A foundation in the UAE can be set up by choosing a jurisdiction (DIFC, ADGM or RAK ICC), selecting a structure, appointing council members, and submitting an application to the relevant registrar. Foundation setup in Dubai is a popular option for individuals and families who want to protect their assets, plan succession, and avoid lengthy probate processes.
Benefits of Setting Up a Foundation in the UAE
Setting up a foundation allows families and investors to protect their assets, avoid probate delays, hold multiple assets under one structure, maintain confidentiality, and pay 0% Corporate Tax under certain circumstances.
These are the benefits of setting up a foundation in Dubai:
- Protect Your Assets: Hold real estate, investments, and business interests in a separate legal entity to help safeguard your wealth and manage risk.
- Avoid Probate Delays: As a separate legal entity, the foundation can own assets and operate independently, bypassing lengthy probate processes.
- Manage Family Wealth Efficiently: Bring multiple assets under one structure with clear rules for ownership, governance, and distribution.
- Maintain Privacy: Keep details of your assets, beneficiaries, and governance arrangements confidential.
- Eligible for 0% Corporate Tax: Foundations that do not generate any income are subject to no Corporate Tax.
If you are interested in setting up a foundation outside Dubai, compare DIFC vs ADGM Foundations to find the best option for you.
How to Set Up a DIFC Foundation: Step-by-Step
To set up a foundation in Dubai, choose the purpose of the foundation, select a legal structure, appoint council members, register an office, prepare and submit your documents, and open a bank account.
1. Decide the Foundation Framework
Choose the main purpose of the foundation. This could be protecting family wealth, planning succession, holding assets, managing business shares, or supporting charity.
2. Choose the Right Structure
Decide how the foundation will hold assets. It can hold assets directly, own a holding company, or sit above separate SPVs for different assets.
3. Appoint the Key People
You need to appoint a founder and at least two council members. You may also need a guardian, especially if the foundation has charitable goals or no named beneficiaries.
4. Arrange a Registered Office
Your foundation must have a registered office address within the jurisdiction you choose. Momentum can guide you through selecting the right option.
5. Prepare the Documents
Prepare the Charter and By-laws. These explain the foundation’s purpose, rules, council powers, beneficiaries, and how decisions will be made.
6. Submit the Application
You apply online through the official registry portal and submit the required documents, details of the council members, KYC information, and registered office details.
7. Get Approval
Once the registry reviews and approves your application, your foundation is officially registered and you can transfer your assets. After that, you can open a bank account and register for tax if needed.
How Much Does a Foundation Cost in Dubai?
A DIFC Foundation starts at $350 (AED 1,285.38) to set up along with a $5.40 (AED 20) data tool fee. Consulting with an expert can give you the exact cost based on your assets and foundation structure.
How Long Does it Take to Set Up a Foundation in Dubai?
A foundation typically takes around 2–3 weeks to register, provided your documents are prepared accurately and your structure does not need external approvals. Opening a bank account for the foundation can take a further 2–4 weeks.
Start a Foundation in Dubai With Momentum
Momentum is a leading corporate services provider in Dubai assisting families and investors with setting up foundations in Dubai. Our team will guide you through the entire process, including registering an office, preparing your paperwork, and overseeing the application process. Get in touch for a free consultation!
