Foundation Setup in Dubai and UAE

Create a lasting legacy for your family and protect your wealth with our expert guidance on foundation setup in Dubai & the UAE.

An Overview

Why Set Up a Foundation in Dubai?

Setting up a foundation in Dubai or the UAE offers a flexible way to manage wealth, protect assets, and plan for the future. Whether for charitable or private purposes, Juriszone provides expert guidance through every step, ensuring compliance with local laws and offering benefits like asset protection and tax advantages. This allows clients to efficiently achieve their financial and personal goals.

  • Personalized Approach
  • Transparent Process
  • Local Knowledge

Foundation Setup Services Provided By Us

Our Comprehensive Foundation Setup Services

Consultation

1

Receive expert advice on UAE foundation laws and regulations.

Documentation Preparation 

2

Get assistance with all necessary paperwork and filings.

Licensing & Registration

3

Quick and easy process for obtaining required licenses

Governance Setup

4

Benefit from guidance on establishing a governance structure.

Why Choose Us?

Expertise

Leverage our years of experience in UAE foundation establishment.

Personalized Solutions

Benefit from a customized approach designed to meet your specific philanthropic goals.

End-to-End Support

Enjoy comprehensive assistance from the initial concept to full operation.

What

What is a Foundation?

In the UAE, a foundation is an independent legal entity that combines features of both corporations and trusts. It is commonly used for wealth management, asset protection, and succession planning. Here’s a breakdown of its structure and functions:

Structure

An Overview Of The UAE Foundation’s Structure

Founder

This is the individual or entity that initiates the foundation by providing the initial endowment and transferring assets to the foundation. The founder establishes strategic objectives and appoints the guardian.

Foundation

Acts as the central fiduciary entity, authorized to hold and manage the endowment. It ensures the stewardship of assets and distributes profits to beneficiaries according to its mission.

Default Beneficiary

Responsible for distributing the remaining endowment if there are no longer any beneficiaries.

Beneficiaries

Receive distributions from the foundation’s profits, as determined by the guardian.

Council Members

Function like a board of directors, managing the foundation’s operations. They make decisions on asset management and distributions.

Guardian (Optional)

Oversees council members to ensure alignment with the foundation’s purpose and legal obligations. The guardian also names beneficiaries and designees.

Assets

Include bank accounts, real estate, company shares, and other investments managed by the foundation.

Registered Agent

Handles administrative tasks, including compliance with local laws, documentation, and communication with regulatory bodies.

Types Of Foundation

Types of Foundations You Can Establish

1. Charitable

It is setup for charitable purposes and philanthropic activities, such as education, poverty alleviation, healthcare, or environmental protection. They receive donations from individuals, corporations, and other entities. They must have a clear charitable purpose outlined in the foundation’s charter or deed.

2. Non-Charitable

A private foundation or a family foundation is a legal entity for preserving and distributing wealth over generations. It benefits interests of individuals, families, or groups whose members and business are located in both common law and civil law jurisdictions.

They can be established for asset protection, wealth management, succession and inheritance planning, or a combination of reasons. It can be an alternative to will.

Additionally, private foundations can also undertake philanthropic activities enabling families to give back through a system. 

Advantages of Establishing a Trust in the UAE

A trust in the UAE is highly beneficial to the settlor and the beneficiaries in the following ways:

1. Asset Protection

  • UAE trusts offer protection against potential creditor claims, legal judgements, family disputes, political risks, and other unforeseen liabilities, helping safeguard them for the beneficiaries. Not being a legal entity, a trust cannot be sued or take any legal action.

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2. Succession Planning

  • Trusts help you plan the succession and inheritance of your assets, ensuring a smooth transfer of wealth to future generations, often without a probate process.
  • While establishing the trust, you can specify the asset distribution terms, ensuring correct distribution even after your death.

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3. Maintaining Confidentiality

  • UAE regulations ensure a high level of privacy in trusts by ensuring the confidentiality of the assets added to the trust, the distribution arrangement, and the details of the beneficiaries and trustees.
  • The AGDM and DIFC offer a robust framework for trusts based on English common law.

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4. Flexibility

  • When establishing a trust in the UAE, you can define the beneficiaries, wealth distribution, and duration of the trust, among other things.

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5. Tax Considerations

  • The UAE is a tax-friendly jurisdiction which doesn’t impose any tax on income or capital gains for trusts.

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6. Lifestyle Perks

  • With the golden visa, you and your family have access to good healthcare and schools in the UAE. They add to the high quality of life in the country.
  • Also, you can save money on taxes since the UAE doesn’t impose personal income tax or capital gains tax.

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  • UAE trusts offer protection against potential creditor claims, legal judgements, family disputes, political risks, and other unforeseen liabilities, helping safeguard them for the beneficiaries. Not being a legal entity, a trust cannot be sued or take any legal action.

  • Trusts help you plan the succession and inheritance of your assets, ensuring a smooth transfer of wealth to future generations, often without a probate process.
  • While establishing the trust, you can specify the asset distribution terms, ensuring correct distribution even after your death.

  • UAE regulations ensure a high level of privacy in trusts by ensuring the confidentiality of the assets added to the trust, the distribution arrangement, and the details of the beneficiaries and trustees.
  • The AGDM and DIFC offer a robust framework for trusts based on English common law.

  • When establishing a trust in the UAE, you can define the beneficiaries, wealth distribution, and duration of the trust, among other things.

  • The UAE is a tax-friendly jurisdiction which doesn’t impose any tax on income or capital gains for trusts.

  • With the golden visa, you and your family have access to good healthcare and schools in the UAE. They add to the high quality of life in the country.
  • Also, you can save money on taxes since the UAE doesn’t impose personal income tax or capital gains tax.

Regulations

UAE Foundation Legislation and Regulations

UAE foundations are governed by the ADGM, DIFC, and RAKICC, offering a modern and flexible legal framework.

DIFC Foundation

The DIFC Foundations Law (DIFC Law No. 3 of 2018), requires two council members for each foundation. Foundations must have a physical office in the DIFC to register. Appointing a registered agent and a guardian is optional but necessary for charitable foundations.

ADGM Foundation

The ADGM governed by the Foundation Regulations 2017, regulations require at least two council members for a foundation. If there is no surviving founder, appointing a guardian is mandatory. The foundation must also maintain a physical presence in the ADGM.

RAK ICC

According to the RAK ICC Foundations Regulations 2019, foundations must have a registered agent, at least two council members, and a physical presence in the UAE. While appointing a guardian is optional for regular foundations, it is mandatory for charitable foundations.

Structure

The Structure of a Foundation

  • Purpose-Driven

    Foundations in the UAE are designed for specific goals such as wealth preservation, asset protection, estate and legacy planning, or charitable endeavors. They cannot engage in commercial activities for profit.

  • Funding

    Often established and funded by a single individual or family for intended beneficiaries.

  • Governance

    Foundations are managed by a Council and operate according to their founding charter and by-laws.

  • Oversight (Optional):

    Guardian: May be appointed to ensure the Council acts in accordance with the foundation’s purpose.

    Registered Agent: Required to receive legal notices and official communications.

  • DIFC & ADGM

    • Familiar legal framework based on English common law.
    • Asset use must directly support the foundation’s purpose.
  • RAK ICC

    • Offers greater confidentiality with non-public registry.
    • Provides flexibility in how foundation assets are utilized.

Key Considerations for UAE Foundations

  • Location: Which free zone aligns best with your objectives?
  • Purpose: What are the specific goals of your foundation (estate planning, philanthropy, etc.)?
  • Control: How much oversight do you desire over asset use?
  • Confidentiality: Is maintaining a high level of privacy a priority?

Guide

How to Set Up a Foundation in the UAE

Combining knowledge with expertise and experience, an accounting firm is the best bet to help manage your accounting and tax filing as a business in Dubai. Here’s what we can offer:

Defining Foundation’s Purpose

Clearly state the purpose of the foundation, such as philanthropy, asset protection, or wealth management.

Choosing a Jurisdiction

Select a jurisdiction like the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), or Ras Al Khaimah International Corporate Centre (RAK ICC), each known for their specific legal frameworks and benefits.

Appointing a Registered Agent

Engage a registered agent to assist with the application and handle legal requirements.

Drafting the Foundation Charter and By-Laws

Create a charter detailing the foundation’s aims, beneficiaries, capital, and governance structure, which will serve as its foundational legal document.

Forming the Foundation Council

Appoint a minimum of two council members to oversee the foundation’s strategic management and governance. These members can be individuals or corporate bodies.

Establishing a Physical Presence

Set up a physical office within the selected jurisdiction, as mandated in DIFC, ADGM, and RAK ICC.

Appointing a Guardian

Mandatory for charitable foundations, a guardian ensures the council adheres to the foundation’s mission.

Completing Registration and Licensing

File the necessary documents with the jurisdiction’s regulatory authority to register the foundation and secure the licenses needed for lawful operation.

Maintaining Compliance and Reporting

Follow the jurisdiction’s regulatory requirements, including regular compliance audits and financial reporting.

Documents

1. The Foundation Charter is a document that outlines the foundation’s: Objectives, Beneficiaries, Capital, and Governance structure. It must be drafted with precision and clarity.

2. The Bylaws are a document that define: The functions and duties of the foundation’s council, The procedures for appointing and removing council members The decision-making processes The Bylaws complement the Charter and cover aspects not detailed in it.

3. The Proof of Identity and Address document includes: For individuals involved (e.g., founders, council members): Copies of passports Proof of address (such as a utility bill or residence certificate) For legal entities involved: Company documents such as articles of association Lists of directors and partners Any necessary translations or certifications.

4. The Application Form: Is issued by the relevant authority Needs to be completed and submitted as part of the registration process.

5. The Information on Founders and Members document details: The individuals or entities establishing the foundation Their roles.

6. The List of Activities document provides a description of the activities the foundation will undertake.

Difference

How does the incorporation process differ between DIFC, ADGM, and RAK ICC

Aspect DIFC ADGM RAK ICC
Purpose Asset protection, wealth management, philanthropy Asset management, succession planning, charitable activities Wealth planning, asset protection, family governance
Tax Implications Generally tax-exempt, specific rules apply Tax-neutral, no corporate or income tax Tax-neutral, no corporate or income tax
Beneficiaries Clearly defined beneficiaries, rights protected Flexible beneficiary definition, including discretionary trusts Beneficiaries can be individuals or entities
Asset Holding Capabilities Broad range of assets, including real estate Holds various assets, including financial instruments Can hold diverse assets, subject to local regulations
Governance Structure Flexible, can adopt various structures Council-based governance, with guardian for non-surviving founders Council-based governance, guardian optional
Transparency & Reporting Annual financial statements, information disclosure Regular reporting to financial services regulator Financial reporting and transparency obligations

Contact Juriszone Today To Begin Trust & Foundation Setup In UAE

FAQs About Foundation Setup in Dubai

Yes, a private foundation is a great tool for family wealth planning. It helps safeguard assets, manage wealth for future generations, and control the distribution of your estate. Foundations offer flexibility and protection for long-term wealth management.

A foundation is governed by a Founder, a Foundation Council to manage daily operations and Beneficiaries who receive benefits. Sometimes a Guardian is appointed to ensure proper oversight.

Yes, a foundation can be modified, converted, or dissolved in line with its charter and local laws. This requires following legal procedures, including filing applications and securing regulatory approvals.

A charitable foundation supports philanthropic activities, using its assets for public good, such as donations to charity. A non-charitable foundation is typically used for personal purposes like family wealth management, estate planning, or asset protection, benefiting specific individuals or businesses.

Yes, a private foundation in Dubai can hold real estate, shares, investments, and other valuable assets while benefiting from legal protection and confidentiality.

We focus exclusively on establishing private foundations in Dubai for families, designed for purposes such as asset protection, wealth management, estate planning, and charitable activities. Our services cover everything from the foundation’s initial setup and registration to ensuring full compliance with Dubai’s legal requirements.

The Dubai foundation setup process usually takes 2 to 6 weeks depending on your requirement and the type of foundation you want to setup