Foundation Services in UAE inquiry@dubaidebtrecovery.com 971-50-5071820

1. Foundation Services in UAE inquiry@dubaidebtrecovery.com +971-50-5071820 There are many ways to manage your estate in the UAE, but one of the most effective is to set up a foundation. Foundations can be used by high-net-worth individuals, families, and corporations in the UAE (including locals and ex-pats) to aid with wealth management and preservation, family succession planning, tax planning, asset protection, company structuring, and other difficulties. It provides greater certainty and comfort that the assets will be distributed by the Founder’s wishes, with the Foundation’s life span remaining eternally after the Founder’s death. The Sharia Law of the United Arab Emirates makes no provision for the establishment of a trust or foundation. Creating a foundation, on the other hand, is a tax-advantaged strategy to protect your assets. WHAT IS THE PURPOSE OF A FOUNDATION? A foundation is a legal entity distinct from the rest of the company. Unlike trust, which is a common-law concept, it is a civil law concept. Apart from the Founder’s riches as a separate legal entity, the Foundation’s founder bestows assets to the Foundation, which it will preserve in its name. There are no members or stockholders in the Foundation because it is self-owned. The foundation council manages the assets for the benefit of beneficiaries or in support of a cause or purpose by the Foundation’s charter and by-laws. - Dr. Michael Rich WHY USE FOUNDATIONS IN THE UNITED ARAB EMIRATES? Asset Protection can be provided by a foundation holding shares in subsidiary companies, separating legal ownership from usufruct rights. It can also be used for Estate Planning, in which the Founder gives the Foundation title to his assets and the Foundation distributes his money according to his wishes. If you have assets in multiple locations, such as real estate in Dubai or a holding company in Singapore, foundation formation is extremely beneficial. The following are the primary reasons for the use of foundations: Asset management, succession planning, and estate planning are all things that need to be considered. Asset protection from forced inheritance regulations, aggressive creditors, and hostile takeover bids; Long-term holding structure; To contribute to charitable and philanthropic endeavors. ESTABLISHMENT OF A FOUNDATION IN THE UNITED ARAB EMIRATES In the United Arab Emirates, a foundation consists of the parties listed below, as well as the relevant legal documents. A minimum of one (1) founder, either a natural person or a legal entity, is necessary. Once the Foundation is founded, a Founder normally has no additional rights to it, however, these may be incorporated into the By-Laws if necessary. The Founder must form the Council, which must consist of at least two (2) members, one of whom must be the Founder. The Council’s role is to oversee the Foundation’s operations in the same way as a board of directors would, while adhering to the Foundation’s Charter, By-Laws, and applicable laws. The Founder chooses a Guardian (which can be a human or a legal entity) to oversee the Council and must make reasonable measures to ensure that it fulfills its responsibilities. The Guardian may be given the authority to accept or reject decisions made by the Council in the By-Laws. A foundation will almost always hire a Registered Agent (although this is not essential except in RAK ICC), who must be properly licensed by the regime’s governing authority. All foundations are required to have a registered office, which is normally the Registered Agent’s address, though the administration and location of the Council, Founder, and Guardian can be anywhere. Documents Governing the Organization: The Constitution and By-Laws of a Foundation are the foundation’s governing papers. We recommend that these be tailored to the goals and interests of the Founder and the Foundation; we may assist with this. https://www.dubaidebtrecovery.com/practi ce-items/foundation-services-in-uae/