Skip to content 
Foundation set up in Dubai refers to the process of establishing a legally recognized foundation within Dubai or other UAE jurisdictions, such as DIFC, ADGM, or RAK ICC. A foundation is a self-owned, independent legal entity without shareholders, designed for wealth management, asset protection, succession planning, and charitable purposes. It operates under a charter, is managed by a foundation council, and offers benefits such as tax efficiency, confidentiality, and legal asset protection.
When a foundation set up in Dubai, it operates as independent legal entities without shareholders or owners, making them ideal for high-net-worth individuals and businesses looking for structured asset management.
Common challenges in setting up a foundation in Dubai
While Dubai offers a robust legal framework for setting up DIFC, ADGM, and RAK ICC Foundations, there are several challenges that founders may face:
Complex regulatory requirements
- Navigating DIFC and ADGM’s common law framework can be challenging, especially for those unfamiliar with UAE regulations.
- Ensuring compliance with foundation laws, tax regulations, and reporting obligations requires professional guidance.
Documentation & legalization
- Founders must submit notarized, attested, and legalized documents (especially for foreign entities).
- Incomplete or incorrectly prepared documents can cause delays in registration.
Choosing the right jurisdiction
- DIFC, ADGM, and RAK ICC each have unique advantages, but choosing the right one depends on the foundation’s purpose (e.g., wealth planning, asset protection, corporate structuring).
- Understanding the cost implications, governance requirements, and flexibility of each jurisdiction is essential.
Bank account opening difficulties
- Opening a corporate or foundation bank account in the UAE can be time-consuming due to stringent Know Your Customer (KYC) and compliance checks.
- Some banks require a business plan, financial projections, and founder background checks before approval.
Ongoing compliance & reporting
- While UAE foundations benefit from zero corporate tax, compliance with economic substance regulations (ESR) and anti-money laundering (AML) policies is mandatory.
- Annual renewal fees and possible audits (depending on jurisdiction) need to be considered.
How Aston VIP can help
Aston VIP is a trusted corporate services provider in Dubai, specializing in foundation set up, corporate structuring, and wealth management. Here’s how we can assist:
Expert legal & regulatory guidance
- Aston VIP ensures full compliance with UAE’s regulatory framework and assists with foundation charter drafting and other legal formalities.
- Our team helps in choosing the best jurisdiction (DIFC, ADGM, or RAK ICC) based on the client’s objectives.
Seamless documentation & registration
- Aston VIP handles document preparation, notarization, and attestation, minimizing delays.
- We act as an authorized liaison with DIFC, ADGM, and RAK ICC authorities to expedite registration.
Bank account opening support
- We provide guidance on selecting the right UAE bank, preparing the necessary financial documents, and ensuring a smooth KYC approval process.
Registered agent & office Services
- For RAK ICC Foundations, Aston VIP acts as a registered agent, providing a compliant UAE office address.
- We also assist in setting up physical or virtual offices in DIFC and ADGM.
Ongoing compliance & administration
- Aston VIP offers annual renewal services, ESR compliance support, and AML advisory to keep foundations in good standing.
- We help with foundation governance, council appointments, and beneficiary management.
Why choose Aston VIP?
- Industry Expertise – Years of experience in UAE company formation & wealth structuring.
- Fast-Track Processing – Reduces registration timelines and avoids common legal pitfalls.
- End-to-End Support – From setup to compliance, ensuring smooth operations.
- Tailored Solutions – Personalized foundation structures based on client needs.
Our working hours: Monday to Friday, 9 AM – 6 PM GMT+4
Key features of running a foundation in Dubai
Independent legal entity
- A foundation in Dubai is a distinct legal entity separate from its founder.
- It does not have shareholders or owners, ensuring long-term stability.
Governance structure
- Managed by a Foundation Council, which oversees decision-making and administration.
- A Founder establishes the foundation and sets its objectives.
- A Guardian (optional) ensures the foundation follows its purpose.
Asset protection
- Assets transferred to the foundation become legally protected from third-party claims.
- Ideal for wealth preservation, estate planning, and inheritance structuring.
Tax efficiency
- Foundations in DIFC, ADGM, and RAK ICC benefit from zero corporate tax.
- No UAE personal income tax, capital gains tax, or inheritance tax.
Flexible purpose
- Can be set up for private wealth management, family succession planning, or charitable activities.
- Can also engage in non-commercial activities related to asset holding.
Confidentiality & privacy
- Details of the founder and beneficiaries are not publicly disclosed.
- Only regulatory authorities have access to key information.
Perpetual existence
- Unlike trusts or companies, a foundation can exist indefinitely unless dissolved as per its charter.
Global recognition & common law influence
- DIFC and ADGM foundations follow international common law principles, making them recognized worldwide.
Regulatory compliance
- Foundations must comply with anti-money laundering (AML) and financial regulations.
- Annual reporting and governance requirements vary based on jurisdiction.
"Opening a corporate or foundation bank account in the UAE can be time-consuming due to stringent Know Your Customer (KYC) and compliance checks."
Types of foundations in Dubai: a comprehensive guide
Dubai and the broader UAE offer various foundation structures tailored for wealth management, asset protection, succession planning, and corporate structuring. The three main foundation options available are:
- DIFC Foundation (Dubai International Financial Centre)
- ADGM Foundation (Abu Dhabi Global Market)
- RAK ICC Foundation (Ras Al Khaimah International Corporate Centre)
Each foundation type is governed by different laws and regulations, offering unique legal, tax, and operational advantages.
Get the most relevant information about business life in Dubai
DIFC foundation
A DIFC Foundation set up is ideal for wealth preservation, estate planning, and corporate structuring under common law principles. Governed by the DIFC Foundations Law No. 3 of 2018, this foundation structure provides strong legal protection and confidentiality.
Core attributes & benefits:
- Legal Independence – A separate legal entity with no shareholders.
- Asset Protection – Protects family wealth and corporate assets from external claims.
- Succession Planning – Ideal for passing on wealth across generations.
- Tax Efficiency – 0% corporate tax, no inheritance tax, and no capital gains tax.
- International Recognition – Based on common law, making it globally accepted.
- Flexible Governance – Managed by a Foundation Council and governed by a Charter and By-laws.
Best for:
- Family offices and high-net-worth individuals.
- Business owners looking for corporate restructuring.
- Philanthropic and charitable foundations.
Set-Up Time: 5-7 days with proper documentation.
ADGM foundation
The Abu Dhabi Global Market (ADGM) offers another robust foundation structure under the ADGM Foundations Regulations 2017. Before setting up, businesses and individuals should follow an ADGM Foundation checklist to ensure compliance.
Core attributes & benefits:
- Legal Autonomy – The foundation owns its assets independently.
- Common Law Framework – Based on English common law, ensuring international compliance.
- No Taxes – 0% corporate and personal tax.
- Wealth & Estate Planning – Perfect for inheritance structuring.
- High Confidentiality – Beneficiaries’ details remain private.
- Corporate Structuring – Can hold shares in businesses, real estate, and other assets.
ADGM foundation checklist:
- Foundation Charter & By-laws – Defines governance and asset management rules.
- Appoint a Foundation Council – Manages day-to-day affairs.
- Registered Address in ADGM – Must be within the jurisdiction.
- AML & Compliance – Must adhere to anti-money laundering (AML) regulations.
Best for:
- Private wealth management and estate planning.
- International investors looking for asset protection.
- Holding companies and business owners for corporate structuring.
Set-Up Time: 5-10 days, depending on regulatory approval.
RAK ICC foundation
The Ras Al Khaimah International Corporate Centre (RAK ICC) offers a cost-effective foundation structure, primarily used for offshore asset protection and holding investments. It operates under RAK ICC Foundation regulations, which provide a strong legal framework.
Core attributes & benefits:
- Flexible Purpose – Used for private wealth management, corporate structuring, and charitable activities.
- Offshore Asset Holding – Ideal for global investment portfolios.
- Tax-Free Environment – 0% corporate tax and no personal income tax.
- Confidentiality & Privacy – Protects beneficiary information.
- Affordable Setup – Lower costs compared to DIFC and ADGM foundations.
- No Local Ownership Requirements – 100% foreign ownership permitted.
Learn more about foreign ownership in Dubai.
Best for:
- International investors seeking offshore asset protection.
- Entrepreneurs looking for global wealth structuring.
- Business owners setting up RAK ICC offshore company formation.
Set-Up Time: 3-5 days, one of the fastest in the UAE.
RAK ICC offshore company formation
Apart from setting up a foundation, RAK ICC allows businesses to form offshore companies, which operate under RAK ICC offshore company formation laws.
Benefits of RAK ICC offshore companies:
- 100% foreign ownership.
- No local UAE office is required.
- 0% corporate and personal tax.
- Ability to hold shares in UAE and international companies.
- Full confidentiality of ownership structure.
Best for:
- Businesses looking for offshore asset holding.
- International trade companies.
- Holding companies for investments.
Comparison of DIFC, ADGM, and RAK ICC foundations
| Feature | DIFC Foundations | ADGM Foundations | RAK ICC Foundations |
| Jurisdiction | Dubai International Financial Centre (DIFC) | Abu Dhabi Global Market (ADGM) | Ras Al Khaimah International Corporate Centre (RAK ICC) |
| Governing Law | DIFC Foundations Law No. 3 of 2018 | ADGM Foundations Regulations 2017 | RAK ICC Business Companies Regulations 2020 |
| Legal System | Common law (based on English law) | Common law (based on English law) | Hybrid system (UAE Federal Law + English law influence) |
| Recognition | International recognition | International recognition | More regionally focused |
| Expected Registration Timeline | 7-14 days | 7-14 days | 7-10 days |
Structure, governance & costs
| Feature | DIFC Foundations | ADGM Foundations | RAK ICC Foundations |
| Founder(s) | Individual(s) or entity | Individual(s) or entity | Individual(s) or entity |
| Council Required? | Yes (minimum one member) | Yes (minimum one member) | Yes (minimum one member) |
| Guardian Required? | Yes, if there are discretionary beneficiaries | Yes, if there are discretionary beneficiaries | Yes, if there are discretionary beneficiaries |
| Registered Agent Required? | No | No | Yes (must appoint an agent within RAK ICC) |
| Disclosure of Founder? | No (not publicly available) | No (not publicly available) | No (not publicly available) |
| Initial Setup Cost (Approx.) | $4,000 – $8,000 | $3,500 – $7,500 | $2,000 – $5,000 |
| Annual Renewal Cost (Approx.) | $1,500 – $4,000 | $1,200 – $3,500 | $1,000 – $3,000 |
Taxation & compliance
| Feature | DIFC Foundations | ADGM Foundations | RAK ICC Foundations |
| Taxation | 0% corporate and income tax | 0% corporate and income tax | 0% corporate and income tax |
| VAT | 5% VAT applicable if conducting business in UAE | 5% VAT applicable if conducting business in UAE | 5% VAT applicable if conducting business in UAE |
| Audit Requirement? | No mandatory audit | No mandatory audit | No mandatory audit |
Purpose, use cases & overall cost consideration
| Feature | DIFC Foundations | ADGM Foundations | RAK ICC Foundations |
| Asset Protection | Strong legal framework | Strong legal framework | Strong legal framework |
| Family Wealth Planning | Common among high-net-worth individuals | Common among high-net-worth individuals | Cost-effective for smaller estates |
| Corporate Structuring | Suitable for holding companies | Suitable for holding companies | More offshore-oriented |
| Charitable Purposes | Can be established for charitable causes | Can be established for charitable causes | Can be established for charitable causes |
| Estate Planning | Frequently used for succession planning | Frequently used for succession planning | Frequently used for succession planning |
| Overall Cost Consideration | Highest cost due to premium jurisdiction | Moderate cost, slightly lower than DIFC | Most cost-effective option |
Key takeaways
- DIFC: Premium jurisdiction with strong international recognition; best for those prioritizing reputation and legal robustness.
- ADGM: Slightly more cost-effective than DIFC but offers similar benefits.
- RAK ICC: The most affordable option, ideal for those focused on offshore structuring with a UAE presence.
Choosing the right foundation in Dubai depends on your financial goals, business needs, and asset protection requirements.
- DIFC Foundation Set Up – Best for high-net-worth individuals and corporate wealth structuring.
- ADGM Foundation Checklist – Ideal for international investors requiring a common law framework.
- RAK ICC Foundation Regulations – Suitable for offshore asset holding and estate planning.
- RAK ICC Offshore Company Formation – Great for global businesses seeking offshore structuring.
"Each foundation type is governed by different laws and regulations, offering unique legal, tax, and operational advantages."
Step-by-step guide to foundation set up in Dubai
Setting up a foundation in Dubai is an ideal solution for wealth management, asset protection, succession planning, and charitable purposes. A foundation set up in Dubai ensures that assets are legally protected while offering tax benefits and confidentiality.
The process varies depending on the jurisdiction, but the core steps remain the same. Below is a detailed step-by-step guide to establishing a foundation in DIFC, ADGM, or RAK ICC.
Step 1: choose the right jurisdiction
Before proceeding with the foundation set up in Dubai, it is crucial to select the right jurisdiction based on your needs.
- DIFC Foundation – Ideal for wealth management, estate planning, and corporate structuring under a common law framework.
- ADGM Foundation – Suitable for international investors seeking global recognition and asset protection.
- RAK ICC Foundation – A cost-effective option for offshore asset holding and investment structuring.
Each jurisdiction offers strong legal protection, tax exemptions, and confidentiality, but the choice depends on your specific financial and business goals.
Step 2: define the foundation’s purpose
A foundation can be established for:
- Private wealth and estate planning – Protecting family assets for future generations.
- Philanthropy and charitable purposes – Supporting social or environmental causes.
- Corporate structuring – Holding shares in businesses and real estate investments.
- Asset protection – Shielding assets from creditors, legal claims, and disputes.
The purpose of the foundation must be clearly outlined in the Foundation Charter.
Step 3: identify key stakeholders
A foundation requires specific roles for governance and compliance:
- Founder – The individual or entity that establishes the foundation.
- Foundation Council – A governing body responsible for managing assets and operations.
- Guardian (optional) – Ensures the foundation follows its objectives and complies with the charter.
- Beneficiaries – The individuals or entities who will benefit from the foundation’s assets.
Step 4: draft the governing documents
To complete the foundation set up in Dubai, you need two main documents:
- Foundation Charter – Defines the foundation’s purpose, governance structure, and asset ownership.
- By-laws – Outlines the operational framework, distribution of assets, and responsibilities of the council.
These documents must comply with DIFC, ADGM, or RAK ICC regulations.
Step 5: register with the relevant authority
Once the foundation’s purpose and structure are defined, it must be registered with the appropriate regulatory body:
- DIFC Foundations – Registered with DIFC Registrar of Companies (ROC).
- ADGM Foundations – Registered with ADGM Registration Authority.
- RAK ICC Foundations – Registered with RAK ICC Authority.
Documents required for DIFC & ADGM foundation set up in Dubai
| Document | Purpose |
| Foundation Charter | A formal document outlining the foundation’s objectives, governance structure, and operational framework. |
| Founder’s Identification | Passport copies of individual founders or incorporation documents if the founder is a company. |
| Proof of Address | Utility bill or bank statement (issued within the last 3 months) for individual founders or corporate entities. |
| Council Members’ Details | Passport copies, proof of address, and CVs of the appointed council members. |
| Guardian’s Details (if required) | Passport copies and proof of address are required (only if discretionary beneficiaries exist). |
| Registered Office Address | Confirmation of a registered office in the respective financial free zone (DIFC or ADGM). |
| Statement of Activities | A brief description of the foundation’s intended activities and objectives. |
| Bank Reference Letter (sometimes required) | A letter from the founder’s bank verifying their relationship and financial standing. |
| Ultimate Beneficial Owner (UBO) Declaration | A document identifying the ultimate beneficiaries of the foundation (for compliance purposes). |
Additional requirements for RAK ICC foundations
For RAK ICC foundations, the following additional documents are required:
- Registered Agent Appointment Letter (since a local registered agent is mandatory).
- Memorandum of Wishes (optional but recommended) – a non-binding document outlining the founder’s intentions regarding asset distribution.
- Business Plan (if applicable) – required if the foundation will engage in structured financial activities.
Notarization & legalization
For foreign founders or entities:
- Documents may need to be notarized, attested, and legalized in the UAE (including authentication from the UAE Embassy in the home country).
Timeline for approval
- DIFC & ADGM: 7–14 days after submission of all required documents.
- RAK ICC: 7–10 days, provided a registered agent is appointed.
Step 6: open a bank account & transfer assets
After registration, the foundation can open a corporate bank account in the UAE or internationally.
- Transfer assets (cash, real estate, investments) into the foundation’s name.
- Appoint legal and financial advisors for wealth management.
This step ensures the legal protection of assets and smooth financial transactions.
Step 7: compliance & reporting
A foundation must adhere to UAE regulations, including:
- Anti-Money Laundering (AML) & Counter-Terrorist Financing (CTF) laws.
- Annual reporting and audits (if applicable).
- Economic Substance Regulations (ESR) – If engaging in relevant activities.
DIFC and ADGM foundations must maintain compliance records to remain legally active.
Step 8: governance & asset management
Once the foundation set up in Dubai is complete, it operates under the Foundation Council’s authority.
- Periodic Review – Ensure the foundation’s objectives align with legal requirements.
- Beneficiary Distributions – Manage fund allocations based on the charter’s guidelines.
- Legal Adjustments – Modify governance structure if needed.
A well-managed foundation provides long-term financial security, tax efficiency, and asset protection.
A foundation set up in Dubai is a strategic tool for individuals and businesses looking for tax-free wealth management, legal protection, and estate planning.
- DIFC Foundation – Best for high-net-worth individuals and business owners.
- ADGM Foundation – Ideal for international investors.
- RAK ICC Foundation – Perfect for offshore wealth structuring.
