How to Set Up a DIFC Foundation for Succession Planning in the UAE

1. How to Set Up a DIFC Foundation for Succession Planning in the UAE Succession planning has become a key priority for high-net-worth individuals and business owners in the UAE. As the region grows into a hub for global wealth, structuring assets to ensure long-term stability and legacy protection is critical. One of the most powerful tools for this purpose is the DIFC Foundation—a flexible and robust legal structure based in the Dubai International Financial Centre (DIFC). In this blog, we’ll walk you through how to set up a DIFC Foundationand why it’s a game- changer for succession planning in the UAE. What is a DIFC Foundation? A DIFC Foundation is a legal entity established under the DIFC Foundation Law No. 3 of 2018. It’s designed to hold and manage assets, protect wealth, and ensure smooth generational transfer—making it ideal for succession planning, asset protection, and philanthropy. Unlike traditional trusts, foundations in the DIFC offer full legal personality, giving them the ability to own assets, enter into contracts, and operate independently. Why Use a DIFC Foundation for Succession Planning? Here are key reasons why DIFC Foundations are becoming popular for legacy planning: •Control over succession: Define clear rules for how wealth and assets are passed on. •Asset protection: Shield personal or business assets from future risks or disputes. •Continuity: A foundation doesn’t cease to exist upon the founder’s death, ensuring uninterrupted management. •Confidentiality: The register of foundations is not available to the public. •Tax neutrality: DIFC offers a zero-tax environment for foundations with no withholding taxes or capital gains tax. Step-by-Step Guide: How to Set Up a DIFC Foundation 1. Appoint a Founder The process begins with the individual (or entity) setting up the foundation—called the Founder. The founder outlines the foundation’s purpose, governance, and beneficiaries in a document called the Charter. 2. Define the Foundation’s Purpose The foundation can be set up for:

2. •Succession planning •Family governance •Asset protection •Charitable purposes •Holding shares or investments 3. Draft the Charter and By-laws •Charter: A public document outlining the foundation’s legal name, objects, initial capital, and structure. •By-laws: A private document specifying detailed governance rules, roles of council members, rights of beneficiaries, etc. 4. Appoint the Council The Councilis responsible for managing the foundation’s operations. Think of it as the board of directors for a company. 5. Appoint a Registered Agent (if required) If the foundation has no physical presence in the DIFC, a registered agent licensed by the DIFC is required. 6. Submit Application to DIFC Authority You'll need to submit: •Completed application form •Charter document •KYC documents •Details of council members and founder •Payment of registration fee (around USD 200) 7. Foundation Registration and Certificate Once approved, the foundation will be listed on the DIFC public register (with limited public information), and you’ll receive a Certificate of Incorporation. Who Can Benefit from a DIFC Foundation? •Families with multigenerational wealth •Business owners planning succession •Expatriates in the UAE looking for asset protection •Philanthropic individuals wanting a structured way to give back •Investors with cross-border assets

3. Why Choose Avyanco UK to Set Up Your DIFC Foundation? At Avyanco UK, we specialize in helping families and entrepreneurs establish DIFC Foundations with clarity and compliance. Our team provides: •Expert advisory on succession planning and structuring •Assistance with charter and by-laws drafting •End-to-end foundation registration and documentation •Ongoing compliance and governance support Final Thoughts A DIFC Foundation offers a modern, secure, and legally sound way to manage your legacy in the UAE. With the right structure and professional guidance, you can ensure your wealth is preserved and transferred according to your wishes for generations to come. Ready to set up your DIFC Foundation? Contact Avyanco UK today to get started with your legacy planning journey. Reference URL - https://www.linkedin.com/pulse/how-set-up-difc-foundation-succession- planning-uae-erica-fernandes-rgo0c