RAK ICC Foundation Setup Services by Juriszone
Juriszone makes establishing RAK ICC (Ras Al Khaimah International Corporate Centre) Foundation simple and effective. We combine local expertise with global knowledge to offer personalized solutions that meet UAE regulations and international standards. Our services cater to high-net-worth individuals (HNWIs) seeking asset protection, wealth management, and succession planning using RAK ICC’s strong legal framework. Whether you want to secure family wealth for future generations or provide international investors with a trusted platform, we ensure maximum confidentiality and professional service to safeguard your legacy.
What is RAK ICC?
RAK ICC (RAK International Corporate Centre) is a corporate registry in Ras Al Khaimah, UAE, providing a legal framework for international business. RAK ICC Foundations offers legal entities for asset protection, succession planning, and philanthropy. It operates with legal separation from its founders through a council-administered structure.
Legal Framework and Regulations
The Ras Al Khaimah International Corporate Centre (RAK ICC) operates under a robust legal framework established by Emiri Decree No. 5 of 2019, which governs the RAK ICC Foundation Regulations 2019. These regulations are enacted under UAE federal law, ensuring compliance with both the broader UAE legal system and international standards.
Key Features of RAK ICC Foundations
Legal Personality
Operates as a separate legal entity, distinct from its founder(s), enabling independent rights and obligations.
Flexible Governance:
Allows customized structures with councils, guardians, and beneficiaries tailored to specific needs.
Asset Protection:
Shields assets from personal liabilities while maintaining control.
No Corporate Tax:
Operates tax-free in the UAE for enhanced cost-efficiency.
Confidentiality:
Provides a high level of privacy with non-public records of beneficiaries.
Perpetual Existence:
Ensures the foundation remains active indefinitely unless dissolved.
Broad Holding Capabilities:
Can own shares, hold operating companies, and manage diverse asset classes.
Trust-Like Features:
Combines corporate benefits with trust-like flexibility for fiduciary arrangements.
Succession Planning:
Offers continuity of asset management beyond the founder’s lifetime.
Regulatory Support:
Governed by RAK ICC’s internationally recognized regulatory framework.
Comparing RAK ICC Foundation with Other Jurisdictions
| Feature | RAK ICC Foundation | RAK ICC Foundation ADGM Foundation | DIFC Foundation |
|---|---|---|---|
| Legal Framework | Common law principles adapted within Ras Al Khaimah | ADGM common law framework modeled after English law | DIFC common law-based legal system |
| Cost Efficiency | Generally more cost-effective | Higher setup and maintenance costs | Higher setup and maintenance costs |
| Governance Structure | Flexible, emphasizing simplified procedures and administrative ease | Flexible governance model | Flexible governance model |
| Asset Holding & Succession Planning | Supports asset protection, holding structures, and robust succession planning. Strong privacy measures. | Supports asset protection, holding structures, and robust succession planning | Supports asset protection, holding structures, and robust succession planning |
| International Appeal | Targets a broader audience with straightforward solutions for international business and private clients | More aligned with institutional investors and financial service providers | Attracts clients focused on regional and global financial transactions |
Uses of RAK ICC Foundations
Enhanced succession planning and asset protection
Ensures smooth wealth transfer and shields assets from external risks.
Providing a robust governance structure
Establishes clear rules and processes for foundation management.
Guardian oversight
Adds an additional layer of control and accountability.
Distinct legal personality
Separates liability, ensures control over assets, and guarantees perpetual existence beyond the founder’s lifetime.
Managing and holding founders’ assets for qualified recipients
Protects and manages assets for beneficiaries.
Distributing dividends from operating companies
Facilitates efficient profit distribution.
Holding shares in RAK ICC companies
Centralizes share ownership for better control.
Holding assets
Serves as a secure vehicle for asset management.
Holding operating companies
Simplifies the administration of business entities.
Family philanthropic purposes
Supports charitable goals while maintaining family values.
Here’s a detailed step-by-step guide for setting up a RAK ICC Foundation
1. Preparation
- Gather necessary documents (passport copies, proof of address)
- Decide on foundation structure and objectives
- Choose the foundation name (subject to approval)
2. Engage Professional Services
- Hire a registered agent familiar with RAK ICC regulations
- They will guide you through the process and handle documentation
3. Draft Foundation Charter
- Outline foundation’s purpose, beneficiaries, and governance structure
- Define roles of founder, guardian, and council members
4. Submit Application
- File application with RAK ICC
- Include proposed foundation name, charter, and supporting documents
5. Pay Registration Fees
- Submit required fees to RAK ICC
- Fees vary based on foundation structure and services
6. Undergo Due Diligence
- RAK ICC conducts background checks on founder and key personnel
- Provide additional documentation if requested
7. Receive Approval
- RAK ICC reviews application and issues approval
- Receive certificate of registration and incorporation documents
8. Appoint Foundation Council
- Select and appoint council members as per the charter
- Hold initial council meeting to establish operating procedures
9. Open Bank Account
- Choose a UAE bank for the foundation’s accounts
- Complete the bank’s due diligence process
10. Transfer Assets
- Transfer designated assets to the foundation
- Ensure proper documentation of all transfers
11. Implement Compliance Procedures
- Establish ongoing compliance and reporting mechanisms
- Set up record-keeping systems for foundation activities
This process typically takes 2-4 weeks, depending on the complexity of the foundation structure and the efficiency of document preparation.
To register a RAK ICC Foundation, the following documents are typically necessary
1. Foundation Charter:
This key document outlines the foundation’s purpose, structure, and governance[1].
2. Passport Copies:
Certified copies of passports for the founder, council members, and beneficiaries[1].
3. Proof of Address:
Recent utility bills or bank statements as proof of address for key individuals[1].
4. Due Diligence Documents:
Background information on the founder and key personnel for compliance checks[1].
5. Application Form:
A completed RAK ICC Foundation application form[1].
6. Resolution:
If the founder is a corporate entity, a board resolution authorizing the foundation’s establishment[1].
7. Foundation Council Details:
Information about proposed council members, including their qualifications[1].
8. Beneficiary Information:
Details of intended beneficiaries, if applicable[1].
9. Asset Declaration:
A list of assets to be transferred to the foundation[1].
10. Professional References:
Letters of reference may be required for key individuals[1].
These documents are essential for the registration process, ensuring compliance with RAK ICC regulations and facilitating a smooth setup of the foundation.
To ensure compliance with RAK ICC Foundation regulations during the registration process, follow these key steps:
1. Engage Professional Services: Engage a RAK ICC registered agent familiar with RAK ICC regulations to guide you through the process[1].
2. Prepare Accurate Documentation: Gather and submit all required documents, including:
- Foundation Charter outlining purpose, structure, and governance
- Certified passport copies of founder, council members, and beneficiaries
- Proof of address for key individuals
- Completed RAK ICC Foundation application form[1]
3. Conduct Due Diligence: Provide comprehensive background information on the founder and key personnel for compliance checks[1].
4. Draft a Compliant Charter: Ensure the Foundation Charter aligns with RAK ICC regulations, clearly defining roles, governance structure, and objectives[1].
5. Appoint Qualified Council Members: Select council members who meet RAK ICC requirements and can fulfill their fiduciary duties[1].
6. Declare Assets Transparently: Provide a clear list of assets to be transferred to the foundation[1].
7. Follow Application Procedures: Submit the application with all required documents and fees to RAK ICC[1].
8. Respond Promptly: Be prepared to provide additional information or documentation if requested during the review process[1].
9. Establish Compliance Mechanisms: Set up ongoing compliance and reporting procedures to maintain adherence to regulations post-registration[1].
By meticulously following these steps and working closely with a professional advisor and registered agent, you can ensure compliance with RAK ICC Foundation regulations throughout the registration process.
RAK ICC Foundations have several real-life applications, particularly in asset protection and wealth management
1. Estate Planning: Foundations are used to facilitate smooth wealth transfer across generations, avoiding potential inheritance disputes[1].
2. Asset Protection: High-net-worth individuals use foundations to safeguard assets from potential creditors or legal claims[1].
3. Philanthropic Endeavors: Foundations can be structured to support charitable causes while maintaining control over asset distribution[1].
4. Business Succession: They provide a framework for orderly business succession, ensuring continuity of family-owned enterprises[1].
5. Investment Management: Foundations serve as vehicles for managing diverse investment portfolios with tax efficiency[1].
6. Privacy Protection: Clients use foundations to maintain confidentiality in their financial affairs, which is crucial for some high-profile individuals[1].
These applications demonstrate the versatility of RAK ICC Foundations in addressing various financial planning and asset management needs for individuals and businesses.
The RAK ICC Foundation has a specific structure designed to provide flexibility and protection for assets. Here are the key elements of its structure:
1. Legal Framework
The RAK ICC Foundation operates under UAE law and RAK ICC Regulations, providing a robust legal structure for asset protection and financial planning[1].
1
2. Key Components
- Founder: The individual or entity establishing the foundation
- Foundation Council: Manages the foundation’s affairs and assets
- Beneficiaries: Individuals or entities who benefit from the foundation
- Guardian: Optional role to oversee the council’s activities
2
3. Essential Features
- Legal Personality: Operates as a distinct legal entity
- Perpetual Existence: Can continue indefinitely unless dissolved
- Flexible Structure: Allows for customizable governance and asset management[1]
3
4. Governance
The Foundation Council is responsible for:
- Managing assets
- Making distributions to beneficiaries
- Ensuring compliance with regulations
- Fulfilling the foundation’s objectives
4
5. Asset Management
- The foundation can own and manage various types of assets
- Assets are protected from personal liabilities of the founder or beneficiaries
5
This structure provides a balance of control, protection, and flexibility, making the RAK ICC Foundation an effective tool for wealth management and asset protection.
Advantages of RAK ICC Foundations
- Internationally compliant Registry
- Robust governance structure
- Attractive tax regime effective in the UAE
- No requirement to file or audit accounts – the company otherwise remains
- Subject to RAK ICC AML requirements set out in RAK ICC Business Companies
- Regulations 2018
- Possibility to migrate to RAK ICC from overseas
- Low registration and administrative costs
- Governance
- Perpetual concept
- Flexibility with beneficiary classes
Frequently Asked Questions
Digital asset succession in RAK ICC Foundations involves secure wallet management protocols to ensure asset safety, private key succession planning to transfer access securely, a digital asset inventory system for proper documentation, custody transfer procedures to manage asset ownership, and multi-signature governance for added security in decision-making.
RAK ICC Foundations ensure Shariah compliance by appointing a mandatory Shariah Board for oversight, conducting regular compliance reviews of assets, distributing profits according to Islamic principles, and performing annual Zakat assessments. Documentation includes board resolutions, certification, distribution policies, and compliance reports.
Conflicts of interest among Council Members are managed through mandatory disclosure systems, independent reviews of potential conflicts, recusal procedures for affected members, alternative decision-making protocols, and detailed documentation requirements to ensure transparency and governance compliance.
If beneficiaries cannot be located or become incapacitated, contingency measures include implementing dormant beneficiary protocols, appointing alternative beneficiaries as per the foundation’s charter, initiating court intervention if necessary, preserving assets for future claims, and employing tracing mechanisms to locate beneficiaries.
RAK ICC Foundations are effective for family business restructuring by enabling generational transition planning, establishing business continuity frameworks, integrating family governance structures, transitioning to professional management, and coordinating family councils to ensure seamless operations and clear succession.
Emergency dissolution of a RAK ICC Foundation involves documenting the triggering event, convening an emergency council meeting, implementing asset preservation measures, notifying all beneficiaries, and adhering to regulatory compliance steps to ensure the orderly wind-down of foundation operations.
RAK ICC Foundations manage international sanctions compliance through monthly asset screenings, real-time transaction reviews to ensure no violations occur, and quarterly beneficiary verification with KYC updates. Due diligence ensures compliance with global sanctions and regulatory requirements.
For international conflicts, RAK ICC Foundations offer dispute resolution mechanisms such as arbitration at the RAK ICC Arbitration Center, international mediation for amicable settlements, cross-border enforcement for judgments, emergency arbitration for urgent matters, and interim relief measures to protect assets or rights during disputes.