ADGM Foundation Setup Services by Juriszone
Juriszone excels in establishing ADGM (Abu Dhabi Global Market) Foundations. We combine local insight with global expertise to design solutions that align with regional values and international standards. We offer customized wealth protection and succession planning solutions using ADGM’s common law framework. Whether preserving generational wealth for local families or providing global investors with a secure foundation, we ensure your legacy is safeguarded with unparalleled confidentiality and professionalism.
ADGM Foundations as an Alternative
ADGM foundations help families and High Net Worth Individuals manage business and investment interests across generations. They complement ADGM’s offerings, including holding companies and Special Purpose Vehicles, and are widely used by local families for business structuring and family office setups.
Benefits of ADGM Foundations
ADGM Foundations offer a range of advantages tailored to wealth preservation, operational efficiency, and governance. They are ideal for asset protection, succession planning, and consolidating family or corporate wealth while providing legal autonomy and perpetual existence.
Key Advantages
1. Operational Efficiency
Transferring ownership of assets to the foundation streamlines management and reduces costs. This approach simplifies administration and ensures tax efficiency by consolidating multiple assets under a single entity.
2. Clear Succession Planning
ADGM Foundations allow founders to establish detailed instructions for asset distribution. This ensures a smooth transition of wealth, prevents conflicts, and preserves the founder’s wishes across generations.
3. Unique Legal Structure
Operating as a hybrid of a trust and a company, ADGM Foundations offer legal autonomy with the ability to hold and manage assets directly. This structure combines the best aspects of flexibility and distinct legal personality.
4. Strong Governance Framework
Governance is upheld by a Foundation Council, supervised by a Guardian, ensuring the founder’s wishes are adhered to. Statutory duties equivalent to company directors ensure transparent management.
5. Separate Legal Entity
The foundation’s independent legal identity enables it to enter into contracts and manage liabilities. This separation of ownership and control enhances asset protection and operational flexibility.
6. Asset Protection
Firewall provisions safeguard assets against claims arising from bankruptcy, divorce, or forced heirship rules. Beneficiaries’ rights are preserved, ensuring assets remain secure from external legal threats.
7. Perpetual Existence
ADGM Foundations provide continuity by existing beyond the founder’s lifetime, ensuring ongoing asset protection and fulfillment of long-term objectives for future generations.
Why Choose ADGM for Foundations?
- Global Recognition: ADGM is a globally recognized financial center with a robust regulatory framework that attracts international investors.
- Digital Efficiency: Fully digital registration process streamlines setup and management.
- Migration Flexibility: Allows seamless migration of existing foundations into and out of its jurisdiction.
Establishing a Foundation in ADGM
1. Two Applicant Categories
Applicants are categorized as either “Exempt” or “Non-exempt,” determining whether they must appoint a Company Service Provider (CSP) to assist with the foundation’s application and ongoing management. This categorization streamlines the application process.
1
2. Exempt Applicants
Entities with substantial resources, experience, and robust governance policies within the UAE may qualify as Exempt applicants, bypassing the need for a CSP. Exempt applicants must provide evidence of their capability to manage the foundation independently.
2
3. Substantial Resources
Exempt applicants must provide evidence of substantial assets and operations within the UAE, demonstrating their capability to manage the foundation without external assistance. This evidence includes commercial licenses, asset lists, and organizational structures.
3
4. Governance Policies
Exempt applicants must showcase robust internal governance procedures and policies to qualify for exemption from appointing a CSP. These policies ensure compliance with ADGM regulations and demonstrate effective management practices.
4
5. Non-exempt Applicants
Non-exempt applicants who do not meet the exemption criteria are required to appoint an ADGM-registered CSP to handle the foundation’s application and ongoing management. This requirement ensures that non-exempt foundations receive professional support.
5
6. Application Process
The application process involves submitting the necessary documentation and application forms through ADGM’s digital registry, ensuring a streamlined and efficient setup. This process includes providing details of the Foundation Charter, By-Laws, Councillors, Beneficiaries, and Guardians.
6
ADGM Foundation Structure and Governance
1. Foundation Charter
The Foundation Charter outlines the foundation’s objectives, purpose, initial assets, and the structure of the Foundation Council, serving as the cornerstone of the foundation’s operations. It provides a clear framework for governance and management.
2. Foundation Council
The Foundation Council is responsible for managing the foundation’s assets, ensuring that the foundation’s objectives are met, and adhering to the Foundation Charter and By-Laws. The council’s duties include asset oversight and governance.
3. Guardian
The Guardian, an optional role during the founder’s lifetime and mandatory after their death, supervises the Foundation Council to ensure it acts according to the foundation’s Charter and By-Laws. This role provides an additional layer of oversight.
4. Beneficiaries
Beneficiaries are the individuals or entities designated by the Founder to receive benefits from the foundation’s assets as outlined in the Charter. The foundation’s governance structure protects their rights and entitlements.
5. Limited Public Disclosure
The foundation’s independent legal identity enables it to enter into contracts and manage
liabilities. This separation of ownership and control enhances asset protection and operational
flexibility.
ADGM as an International Financial Hub
1. Thriving Economy
ADGM benefits from Abu Dhabi’s robust and growing economy, making it an attractive destination for businesses and investors seeking a stable and prosperous environment. The region’s economic strength supports long-term investment and growth.
2. Business-Friendly Environment
ADGM is renowned for its business-friendly regulations, designed to attract global companies and investors by offering a secure and supportive environment for business operations. These regulations facilitate ease of doing business and investment.
3. World-Class Infrastructure
ADGM provides world-class infrastructure, including modern offices, global connectivity, and comprehensive business amenities, supporting companies and individuals operating within its jurisdiction. This infrastructure enhances operational efficiency and connectivity.
4. Access to Expertise
ADGM offers access to a network of leading professional advisors and financial institutions, providing essential support and expertise for businesses and foundations in its jurisdiction. This access enhances decision-making and strategic planning.
Get Started with Juriszone
Ready to establish your ADGM Foundation? Our process is designed to be straightforward and efficient:
Take the First Step
Contact our team of experts to begin your journey toward secure and efficient wealth management. We’ll help you create a foundation structure that protects your legacy and achieves your financial objectives.
Frequently Asked Questions
ADGM Foundations follow specific protocols for handling cryptocurrency and NFT assets, including using cold storage for secure asset storage, implementing multi-signature authorization for transaction approval, establishing wallet succession plans to ensure transferability, employing digital asset valuation methods for accurate reporting, and conducting regular security audits to prevent cyber threats.
ADGM Foundations support venture capital and startup investments by requiring due diligence protocols during seed funding, applying valuation frameworks for growth capital, and ensuring governance rights during series funding rounds. Risk management measures include portfolio limits, exit strategy planning, and investment caps to safeguard financial interests.
To address geopolitical risks, ADGM Foundations employ asset jurisdiction diversification to minimize country-specific exposure, secure political risk insurance to cover potential losses, activate emergency relocation protocols for movable assets, follow crisis management procedures to maintain operational stability, and implement stakeholder protection measures to reduce financial risks.
Art collections and luxury assets in ADGM Foundations are managed using authentication protocols to verify authenticity, specialized insurance to protect high-value items, specific storage requirements for preservation, valuation procedures for financial assessments, exhibition rights to manage public displays, and transportation security to prevent damage or theft during transit.
ADGM Foundations focusing on intellectual property rights must secure global registration for patents, ensure territorial coverage for trademarks, and enforce digital rights for copyrights. Monetization strategies include licensing frameworks, usage guidelines, and structured revenue models to maximize the value of intellectual property portfolios.
ADGM Foundations support carbon credit trading and environmental projects by adhering to strict verification standards, following regulated trading protocols, conducting environmental impact assessments for project validation, integrating credits into a verified registry for tracking, and monitoring compliance with global environmental standards.
ADGM Foundations manage sports and entertainment rights through a structured framework that includes rights acquisition, revenue distribution models, territorial licensing, content protection measures, and royalty tracking systems. These protocols ensure secure ownership, transparent revenue management, and protection from unauthorized use.
AI and machine learning assets in ADGM Foundations are governed through algorithm ownership rights to protect intellectual property, data protection protocols to ensure compliance with privacy regulations, commercialization strategies for licensing and monetization, ethics compliance to address regulatory concerns, and license management to regulate third-party use.