Abu Dhabi Global Market (ADGM), the international financial center in Abu Dhabi, has confirmed the launch of its own foundations regime.
Understood to be the first regime of its kind offered in the United Arab Emirates, it enables local advisors to use ADGM foundations as an alternative to trusts and corporate vehicles for family succession planning, tax planning, asset protection, wealth management, and corporate structuring.
Unlike trusts, foundations are incorporated as a legal entity with their own distinct attributes and legal personality. In this respect, foundations are similar to companies but without shareholders. ADGM said private banks have positively endorsed the opportunity to use foundations in ADGM as a core component of their structuring for clients. Previously, foundations from outside the region had to be used.
Commenting on the new foundations regime, Dhaher Bin Dhaher Al Mheiri, CEO of the Registration Authority of ADGM, said: "ADGM has been working closely with local and international stakeholders and [a] market panel of experts to understand their needs and develop a foundations regime that addresses the unique requirements of families and asset owners in Abu Dhabi, regionally and globally. The new foundations regime, together with the existing world-class legislative and regulatory framework, adds to ADGM's extensive corporate and legal structure offerings. This is part of ADGM's ongoing commitment to enhance its ecosystem and serve the needs of its stakeholders by introducing innovative and efficient business solutions."
ADGM is an international financial center established in 2013. It offers a range of attractive benefits to firms, including exemption from taxes guaranteed for 50 years, and relaxed rules on the repatriation of profits. ADGM permits 100 percent foreign ownership.
By Courtesy of Lowtax.net