Foundations Regime

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What are the benefits of an ADGM foundation?

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ADGM’s Foundations Regime is the first in the UAE, offering the local private and corporate community an international product for a variety of functions including wealth management and preservation, family succession planning, tax planning, asset protection and corporate structuring, without relying on foreign regulations and structures.

ADGM foundations offer a robust balance of client confidentiality and high standards of transparency under the ADGM’s internationally recognised legislative environment. International clients who seek to effectively manage and supervise their wealth and assets under a competitive and international jurisdiction will find ADGM foundations useful. ADGM foundations also serve as an alternative to trusts for financial planning and structuring.

Benefits of ADGM’s Foundations Regime:
  • Access to UAE’s DTTs (subject to the UAE Ministry of Finance Requirements)
  • Wealth Management
  • Robust governance features, with the Foundation Council acting in an equivalent manner to a board of directors. Council members’ duties are prescribed in the ADGM Foundations Regulations. The regime follow international best practice and sets a regulatory standard for the foundation council. This standard includes statutory duties similar to directors’ duties in companies’ law.
  • Assurance through Guardian oversight. The Guardian supervises the Foundation Council and ensures that it acts in accordance with the Foundation’s Charter and By-Laws. Appointment of the Guardian is compulsory upon Founder’s death and optional during Founder’s lifetime.
  • Distinct legal personality, unlike a Trust. Having a legal personality provides Foundations with the flexibility to enter into contracts and arrangements directly, as a company would be able to.
  • Separation of liability whilst maintaining control of assets. A Foundation is a distinct legal entity which allows for separation of liability between Founder and the Foundation.
  • Perpetual existence after the lifetime of Founder. Like a company, a Foundation is a perpetual concept, allowing arrangements to continue and therefore providing certainty after the Founder’s death.
  • Asset protection mechanisms to assist in protection from bankruptcy claims, claims in the event of divorce and from the effect of forced heirship rules.