Setting up a DIFC Foundation in Dubai can be a strategic move for wealth management, estate planning, asset protection, and corporate structuring. The Dubai International Financial Centre (DIFC) offers a transparent and robust legal framework for foundations, making it an ideal choice for individuals, families, and businesses seeking long-term stability in the UAE.
In this blog, we’ll walk you through the step-by-step process to set up a DIFC Foundation, the key benefits, and what you need to consider before getting started.
What is a DIFC Foundation?
A DIFC Foundation is a legal entity that has its own legal personality, independent of its founder. It is typically used for:
- Asset protection
- Succession and estate planning
- Charitable causes
- Holding shares in family businesses
- Wealth structuring for high-net-worth individuals (HNWIs)
It is governed by the DIFC Foundations Law No. 3 of 2018 and regulated by the Dubai Financial Services Authority (DFSA).
Step-by-Step Process to Set Up a DIFC Foundation
Step 1: Define the Purpose of the Foundation
First, clearly define the foundation’s objective. It could be for private wealth protection, succession planning, corporate structuring, or philanthropic activities.
This purpose must be stated in the Charter and must align with DIFC Foundation regulations.
Step 2: Choose a Registered Agent
If the founder is not a DIFC-licensed person, appointing a DIFC-registered agent is mandatory. The agent will assist with document preparation and liaise with the DIFC Registrar of Companies (RoC).
Step 3: Prepare Required Documents
You’ll need the following:
- Charter of the Foundation – outlines the structure, governance, and purpose.
- By-Laws (optional) – contains internal governance details.
- Details of the Founder
- Details of the Council Members
- Registered Address in DIFC
- Guardian details (if required by the Charter)
Step 4: Submit Application to DIFC Registrar
Submit the application via the DIFC Client Portal. The submission should include:
- Foundation name (must end with "Foundation")
- Charter
- Personal identification documents (passport copies, Emirates ID, etc.)
- Proof of registered address
- Payment of the applicable registration fee
Step 5: Pay the Registration Fee
The standard fee for registering a DIFC Foundation is USD 200. Annual renewal and other associated costs may apply depending on your structure.
Step 6: Obtain Certificate of Registration
Upon approval, the DIFC Registrar will issue the Certificate of Registration, confirming the foundation is legally established and entered into the public register (except for confidential information).
Step 7: Maintain Annual Compliance
After setup, the foundation must:
- Submit Annual Returns
- Maintain accurate records
- Renew registration annually
- Update any changes in council members or the charter with the Registrar
Key Benefits of a DIFC Foundation
100% foreign ownership
Legal personality separate from the founder
Flexible and secure wealth structuring
Strong asset protection provisions
Ability to hold global assets
Confidentiality of beneficial ownership
Who Should Consider Setting Up a DIFC Foundation?
- High-net-worth individuals (HNWIs)
- Family offices
- Entrepreneurs looking to separate personal and business assets
- Business owners planning succession strategies
- Philanthropic organizations
Why Choose DIFC Over Other Jurisdictions?
The DIFC stands out due to:
- A globally recognized Common Law framework
- Robust regulatory environment under DFSA
- Full transparency and anti-money laundering compliance
- Excellent reputation in global finance
Final Thoughts
Setting up a DIFC Foundation is a powerful way to safeguard your assets, manage wealth across generations, and ensure privacy and control over how your legacy is managed. However, to ensure full compliance and a smooth process, it's advisable to work with a professional consultancy experienced in DIFC foundation setup.
Need Help Setting Up Your DIFC Foundation?
Get expert guidance from our team of professionals to structure and register your foundation efficiently. Contact Avyanco UK Limited today for a free consultation!
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