How to set up a Foundation in Dubai
A sovereign legal structure to protect your wealth, plan succession and govern family assets with continuity, with Spanish-speaking advisors throughout. The Emirati alternative to a trust, with its own legal personality.
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How we create your foundation in the Emirates.
Eleven structured steps: from defining family objectives to transferring assets under the new structure.
- 01
Initial interview
We understand your objectives: succession, protection, family governance or philanthropy. We map beneficiaries and assets.
- 02
Optimal jurisdiction
We compare DIFC, ADGM and RAK ICC based on reputation, cost, confidentiality and applicable regulations.
- 03
Foundation type
Private, purpose, charitable or mixed. Each type addresses different governance needs and social objectives.
- 04
Drafting the Charter
We prepare the founding charter: name, purpose, founder, council, beneficiaries, powers and succession rules.
- 05
Drafting the By-Laws
We draw up internal regulations: decisions, distributions, replacement of bodies, dispute resolution.
- 06
KYC and due diligence
We prepare the file for the founder, beneficiaries, council members and protector. Source of funds documented.
- 07
Official application
We file with the chosen jurisdiction registry (DIFC, ADGM, RAK ICC) and pay the fees.
- 08
Regulatory approval
We liaise with the registrar, address queries and obtain the favourable resolution.
- 09
Certificate and registration
You receive the Certificate of Establishment. The foundation now exists as a legal entity and can acquire assets.
- 10
Asset transfer
We document the contribution of shareholdings, real estate, investments or IP to the foundation's assets.
- 11
Living governance
We support the council and the founder with renewals, minutes, regulatory reports and annual reviews.
Advantages of a foundation in the UAE.
Succession planning
Avoids the impact of forced heirship and wealth dispersion. Orderly generational transfer according to your own rules.
Asset protection
Assets legally separated from the founder and beneficiaries, protected against personal contingencies.
Stable governance
Council, protector and committees with clear decision-making rules, avoiding intergenerational conflicts.
Unlimited continuity
The Foundation can exist in perpetuity, accompanying generations without being wound up.
Reasonable confidentiality
Beneficiaries do not appear in public registers. UBOs are declared to the regulator, in line with international compliance standards.
Tax efficiency
Competitive taxation in the UAE, combined with tax treaties and participation exemption for dividends and capital gains.
Who should consider a foundation?
Families with wealth.
Families with significant assets looking for a structure that organises succession, governance and protection against third parties.
International entrepreneurs.
Entrepreneurs with groups of companies who want to separate wealth ownership from operational management.
Succession planning.
Individuals who want to leave clear rules for their heirs, avoiding disputes and accelerating transfer without tax illiquidity.
Philanthropic purpose.
Those seeking a structure with a charitable, educational or social purpose, managed with professional governance.
High earners.
Athletes, artists and public figures with high income concentrated in a few years who want to protect their wealth over the long term.
Real estate portfolio.
Holders of international real estate portfolios who want to centralise ownership and manage the transfer between heirs.
Financial portfolios.
Investors with diversified portfolios who want to ring-fence capital, distributions and legacies under a single legal structure.
Which structure fits your objective?
Vehicle comparison
| Criterion | Foundation | Holding | Trust |
|---|---|---|---|
| Legal personality | Yes (its own entity) | Yes (company) | No (fiduciary relationship) |
| Purpose | Succession and protection | Ownership and business | Succession and benefit |
| Bodies | Council + Protector | Board + Director | Settlor + Trustee |
| Continuity | Perpetual | Per articles | Determined |
| Ideal for | Families with a long-term vision | Corporate groups | Common law systems |
Foundation types available in the UAE.
Foundation types by jurisdiction
| Type | Primary jurisdiction | Typical use |
|---|---|---|
| Family Foundation | DIFC / ADGM | Family governance and orderly succession |
| Private Foundation | DIFC / ADGM / RAK ICC | Private asset protection for the founder |
| Purpose Foundation | ADGM / RAK ICC | Specific purpose (project, asset, mission) |
| Charitable Foundation | DIFC / ADGM | Philanthropic, educational or religious aims |
| Mixed Foundation | DIFC / ADGM | Combination of family and philanthropic objectives |
| Corporate Foundation | ADGM | Philanthropic or ESG arm linked to a company |
Investment and documentation required.
Indicative ranges
- Official fee (setup)
- 800 to 1,000 USD (depending on jurisdiction).
- Annual renewal
- 200 to 500 USD.
- Legal fees
- 15,000 to 35,000 AED depending on complexity.
- Total first year
- 25,000 to 60,000 AED approximately.
Required documentation
- Passports and KYC
- Founder, beneficiaries, council, protector.
- Founding charter
- Document covering purpose, bodies and beneficiaries.
- By-laws
- Internal operating regulations.
- Source of funds
- Origin of the assets contributed.
- Family structure
- Family tree and degree of kinship.
- Statement of purpose
- Long-term objectives and distribution rules.
Foundations with LorcaBase.
We design foundations as living architectures. We understand family, business and succession needs, and translate them into bespoke charters and by-laws.
Succession vision
We analyse forced heirship rules, the succession systems of your home country and compatibility with the Emirati Foundation before drafting the charter.
Optimal jurisdiction
We compare DIFC, ADGM and RAK ICC based on cost, regulation, reputation and ease of banking access.
Legal documentation
Charter and by-laws drafted by lawyers experienced in family offices. Documentation in both Spanish and English.
Asset transfer
We coordinate the contribution of shareholdings, real estate or accounts, respecting local rules in each country.
Ongoing governance
We support the council, meetings, minutes and annual regulatory reports.
Service in Spanish
Direct communication in your language, with a deep understanding of Latin American and Spanish civil law systems.
Complementary structures.
Holding company.
Complement the foundation with an operating holding for active management of business shareholdings.
Discover → VI · OffshoreOffshore company.
Lightweight vehicle for holding certain assets contributed to the foundation's assets.
Discover → IV · TaxationCorporate taxation.
Tax optimisation of the foundation structure and its operating subsidiaries at an international level.
Discover → III · CorporateCorporate services.
Visas, renewals, corporate governance and account opening for the family and related companies.
Discover →Key terms for setting up a Foundation in Dubai.
Quick reference of the legal and governance concepts you will encounter when setting up a Foundation in DIFC, ADGM or RAK ICC.
Foundation▸
Independent legal entity with its own legal personality. Hybrid structure between a company and a trust used to hold wealth, plan inheritances and protect assets.
Charter▸
Founding document. Constitutive document that defines name, purpose, founder, council, beneficiaries, powers and succession rules of the Foundation.
By-Laws▸
Internal regulations of the Foundation. Detail decisions, distributions, replacement of bodies and dispute resolution.
Founder▸
Person who contributes the initial assets and establishes the governance rules of the Foundation through the charter.
Council▸
Foundation Council. Governing body in charge of administering the assets and executing the founder's will according to the charter.
Guardian▸
Optional figure with supervisory power over the council. Provides an additional layer of control for the founder or beneficiaries.
DIFC▸
Dubai International Financial Centre. Common law jurisdiction in Dubai with its own courts. DIFC Foundations have the highest international reputation.
ADGM▸
Abu Dhabi Global Market. Common law jurisdiction in Abu Dhabi with its own courts. ADGM Foundations offer high reputation at slightly lower cost than DIFC.
RAK ICC▸
Ras Al Khaimah International Corporate Centre. Offshore jurisdiction in RAK. RAK ICC Foundations offer greater confidentiality and lower cost.
Trust▸
Fiduciary relationship between settlor and trustee with no legal personality of its own. Emirati Foundations are closer to European civil law than to a trust.
Settlor▸
Anglo-Saxon law figure equivalent to the founder in a Foundation. Contributes the assets to the trust.
Beneficiary▸
Person or entity that receives income, distributions or assets from the Foundation according to the charter and by-laws.
UBO▸
Ultimate Beneficial Owner. Individual who ultimately controls the entity at the end of the corporate chain. Mandatory declaration since 2020 also for Foundations.
Certificate of Establishment▸
Incorporation certificate issued by the registrar. Document that proves the legal existence of the Foundation.
AED▸
Emirati Dirham, official currency of UAE. Fixed exchange rate approximately 1 USD = 3.67 AED.
CSP▸
Corporate Service Provider. Company authorised to handle incorporations, licences and compliance. LorcaBase acts as CSP for its clients.
What people ask us most.
What is a Foundation in Dubai?
A Foundation is an independent legal entity with its own legal personality, used to hold wealth, plan inheritances and protect assets. It is similar to a trust but has its own corporate structure.
How does a Foundation differ from a Trust?
A Foundation has its own legal personality and is governed by its founding charter. A trust has no legal personality and is based on the fiduciary relationship between the settlor and the trustee. Emirati Foundations are closer to European civil law systems.
Where can a Foundation be established in the UAE?
Primarily in DIFC (Dubai), ADGM (Abu Dhabi) and RAK ICC (Ras Al Khaimah). Each jurisdiction has specific advantages in terms of costs, requirements and reputation.
How much does it cost to create a Foundation in Dubai?
Initial costs range between 800 and 1,000 USD in official fees, with legal fees between 15,000 and 35,000 AED. The typical total cost for the first year is between 25,000 and 60,000 AED, with annual renewals of 200 to 500 USD.
What documents do I need to create a Foundation?
Passport and KYC of the founder, beneficiaries and council members, description of the assets contributed, the charter (founding document), by-laws (internal regulations) and evidence of the source of funds.
How long does it take to set up a Foundation in Dubai?
Between 3 and 8 weeks, depending on the jurisdiction, the complexity of the assets contributed and the speed of approval of the charter and by-laws.
The trust of those who already work with us
Your wealth, protected with a foundation equal to your vision.
Book an initial consultation with no commitment. Together we will design the charter, by-laws and structure your family or group needs for the decades ahead.
Book a consultation →Dubai Marina, UAE