee.

1. Beneficiaries:

• ADGM Foundation: Beneficiaries must be identified but do not have enforceable rights.
• Trust: Beneficiaries have enforceable rights as per the trust deed.

1. Purpose:

• ADGM Foundation: Can be established for charitable, philanthropic, or wealth management purposes.
• Trust: Typically used for asset protection, estate planning, and wealth preservation.

Key Features of the ADGM Regulatory Framework

1. Registration Process: Foundations in ADGM are required to be registered with the Financial Services Regulatory Authority (FSRA). The registration process involves submitting detailed information about the foundation’s purpose, beneficiaries, and governance structure.
2. Governance Requirements: Foundations in ADGM are required to have a council that is responsible for managing the foundation’s assets and carrying out its objectives. The council members are appointed by the founder and must act in the best interests of the foundation and its beneficiaries.
3. Disclosure Requirements: Foundations in ADGM are required to maintain accurate and up-to-date records of their activities, financials, and beneficiaries. These records must be made available to the FSRA upon request to ensure compliance with regulatory requirements.
4. Compliance and Supervision: The FSRA oversees the compliance of foundations in ADGM with the regulatory framework. It conducts regular inspections and audits to ensure that foundations comply with the law and best practices.

Registration Requirements for ADGM foundations?

To register a foundation in ADGM, the following requirements must be met:

• The proposed foundation must have a minimum endowment of at least USD 10,000.
• A registered agent must be appointed to act on behalf of the foundation.
• The foundation’s charter and bylaws must be prepared and submitted to the ADGM Registration Authority.

How does licensing work for ADGM foundations?

Once the foundation is registered, it may be required to obtain a license depending on the activities it intends to carry out. The ADGM Registration Authority will assess the nature of the foundation’s activities to determine if a license is required. Certain activities, such as financial services or investment management, may require additional licensing from the relevant regulatory authorities.

What documents are needed for registration and licensing in ADGM?

To register and obtain a license for an ADGM foundation, the following documents are typically required:

• Foundation charter and bylaws
• Proof of the endowment amount
• Details of the foundation’s beneficiaries and purpose
• Personal information of the foundation’s council members and directors
• A business plan outlining the foundation’s activities and operations

Step-by-step process for setting up an ADGM foundation

The steps for registering and licensing of an ADGM foundation involve the following steps:

1. Submission of the required documents to the ADGM Registration Authority.
2. Payment of the relevant registration and licensing fees.
3. Assessment of the foundation’s activities to determine if a license is required.
4. Review of the submitted documents by the Registration Authority.
5. Issuance of the registration certificate and license upon approval.

Tax advantages and exemptions for ADGM foundations

One of the key benefits of setting up a foundation in ADGM is the favorable tax regime. ADGM is a tax-free zone, meaning that foundations established within its jurisdiction are exempt from corporate tax, income tax, capital gains tax, and withholding tax. This can result in significant cost savings and increased flexibility in managing your assets.

Additionally, ADGM foundations are not subject to any exchange control restrictions, allowing for seamless movement of funds in and out of the jurisdiction. This can be particularly advantageous for individuals and organizations looking to expand their global presence and diversify their investments.

How to Start ADGM Foundations with us

When it comes to starting ADGM foundations, choosing the right partner is crucial. Our team not only has the experience and expertise needed to navigate the complexities of setting up a foundation in ADGM but also the authority and trust that comes with a proven track record of success.

1. Initial Consultation: The first step in starting your ADGM foundation with us is to schedule an initial consultation with our team. During this meeting, we will discuss your goals and objectives for the foundation, as well as any specific requirements you may have.
2. Legal Documentation: Once we have a clear understanding of your needs, we will assist you in preparing all the necessary legal documentation for setting up the foundation in ADGM. This includes drafting the foundation’s charter, bylaws, and other key documents.
3. Registration Process: Our team will then guide you through the registration process with the ADGM authorities. We will ensure that all the required forms are completed accurately and submitted promptly.
4. Compliance and Regulations: Adhering to the regulatory requirements in ADGM is essential for the success of your foundation. Our experts will help you navigate the compliance landscape and ensure that your foundation meets all necessary regulations.
5. Bank Account Opening: We will assist you in opening a bank account for your ADGM foundation. Our team has strong relationships with local banks and will help you choose the right banking partner for your organization.

Benefits of Starting ADGM Foundations with Us

• Expert Guidance: Our team of experienced professionals will provide you with expert guidance throughout the entire process of setting up your foundation in ADGM.
• Efficient Process: We have streamlined our processes to ensure a quick and efficient foundation setup, saving you time and effort.
• Tailored Solutions: We understand that every organization is unique. That’s why we offer tailored solutions to meet your specific needs and requirements.
• Ongoing Support: Our commitment to your success doesn’t end once the foundation is established. We offer ongoing support and advice to help you grow and thrive in the ADGM environment.

In conclusion, starting ADGM foundations with us is a smart choice for organizations looking to establish a strong presence in the region. With our experience, expertise, authority, and trust, we will ensure that your foundation setup is seamless and successful. Get in touch with us today to begin the process and take the first step toward building your foundation in ADGM.

Connect with Neeja Corporate Services

Are you looking to start your company in Abu Dhabi but feeling overcome by the registration process? Don’t worry, you’re not alone. Setting up a business in a foreign country can be challenging, but with the right guidance and support, it doesn’t have to be a stressful experience. Neeja’s business setup services offer complete support and serve as a one-stop shop for company setup in Abu Dhabi. We provide a wide range of value-added services, such as ADGM Foundations, and VAT registration. Over the years, we have successfully advised many new entrepreneurs to make their business in UAE dreams a reality.

To book a free consultation, call on +971 43243031. You can also send a WhatsApp message at +971 50 465 2843. To connect over email, send us your query at [email protected].

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