UAE foundations offer a flexible structure for asset protection, estate planning, wealth management, and charitable purposes, specifically designed for high-net-worth individuals, families, and businesses. With RAK ICC where Chrysalis acts as a certified foundations registered agent, a major corporate registry in Ras Al Khaimah, UAE, foundations allow for robust asset management under a secure legal framework.
- Foundation Regulations: RAK ICC foundations are governed by the RAK ICC Foundation Regulations, which offer a straightforward, flexible legal structure while adhering to international best practices.
- Separate Legal Entity: RAK ICC foundation is legally distinct from its founder, meaning it has the ability to hold assets, enter contracts, and manage its own obligations, making it an ideal tool for both personal and business purposes.
Founder: The individual or entity that establishes the foundation and can define the foundation’s charter and by-laws, outlining how assets should be managed and distributed.
Council: Similar to a board of directors, the council oversees the foundation's administration and decisions in line with the founder’s instructions.
Guardian (Optional): Acts to check on the council’s power, ensuring the council adheres to the foundation’s objectives, particularly useful in family or charitable foundations.
Beneficiaries: Foundations can be established with specified beneficiaries or for a particular purpose (such as charity) without individual beneficiaries.
- Asset Protection: RAK ICC foundations can effectively shield assets from claims and creditors, helping families preserve wealth across generations.
- Succession Planning: The foundation can distribute assets according to the founder’s wishes, bypassing probate and avoiding disputes over inheritance.
- Wealth Management: Useful for holding assets, managing investments, and creating continuity for family wealth, especially in multinational contexts.
- Charitable Purposes: Foundations can be set up solely for charitable aims, with assets dedicated to philanthropic activities or causes.
- Tax Benefits: RAK ICC foundations benefit from Ras Al Khaimah’s tax-neutral environment, with no income, capital gains, or inheritance taxes.
- Privacy: RAK ICC offers high levels of confidentiality; foundation details are not publicly disclosed, which is ideal for families and businesses valuing discretion.
- Flexible Structure: RAK ICC foundations offer flexibility in governance, allowing founders to tailor the foundation's rules to meet specific needs for wealth and asset management.
- No Requirement for a Local Sponsor: Unlike some other UAE jurisdictions, RAK ICC foundations can be fully owned by foreigners without a local partner or sponsor.
Requirements: Establishing a foundation with RAK ICC generally requires a founder, a council, and a registered agent. The registered agent must be licensed within the UAE to handle RAK ICC foundations.
Costs: RAK ICC foundations are cost-effective compared to other UAE jurisdictions, with relatively low setup and annual renewal fees.
Process: The foundation charter and by-laws are drafted, registration is completed through RAK ICC, and a registered office in the UAE is required, typically provided by Chrysalis being the effective registered agent.
