Updated 13.08.2026
Legal structures · Private foundations
A private foundation in the UAEthe RAK ICC Foundation
A RAK ICC foundation is a legal person without members: the assets belong to it rather than to you and are distributed under its charter in favour of the beneficiaries. It holds company shareholdings, real estate in the UAE, accounts and portfolios. Gulf banks deal with this form every day.
- We register the foundation and open the UAE account as one project
- We say plainly where a foundation will not help — before you sign
- We prepare the source-of-funds file for the bank
The guide figures depend on the composition of the assets, the number of beneficiaries and the bank’s requirements. The exact quotation for the set-up and the annual upkeep is fixed before the agreement.
Applicability
Is UAE · RAK the right structure for your task
01 Main purpose
02 Assets
03 Beneficiaries
04 Bank account needed
The selector does not give a legal opinion: applicability is confirmed after the analysis of assets, family and tax residence.
The structure
What a RAK ICC foundation is
A foundation is the civil-law counterpart of a trust. The difference is fundamental: a trust is not a legal entity but a contractual construction; a foundation is a person in its own right with a registration number, a charter and governing bodies. It owns the assets itself, opens accounts and takes part in transactions.
After the transfer the property leaves your personal ownership: it is not divided on divorce, does not form part of the estate and is not directly available to personal creditors. That is both the protection and the weight of the decision.
The charter and the by-laws fix who the beneficiaries are, when and on what conditions they receive distributions, and what the foundation’s council may do. Through the guardian a lever of control is preserved.
As a legal person a foundation is more familiar than a trust in the Middle East and in Europe: it has a register extract, a charter and officers — the bank sees a construction it knows rather than an exotic import.
A RAK ICC Foundation may own shareholdings in UAE and foreign companies, real estate in the emirates through approved structures, accounts and investment portfolios.
Fit
Applying the structure: when it fits and when it does not
A plain filter before the work begins.
- Business or assets in the UAE and the Gulf: the foundation holds the shareholdings and the real estate
- You need a structure a bank will accept without explanations about «what a trust is»
- Succession under your rules instead of the default provisions
- UAE residence is planned or already held — the pairing strengthens the picture
- Consolidating the family’s assets from several countries in one person
- A dispute has already begun or a claim is expected: a late transfer can be set aside
- The aim is to hide assets from the tax authority: a foundation is declared, and we build only transparent structures
- You need the maximum court protection from creditors — then look at the Cook Islands and Nevis trusts
- You are not ready to carry the structure: a foundation has annual costs
Roles
The legal structure and the governing bodies
The construction resembles a trust, but the names and the status are different.
Transfers the assets and approves the charter. After the transfer they do not own them personally.
The governing body: it takes decisions on the assets and the distributions strictly within the charter. It may include you, but with limits — otherwise the structure looks like a sham.
The controlling figure: approves key decisions and may change the composition of the council. Your lever of influence.
The family, the children, you yourself. They receive distributions under the charter; their names are not disclosed publicly.
Protection
The legal limits of using the structure
We name the strengths together with the limits.
The foundation’s property is legally not yours: personal creditors cannot enforce against it directly and it is not divided on the founder’s divorce.
The assets do not form part of the estate: they pass under the charter, without courts or divisions between heirs.
The death or incapacity of the founder does not paralyse the assets — the council goes on working under the by-laws.
The form is set out in the emirate’s law and is familiar to UAE registrars and banks — fewer questions at every step.
The limits we state plainly: a foundation does not protect against claims that arose before the assets were transferred — such transfers can be set aside. It does not cancel the tax obligations of the founder and the beneficiaries and does not make assets invisible: the exchange of information and the duty to declare both operate. Criminal proceedings, sanctions regimes and maintenance lie beyond what any structure can do.
Prices
The options for the structure and the cost
The «from» prices are for a standard structure with a confirmed source of funds. The exact quotation is fixed by the agreement: there are no charges beyond the quotation.
from $9,500
Annual upkeep: upkeep thereafter from $5,500 a year
Consolidating accounts and portfolios in one person
Included
- Design and the foundation charter
- Registration of the RAK ICC Foundation
- The registered agent and the address — the first year
- The by-laws for the council’s work
- Government fees
from $14,500
Annual upkeep: upkeep thereafter from $8,000 a year
Business and real estate: the assets are held by an underlying company
Included
- Everything in the «Foundation» package
- A UAE company to hold the assets — formation and the first year
- The structure for holding the shareholdings
- The corporate documents
from $21,500
Annual upkeep: upkeep thereafter from $9,500 a year
Family capital with residence and an account in the UAE
Included
- Everything in the «Foundation + company» package
- The guardian: the control arrangement and the by-laws
- The source-of-funds file for the bank
- Opening an account with a UAE bank
- Support with obtaining the residence visa
The package does not include the bank’s own charges, the government visa fees, or legal work in the countries of the assets when real estate and shareholdings are transferred.
What drives the quote
The factors that affect the cost of the project
The packages cover the standard tasks. Here is what moves the budget — and it is counted before the agreement.
Accounts and shareholdings are simple. Real estate requires separate formalities and approvals.
Every country of assets adds a check and the formalities of the transfer.
Capital from several sources over a long period takes longer to assemble.
Banks differ in what they require; residence visas are counted separately, per person.
In the quotation we separate our own fee, the registrar’s charges and the government duties. The total is fixed by the agreement.
Cost of ownership
The cost of the structure over three years
A structure costs money not only when it is created: administration, reporting and bank compliance recur every year.
- Creating the structure and the documents
- Registration and government fees
- Opening the structure’s bank account
- The first year of administration
- Administration of the structure
- Reporting and mandatory notifications
- Bank compliance and the KYC refresh
- Support of distributions to beneficiaries
- Administration of the structure
- Reporting and mandatory notifications
- Bank compliance and the KYC refresh
- A review of the structure as circumstances change
What each year contains depends on the jurisdiction, the assets and the bank’s requirements. We prepare the three-year calculation together with the set-up quotation — before the agreement.
Tax
Taxation, reporting and disclosure
The UAE has no personal income tax, and a foundation outside commercial activity pays no corporate tax. But your own obligations are determined by your country of tax residence.
A foundation is a foreign structure: participation is declared, and where there is control the CFC rules apply. We design it so that the reporting is workable.
The corporate tax introduced in the country concerns commercial activity. A holding foundation without an operating business is as a rule outside it — we confirm the specifics for your structure.
The UAE takes part in the automatic exchange. Data on accounts goes to the beneficiaries’ country of residence — that is the norm.
If a move to the UAE is planned the tax picture changes in your favour. We work through the structure and the residence together.
We do not build arrangements to conceal income and we do not work with funds whose origin is not evidenced by documents.
Banking
The banking infrastructure of the foundation
A foundation without an account does not work. UAE banks accept this form, but they check the structure and the capital as strictly as anywhere else.
UAE banks are the main option for this structure; where necessary we add an account in Switzerland or Singapore.
Who the founder and the beneficiaries are, where the capital came from, what the foundation is for, who takes the decisions. The logic has to read from the documents.
The sale of a business, dividends, salary, an inheritance — each source is evidenced by a chain of documents.
Some UAE banks require a visit for signing. We plan the trip in advance and combine it with other tasks.
A refusal by a bank is not the end: we work out the reason and go to the next one with the file corrected. No one guarantees approval.
Documents
Documents and information for the establishment
We assemble the pack once — the same pack goes to the registrar and to the bank.
- 01Personal documents Passports and proof of address: the founder, the foundation council, the beneficiaries.
- 02The source of the capital Sale agreements, bank statements, dividend resolutions, tax returns.
- 03The list of assets What is going into the foundation: accounts, portfolios, real estate, shareholdings — with the title documents.
- 04Tax residence The countries and the taxpayer numbers of every party: the notifications and the reporting depend on them.
- 05The rules for distributions Who receives funds, when and on what conditions — these rules go into the foundation’s charter.
- 06Current obligations Claims, debts, guarantees and disputes: they determine whether the protection works at all.
No documents are needed at the first consultation — we work through the task in words.
Comparison
Compare UAE · RAK with other structures
| UAE · RAK | |
|---|---|
| Setup | from $9,500 |
| Annual | upkeep thereafter from $5,500 a year |
| Timing | 2-3 weeks |
| Typical use | Business or assets in the UAE and the Gulf: the foundation holds the shareholdings and the real estate |
Select up to two jurisdictions above. A detailed legal comparison is prepared for the specific task.
Process
The stages of establishing the structure
From the review of the task to a foundation with an account.
What is being consolidated, who the beneficiaries are, whether there are current disputes. We say plainly whether a foundation is needed.
1-2 daysThe charter, the composition of the council, the guardian’s powers, the rules for distributions.
3-5 daysThe pack on identity and the source of funds for the registrar and the bank.
1-2 weeksEstablishment of the foundation at RAK ICC, the charter, the appointment of the officers, the register extract.
2-3 weeksShareholdings, real estate, accounts — with correct formalities in the countries where they are held.
Opening the foundation’s account and setting the rules for the work that follows.
Comparison
A UAE foundation against the alternatives
The main parameters side by side, so that the choice is an informed one.
| UAE · RAK | Liechtenstein | Panama | A Nevis trust | |
|---|---|---|---|---|
| Form | Foundation | Foundation | Foundation | Trust |
| A legal person | Yes | Yes | Yes | No |
| Establishment | 2-3 weeks | 4-6 weeks | 2-3 weeks | 2-4 weeks |
| Cost from | $9,500 | $28,000 | $8,500 | $12,500 |
| Paired with residence | Yes, the UAE | Limited | No | No |
The comparison is as at the date the page was updated; applicability is confirmed once the profile has been reviewed.
FAQ
Questions and answers
A foundation is a legal person with a registration number, a charter and officers: it owns the assets itself and opens accounts. A trust is a contractual construction without the status of a person, and the trustee owns the assets. In practice a foundation is easier to explain to banks in continental Europe and the Gulf, while a trust is stronger in court protection from creditors.
As a rule yes, but with limits: if the founder runs everything single-handed and receives all the distributions, the structure looks like a sham and loses its point. The balance between control and separation is designed case by case.
Yes, the UAE works with citizens of Russia and Belarus. The establishment is declared in your country of tax residence; where there is control the CFC rules apply. We check the sanctions profile before the work begins.
Yes, through approved ownership structures. The particular procedure depends on the emirate and the type of property — we confirm it for your case before signing.
The registration of the foundation is handled remotely. A visit in person is more often needed to open the bank account and to obtain the residence visa — we plan one trip to cover everything at once.
From $5,500 a year for a basic foundation: the agent, the address, keeping the registration in good standing. With a company and an account it is higher. The exact figure is fixed in the quotation before the agreement.
Calculation
Structure and budget: UAE · RAK
Describe the assets, the family and the task. We will come back with the applicable structure, the setup budget and the annual upkeep.
A structure does not cancel existing creditor claims or the tax obligations of the settlor. Where the task cannot be solved lawfully, we say so before the engagement.