A company-and-trust hybrid with no shareholders, run by a council, sitting inside Abu Dhabi's financial free zone.
An ADGM Foundation is set up under the ADGM Foundations Regulations 2017. It sits somewhere between a company and a trust: no shareholders or members, but its own independent legal personality [16]. A council of at least two people runs it, much like a board, and council members owe their duties to the foundation itself, not to the founder or beneficiaries [5][6]. The registry side is quick (ADGM quotes about 3 to 5 days once it has everything it needs) [2]. The tax side is less automatic than the "free zone" label suggests: a UAE foundation is a taxable person by default, and the 0% rate is a conditional treatment, not a given [8][9].
Four features that separate an ADGM Foundation from a plain holding company.
The foundation holds assets in its own name under a Charter, with independent legal personality. Nobody owns shares in it [16].
Council members can be individuals or bodies corporate, and a council member may also be a founder. ADGM's registration guidance sets no residency requirement for them [1][5].
Two memberless wrappers, two very different tax and oversight set-ups.
| ADGM Foundation | Cayman Web3 Foundation | |
|---|---|---|
| Oversight body | Council of at least two; Guardian optional [1][2][5] | At least one Supervisor once memberless [13] |
| Tax on the entity | Taxable person under UAE corporate tax by default; 0% only if Qualifying Free Zone Person conditions are met, otherwise 9% [8][9][10] | 0% on income and capital gains [14] |
| Annual government cost | US$200 renewal per ADGM's FAQ; its fee overview shows US$500 for a DLT Foundation (incl. US$300 data protection fee) [2][3] | US$925/yr Companies Registry fee [13][15] |
| Public record | Charter public, By-Laws private; ownership record not public [4][5] | Ownership information held by the registered office, not a public register [13] |
Cayman suits a project that wants a 0% entity and a Supervisor-based model; ADGM suits founders who want an Abu Dhabi regulatory address and are happy to run the UAE tax analysis.
Every ADGM Foundation needs at least two council members, who can be individuals or corporate bodies. A corporate council member must supply incorporation documents and evidence of appointment [1][5]. Otonomos offers council member provision as an add-on (see Costs) [16].
UAE foundations are taxable persons by default. A Qualifying Free Zone Person pays 0% only on Qualifying Income and 9% on the rest, and breaching the conditions can cost the 0% treatment for at least five years [8][9][10]. Family foundations can apply for tax-transparent treatment, but only if they meet specific conditions [8]. Which route fits you is a question for a UAE tax adviser.
Every ADGM foundation needs a registered office in ADGM, either its own or through a registered agent [2]. ADGM's guidance also says setting up and maintaining a non-exempt foundation requires an ADGM-licensed Company Service Provider [1].
The record of beneficial owners must be kept current for the life of the foundation. Late notifications attract graduated fees of US$150 per month for up to three months, and false or misleading information is among the most serious breaches, with penalties of up to US$54 million [4].
What Otonomos charges to set one up. Government fees for the first year are inside the Starter Kit.
| STARTER KIT | |
|---|---|
| Government Incorporation Fee (one-time) | included |
| Incorporation (one-time) | included |
| Registered Agent and Local Address (annual) | included |
| Government Fee (annual) | included |
| Total | $9,000 |
| PACKAGES | |
|---|---|
| ADGM DAO Ready: Corporate Nominee Director (annual) | $4,800 |
| POPULAR ADD-ONS | |
|---|---|
| Provision of Council Member, ADGM Foundation (per year) | $11,900 |
| Bespoke Charter and By-Laws (from) | $10,200 |
| Corporate Nominee Director (per year) | $4,800 |
| Skyline Digital OTC account opening | $1,200 |
| Crypto Exchange Account Opening | $1,200 |
The order page has the live pricing, add-ons and checkout. This page was just the homework.
No. This product is an ADGM Foundation under the Foundations Regulations 2017 [16]. ADGM separately enacted DLT Foundations Regulations in October 2023, a regime aimed at DAOs and token projects with its own rules, including audited, published accounts [7]. If your project is token-driven, ask us which fits before you order.