“Here’ re the 7 key steps to set up a DIFC Foundation, emphasizing the importance of tailored documentation and regulatory compliance for effective wealth management. It highlights how this secure and flexible framework can help individuals and families in protecting and managing their assets for future generations.”

When it comes to wealth management, the right strategies and tools can be transformative. It’s not solely about increasing your assets; it’s also about protecting them for future generations and ensuring a seamless transition of wealth. In a world where personal and business interests often stretch across various jurisdictions, finding a robust and adaptable solution is essential. This is where the Dubai International Financial Centre (DIFC) foundations emerge as the premier structuring option that the MEASA region has to offer.

Established under the exclusive governance of DIFC laws, DIFC foundations offer a secure and flexible framework recognized globally, making them an ideal choice for individuals and families committed to preserving and managing their wealth across borders.

Now that you understand the importance and benefits of a DIFC foundation, Let’s explore the steps to set up a DIFC Foundation.

Key Steps to Set up a DIFC Foundation

Step 1: Collation of Documents

The first step in setting up a foundation involves gathering the necessary documentation. This includes detailed Know Your Customer (KYC) information on the following individuals:

• Founder: The person or entity establishing the foundation.
• Council Members: Individuals appointed to manage the foundation’s affairs.
• Guardian: The person responsible for overseeing the foundation and ensuring compliance with its charter and by-laws.

Collecting comprehensive KYC documentation is crucial for compliance with regulatory requirements and ensures that the foundation operates within the legal framework established by the DIFC.

Step 2: Preparation of Resolutions and Legal Documents

Once the documentation is in place, the next step is to prepare the necessary resolutions and legal documents. This includes drafting the Charter and By-Laws of the foundation.

While standard templates are available, we highly recommend customizing these documents to align with the specific needs and objectives of the client. Customization ensures that the foundation’s governance structure, operational procedures, and overall mission reflect the founder’s intentions and requirements.

Step 3: Finalization of Registered Address

A foundation must have a registered address in the DIFC. This address can either be a physical location within the DIFC or provided by a registered corporate service partner. Selecting a reliable registered agent is essential, as they will assist with compliance matters and ensure that the foundation meets all legal obligations.

Step 4: Initial Submission to the DIFC Registrar of Companies

One of the key steps to set up a DIFC Foundation is submitting an application to the DIFC Registrar of Companies. It should include the Charter, By-Laws, KYC details, and proof of the registered address.

Step 5: DIFC Review/Clarifications and Responses

Upon receiving the application, the DIFC Registrar will review the submitted documents. During this stage, the Registrar may request additional clarifications or information. It is crucial to respond promptly and accurately to any inquiries to facilitate the approval process.

Step 6: Final Approvals

Once the DIFC Registrar is satisfied with the application and all required clarifications have been addressed, the foundation will receive final approvals. At this stage, the foundation is officially formed, and the founders can begin to execute its objectives.

Step 7: Bank Account Opening and Visa Applications (if applicable)

Among the key steps to set up a DIFC Foundation, the final procedure involves opening a bank account and applying for any necessary visas for council members or staff. A bank account is essential for managing the foundation’s finances and ensuring its objectives are met effectively.

Steps to Set Up a DIFC Foundation: Benefits and Challenges

Setting up a DIFC Foundation is a powerful way to safeguard and manage wealth across borders, offering unparalleled flexibility, security, and global recognition. By following these clear and structured steps to set up a DIFC Foundation, individuals and families can ensure that their foundation is established in compliance with DIFC regulations and tailored to their unique needs and objectives. Whether you’re looking to protect personal assets, streamline succession planning, or support philanthropic endeavours, a DIFC Foundation provides the ideal platform to achieve long-term wealth preservation and growth.

While the steps to set up a DIFC Foundation are structured and clear, individuals and families may encounter various challenges during the process. Common issues include difficulties in documentation preparation, compliance with regulatory requirements, and understanding the DIFC laws.

Steps to Set Up a DIFC Foundation: How MS Can Guide You Through the Process

At MS, we specialize in providing end-to-end solutions for setting up DIFC Foundations. As a registered corporate service provider in the DIFC, we guide you through steps to set up a DIFC Foundation from gathering the necessary documentation to securing final approvals. Our team ensures that your foundation is customized to meet your specific needs while complying with all regulatory requirements. MS is your trusted partner in safeguarding and managing wealth for future generations. Let us help you unlock the full potential of a DIFC Foundation.