Foundation Setup in the UAE

When people think about asset protection in the UAE, companies and trusts usually come to mind. But there’s another option that’s been gaining traction: the foundation.

Unlike a company, it doesn’t have shareholders. A foundation holds assets separately, making it a go-to solution for entrepreneurs wanting to safeguard wealth and families that want to plan succession. No matter how you look at it, a foundation can be the simplest and most effective tool available.

If you’re interested in forming a foundation in the UAE, you’ll want to keep reading for inside information that can make your experience easy and rewarding.

The Advantages of Forming Your Foundation in the UAE

Why do so many clients choose a UAE foundation? The answer usually comes down to five key points:

Confidentiality
The names of beneficiaries and details of assets are not public. Families often prefer this because it allows them to plan quietly.
Asset Shielding
Assets inside the foundation are legally ring-fenced, which makes them much harder to reach in the event of disputes or claims.
Wealth Restructuring Without High Costs
Instead of building multiple offshore structures, in the UAE lets you organize assets under one umbrella, saving both money and time
Quick Setup and Renewals
Approval usually comes within a few business days, and renewals are simple. It’s not the drawn-out process people often fear.
Minimal Paperwork
Only a handful of documents are required, which is one reason many international investors find this jurisdiction attractive.

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Foundation Types Available in the UAE

The UAE offers three different foundation regimes. Each one has its own appeal:

RAK ICC
The RAK ICC is flexible, cost-effective, and popular with international investors. Many choose it for straightforward asset protection.
DIFC
Known as The Dubai International Financial Center, the DIFC is Dubai’s financial hub and modeled on English common law. The DIFC is often used when global recognition is a priority.
ADGM
The ADGM is Abu Dhabi’s international financial center, chosen by clients who want a highly regulated environment with strong oversight.

The choice usually depends on whether cost, reputation, or legal framework matters most to you.

The Process for Starting a Foundation in the UAE

The process for forming your foundation is clear, though many clients feel more confident when guided by a consultant. Below, we’ve put together a step-by-step process for how it typically unfolds:

Define Roles
You’ll need to decide who will act as founder, council members, and guardian (if needed).
Draft Documents
Your next step will be getting the charter drafted as per the laws for your foundation, by an expert at MSZ consultancy. These outline how the foundation will operate.
Submit Application
All paperwork is handed to the registrar, along with any required documentation.
Registrar Approval
Most approvals are issued in three business days or less.
Open Bank Accounts
With approval in hand, accounts can be opened in the foundation’s name.
Maintain Records
Foundations don’t have heavy reporting requirements, but accurate records are still needed.

2025 Amendments for the RAK ICC

RAK ICC recently updated its foundation rules, adding several new protections in 2025. These changes include:

Firewall Provisions
Stronger safeguards to keep foundation assets isolated from external claims.
Duress Protection Clause
Prevents decisions made under pressure from being legally enforced.
Stronger Arbitration Rules
Makes dispute resolution clearer and more predictable.
Private Trustee Options
Families can now appoint private trustees to help manage assets.

These updates show RAK ICC’s commitment to making its foundations competitive on a global scale.

The Requirements for Forming a Foundation in the UAE

When you submit your foundation application, you’ll be required to include several key pieces of documentation. These include:

Foundation application form
Copy of the foundation charter
Copy of the by-laws
Guardian’s consent (if a guardian is appointed)
Passports or ID documents for founders, council, and guardians
Proof of residence for all members
Ultimate Beneficial Owner (UBO) declaration
Source of wealth statement

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MSZ Consultancy Can Help You Establish Your Foundation in the UAE

With the right partner, starting a foundation in the UAE is a straightforward process. At MSZ Consultancy, we help clients define their goals, prepare documents, and navigate the requirements of establishing theirs.

Our team has experience across RAK ICC, DIFC, and ADGM, so we can help you choose the structure that fits best, and make the entire process simple and effective.

If you’re considering forming a foundation in the UAE, now is the right time to act. Contact MSZ Consultancy today at +971 52 544 1248, and let us handle the details while you focus on the bigger picture.

Frequently Asked Questions (FAQs)

Do you have a question about starting a company in the UAE? We’ve answered some of the most frequently asked questions about what you can expect:

How long does it take to set up a foundation?

Usually between three and five working days.

Can a foundation trade like a company?

No. Its purpose is asset management and succession planning, not day-to-day business.

Do I always need a guardian?

Not always. A guardian is only required in certain cases, like when minors are beneficiaries.

Can foreign assets be included?

Yes, a UAE foundation can hold assets anywhere in the world.

Does it replace a will?

In many cases, yes. A foundation can serve as a succession tool.

Is it only for wealthy families?

No. Entrepreneurs also use them to shield business assets and plan for the future.