Dubai’s rise to the top of global wealth centres, ranked first in the MEASA region and among the world’s top 22 cities for high-net-worth individuals in 2023, reflects its powerful appeal to the world’s wealthiest. With over 68,500 HNWIs and a strategic blend of political stability, business-friendly policies, competitive tax advantages, and exceptional lifestyle offerings, Dubai is an ideal destination for those seeking to protect and grow their wealth. 

DIFC foundations provide just that—an innovative solution to safeguarding and managing your assets across borders. However, the process begins with ensuring you have the right documents in place. From foundational paperwork like the KYCs and foundation charter to supporting details such as beneficiary lists and governance structures, each document plays a crucial role in shaping the foundation’s purpose and compliance. Before tackling documentation, revisit our blog on 7 Critical Steps to Set Up DIFC Foundation for Secure Wealth Planning to see the entire process. 

Now, let’s take a look at the key documents you’ll need to get started for the DIFC foundation setup. 

1. Identification Documents 

To comply with the DIFC’s stringent anti-money laundering (AML) and know-your-customer (KYC) regulations, valid identification is required for all individuals involved in the foundation. 

What You’ll Need: 

Passport Copies: A clear, valid copy for all founder(s), council members, and officers. 

Proof of Address: Recent utility bills, bank statements, or official letters verifying the residential address of each individual. 

2. The Foundation Charter 

The foundation charter is the primary document of your DIFC foundation. It defines the entity’s identity and operations. 

What Should the Charter Include? 

Purpose of the Foundation: A clear statement outlining the reasons for its establishment, such as family wealth management, charitable giving, or business succession planning. 

Governance Structure: The management framework, detailing the roles of council members and officers. 

Classes of Beneficiaries: Identification of who will benefit from the foundation—specific individuals, groups, or charitable causes. 

Administrative Procedures: Guidelines for how the foundation will operate, including processes for decision-making and financial management. 

Dissolution Process: Clear instructions on what will happen to the foundation’s assets if it is dissolved, ensuring transparency and legal compliance. 

The foundation charter serves as the cornerstone for incorporation and must comply with DIFC regulations. 

3. By-Laws (Optional but Recommended) 

By-laws are supplementary rules and procedures that provide additional clarity for managing the foundation. While not mandatory, they can address specific operational details such as: 

• Procedures for appointing and removing officers or council members. 
• Guidelines for asset distribution and investment strategies. 
• Conflict resolution mechanisms. 
• By-laws are particularly helpful for complex foundations with multiple stakeholders or extensive assets. 

4. Council Members and Officers’ Details  

The foundation’s management team plays a critical role in the DIFC foundation setup. The DIFC requires detailed information about all council members and officers, including: 

Full Names and Contact Information: Phone numbers and email addresses for seamless communication. 

Residential Addresses: For regulatory and correspondence purposes. 

Defined Roles and Responsibilities: Clearly stated duties for each member to avoid any ambiguity. 

By providing these details, the foundation establishes its accountability and operational structure. 

5. Statement of Purpose 

A well-drafted statement of purpose is essential for the DIFC foundation setup. This document provides a concise and lawful outline of why the foundation is being established and what it aims to achieve. 

Key Considerations: 

• Ensure the purpose aligns with DIFC regulations. 
• Articulate the objectives clearly to avoid any legal or operational challenges. 
• Reflect the founder’s intent, whether it’s protecting family assets, supporting charitable causes, or facilitating business objectives. 

6. Resolution of the Founder 

The founder’s resolution is a formal declaration that officially establishes the DIFC foundation setup. It includes: 

• Approval of the Foundation Charter: The founder’s consent to the charter’s terms. 
• Approval of By-Laws (if any): If by-laws are adopted, this resolution ensures they are recognized as binding. 

This document symbolizes the founder’s commitment to the foundation’s establishment and governance framework. 

7. Application Form  

The application form provided by the DIFC Registrar of Companies consolidates all relevant information about the foundation. This completed form, along with the supporting documents, is submitted to initiate the incorporation process. 

Common Information Required: 

• Name of the foundation. 
• Details of the founder(s). 
• Summary of the foundation’s purpose. 
• Administrative and governance details. 

The DIFC foundation setup allows you to leverage all the benefits of Dubai ensuring that your wealth is safeguarded in one of the most attractive and stable financial environments in the world. Whether your focus is on wealth management, succession planning, or asset protection, this offers the ideal framework to secure your legacy and thrive in a rapidly evolving global wealth landscape. 

MS to Secure Your Legacy with DIFC Foundation Setup 

At MS, we provide expert services to help the DIFC foundation setup and management, ensuring your wealth is protected and structured for the future. From drafting foundation charters to managing all required documentation, we make the process seamless and compliant with DIFC regulations. Our team offers tailored advice on succession planning, asset protection, and cross-border wealth management, helping you safeguard your legacy in one of the world’s leading financial hubs.  

Dubai is a global business hub renowned for its favorable business environment and strategic location. Setting up a business in Dubai offers immense opportunities and benefits, but the process can be complex and overwhelming for newcomers.

The 6 Steps to Consider While Settingc up a Business in Dubai:

1) Choosing the Right Business Structure in Dubai:

2) Dubai Free Zones: Exploring Business Opportunities:

Enjoy 100% foreign ownership, allowing complete control and autonomy over your business. Benefit from tax exemptions on corporate and personal income, customs duties, and capital gains. Experience simplified company registration processes, with streamlined procedures and efficient licensing. Access world-class infrastructure, state-of-the-art facilities, and proximity to international markets. Join a thriving business community, fostering networking opportunities and industry-specific support.

3) Offshore Companies: Exploring International Business Opportunities:

Establishing an offshore company in Dubai offers numerous advantages, including tax optimization, as it allows businesses to benefit from favorable tax regimes. Additionally, offshore companies provide enhanced asset protection, shielding assets from potential liabilities and risks. Moreover, such companies can facilitate global expansion, providing access to international markets and opportunities. With its strategic location and business-friendly environment, Dubai serves as an ideal hub for offshore operations, enabling businesses to thrive and maximize their potential.

4) Understanding Dubai’s Tax Environment:

Dubai offers a compelling tax environment for businesses with several key benefits and exemptions. Companies operating in Dubai enjoy 100% tax exemption on personal income taxes. Value Added Tax (VAT) is currently set at a rate of 5% but does not apply to certain sectors like healthcare and education. Dubai also provides exemptions on customs duties, making it an attractive location for international trade and commerce. Additionally, businesses in Dubai benefit from a network of Double Taxation Avoidance Agreements (DTAA) with numerous countries, further enhancing their tax advantages.

5) Essential Steps for Business Incorporation in Dubai:

Company Registration: Begin by selecting the appropriate business structure (Free Zone, Mainland, or Offshore) and submit the required documents to the relevant authorities. Obtain necessary approvals and register your company with the appropriate government agency.

Trade Name Reservation: Choose a unique trade name for your business and apply for its reservation. Ensure that the name complies with the guidelines set by the Department of Economic Development (DED) or the respective Free Zone authority.

• Visa Applications: Determine the visa requirements for your company’s shareholders, partners, and employees. Apply for visas through the appropriate channels, such as the General Directorate of Residency and Foreigners Affairs (GDRFA) or the Free Zone authority.

• Opening Bank Accounts: Select a suitable bank in Dubai and gather the required documentation, including company registration papers, shareholder information, and identification documents. Submit the necessary paperwork to open corporate bank accounts for your business.

• Licensing and Permits: Obtain the necessary licenses and permits specific to your business activity. This may include trade licenses, professional licenses, or specialized permits depending on the nature of your operations. Comply with the regulations set by the relevant authorities.
  

6) Leveraging Dubai’s Business Support Ecosystem:

Discover the boundless support for businesses in Dubai, a city teeming with accelerators, incubators, and networking platforms. Benefit from a dynamic ecosystem that nurtures innovation and growth, with programs tailored to every industry. Government initiatives further amplify opportunities, providing grants, mentorship, and access to a thriving community. Whether you’re a startup or an established enterprise, Dubai’s robust support services propel you toward success on a global stage. Unleash your business’s true potential in a city that fosters entrepreneurship like no other

How MS can help you.

At MS, we are dedicated to assisting you every step of the way, from pre-business setup services to establishing the best corporate structure and completing the registration process in the DMCC portal. Our expertise lies in designing unique plans and packages tailored specifically to your needs, ensuring that your business receives the personalized guidance it deserves. We take care of all the necessary documentation, including finalizing required documents from DMCC, facilitating amendments, renewals, and obtaining your company’s trade license. Additionally, we provide support for adding new activities, partners, or shareholders to existing licenses, and help you obtain your company’s establishment card. With a deep understanding of UAE regulations, our professional team is committed to providing comprehensive assistance, enabling your business to thrive and grow in the UAE market.

Business set up fee and license renewal fees for the private sector in Abu Dhabi Emirate have been reduced to AED 1000, i.e., a reduction of more than 90 per cent. The announcement was made by the Abu Dhabi Department of Economic Development (ADDED), in collaboration with multiple government entities, including the Abu Dhabi Chamber of Commerce and Industry.

From July 27, 2021, onwards, the new fee structure will take effect, and it remarks a significant reduction from the existing business setup fee. The new fees include six activities within the business license and will cover all fees from Abu Dhabi Government entities such as ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, CoC (Certificate of Conformity) issuance fee, and fees required by Abu Dhabi regulating entities dependent on the type of business. 

The decision to slash the fees is expected to enhance the ‘ease of doing business in the emirate and increase Abu Dhabi’s competitiveness regionally and internationally. It will create a boost in the emirate’s business climate while encouraging innovation and growth. It’ll also support the Abu Dhabi Government’s efforts to create a conducive business environment for the private sectors, including SMEs of all sizes.

Note:  The federal charges for business setup and license renewal still apply. This announcement pertains to business setup/license renewal fees only. Incorporating a new company will require investors to bear costs for Office spaces, Immigration and labor card, Visa etc.