3 months to register with the FTA
A foundation is a UAE tax resident and registers with the FTA within three months of its establishment. Being late means an AED 10,000 fine — and without registration you can’t apply for tax transparency either.
Company Registration in the UAE and Abroad
A foundation is a separate legal entity without shareholders that holds assets for purposes or beneficiaries set by the founder. It lets you decide in advance who receives what, and how — the family business, real estate and accounts — and separates those assets from personal risks.
In short
A foundation in DIFC, ADGM or RAK ICC is a legal entity with no shareholders: it owns the assets itself, a council runs it under the founder’s rules, and by-laws and beneficiaries are not published. Setup takes from 3 weeks; FTA registration is due within 3 months, or an AED 10,000 penalty applies.
Checked 16 October 2026 · Egor Chernyshev
Cost of a mistake
Up to USD 10,000
The DIFC fine if a copy of the foundation’s annual accounts doesn’t reach the registrar or agent within 30 days of the council approving them.
How to avoid itA foundation resembles a company, but it has no owners: the assets belong to the foundation itself, and it is run by a council under the rules the founder set down.
Three roles instead of shareholders
The foundation enters into contracts and opens accounts in its own name. The founder transfers assets to it, the council manages it under the founder’s rules, and the beneficiaries receive the benefit.
The by-laws stay private
The charter is filed with the registrar, while the by-laws naming beneficiaries and distributions stay internal. The council can be overseen by a guardian, who is sometimes mandatory.
Three jurisdictions, different weight
DIFC and ADGM offer common law and their own courts, which banks value. RAK ICC is simpler and cheaper to maintain, especially above intermediate companies.
A foundation is not a magic wand
It protects only assets that have been properly transferred, and only within the laws of the countries where they are located and where the beneficiaries live. Sometimes the analysis concludes that a will or a holding is enough.
Expert tip
The more rights the founder keeps, the harder it is to prove the assets are separate — in a dispute and before the tax authority of the founder’s country. We build the balance of control into the by-laws from the start.
Egor ChernyshevFounder and Managing Partner · Structures, holdings and foundationsWho it suits
A good fit if
Consider something else if
Foundation, will or holding
All three tools help pass on assets, but in different ways. The main difference is whether a court is needed and who manages things afterwards. They are often combined: a foundation at the top, a holding and SPVs beneath it.
A legal entity without shareholders in DIFC, ADGM or RAK ICC
Who owns the assets
The foundation itself — it has no owners
After the owner’s death
No probate case for the foundation’s assets: the foundation carries on
Who manages afterwards
The council — under the by-laws written by the founder
Setup
From 3 weeks; registry fees from USD 200 in DIFC, USD 1,000 in ADGM
Ongoing
Renewal with the registrar — USD 500 a year in DIFC and ADGM, bookkeeping, FTA
DIFC Wills, Dubai or Abu Dhabi courts
Who owns the assets
You, during your lifetime
After the owner’s death
Inheritance through the court: a grant of probate or a legal heirs certificate; accounts are frozen until the decision
Who manages afterwards
The executor transfers the assets to the heirs, who then manage them themselves
Setup
A few weeks; DIFC fee of AED 5,000–15,000 depending on the type of will
Ongoing
Update after marriage, divorce or the birth of children; an amendment in DIFC costs AED 550
A company with shareholders in ADGM, DIFC or RAK ICC
Who owns the assets
The company, while you hold its shares
After the owner’s death
The holding’s shares pass by will or by law — through the court
Who manages afterwards
The heirs become shareholders and appoint directors
Setup
SPV registration — from 1–2 weeks
Ongoing
Renewal, bookkeeping and reporting, corporate tax return
Benefits
Jurisdictions
Fees follow the registries’ published 2025 schedules, checked in October 2026; the rules follow the centres’ own laws. Protection against foreign inheritance law applies under the centre’s law; a court in the country where an asset is located may take a different view.
from USD 200
no registration fee, USD 200 licence; optional name reservation — another USD 200
USD 500
USD 200 licence and USD 300 confirmation statement
If the foundation has purposes
charitable or other — not only beneficiaries
DIFC address
registered office in the centre; agent optional
Click an option to highlight it across every parameter
Meeting with an expert
Sometimes a will or a holding does the job — more simply and cheaply. At the meeting, tell the partner about your assets and family, and they will tell you which tool fits.
Corporate tax
A foundation is a UAE tax resident. If it meets the conditions of Article 17 of the Corporate Tax Law, the FTA, on application, treats it as tax transparent: tax is assessed on the beneficiaries, not on the foundation.
What it gives: the status of a transparent Unincorporated Partnership: the foundation’s income and assets are attributed to the beneficiaries in proportion to their shares
Condition: the foundation is set up for named or identifiable individuals — for example, children and grandchildren, including those not yet born — and/or a public benefit entity, and its main purpose is not tax avoidance
Does not cover: a foundation without an approved application — it is taxed as an ordinary legal entity: 9% on profits above AED 375,000
What it gives: not subject to corporate tax — for an individual, this is personal investment or real estate investment
Condition: the foundation only receives, holds, invests and distributes assets: shares, bonds, real estate let out without a licence
Does not cover: activities for which an individual would need a licence — in the FTA’s example, the foundation runs a motel itself
What it gives: can also become transparent — including LLCs and SPVs
Condition: the foundation wholly owns and controls them, and they carry on no business activity themselves; each registers with the FTA separately
Does not cover: a family office — SFO or MFO: in the FTA’s view, it usually does not meet the conditions and is taxed under the standard rules
What it gives: no corporate tax for the founder
Condition: the transferor is an individual, and the assets are their personal investments or real estate investments
Does not cover: a corporate founder: the transfer is made at market value, and any gain may be taxed
Transparency doesn’t apply automatically: the foundation registers with the FTA, applies before the end of the tax period and confirms the conditions every year. If even one is breached, the status is lost from the start of that period, together with the companies under the foundation. How distributions are taxed in the beneficiaries’ home countries is determined by those countries’ laws.
Process
Every step is visible in the client portal: what’s happening now and whether we need anything from you.
Steps on your side: 2 of 7
You tell us about your assets, their jurisdictions, your family and your goals. We assess whether a foundation solves the problem and what to check in the countries of your citizenship, residence and where the assets are located.
Step 1 of 7
You tell us about your assets, their jurisdictions, your family and your goals. We assess whether a foundation solves the problem and what to check in the countries of your citizenship, residence and where the assets are located.
Documents
From the founder
On council members, the guardian and beneficiaries
On the assets
Timing and budget
A foundation budget covers structuring, registration and annual maintenance. It is driven most by the complexity of the by-laws and the number of countries where assets are held.
Deadlines
Even a foundation that only holds assets runs on the registrar’s and the FTA’s calendar. DIFC penalties are the statutory maximums, FTA penalties are fixed; where a rule applies to only one centre, that centre is named.
Day 0
From this date the foundation legally exists and all the deadlines below run; in DIFC and ADGM, a licence is issued together with the certificate.
Within 3 months
The foundation is a legal entity and a UAE tax resident; without registration, you can’t apply for tax transparency either.
If missed: AED 10,000 for being late
By the anniversary
DIFC — licence and confirmation statement, no later than 30 days after the licence expires; ADGM — licence and data protection; RAK ICC — annual return.
Every year
30 days after the accounts are approved
Annual accounts — DIFC
The council approves the accounts and two of its members sign them; a copy goes to the registrar or agent. In ADGM, records are kept for 10 years and provided to the registrar within 14 days of a request.
If missed: up to USD 10,000
9 months after the tax period ends
Return or confirmation for the FTA
A transparent family foundation confirms that the conditions are met; without transparency — a corporate tax return, even when no tax is due.
If missed: for the return — AED 500 a month in the first year, then AED 1,000
On changes
30 days — DIFC
Council, guardian, agent
Notify the registrar of the change; the fee is USD 100 per notice. In ADGM, a new council member is notified within 14 days of appointment.
If missed: up to USD 2,000 in DIFC
30 days — DIFC
Charter and by-laws
The new charter is filed with the registrar and takes effect on registration; the by-laws are given to the agent or the registrar.
If missed: up to USD 2,000
Tax transparency
Before the end of the tax period
Application to the FTA
Filed after FTA registration — for the current or the next period.
6 months after the period ends
The charity’s share
If a public benefit entity is among the beneficiaries and its income would otherwise be taxable, that income is distributed within this period — otherwise the foundation loses transparency.
Getting it right
Click a card to see how to do it right · 0 of 6 open
01 What people often do
Registering a foundation and not transferring any assets into it.
02 What people often do
Using template by-laws with no provisions for the founder’s incapacity, a divorce or a dispute between heirs.
03 What people often do
Leaving the founder so much control that the foundation effectively becomes a personal wallet.
04 What people often do
Not checking the rules of your country of citizenship and tax residence.
05 What people often do
Transferring assets to a foundation after creditors have already made claims.
06 What people often do
Setting up a council of just two people “to meet the minimum” without planning who will replace a member who steps down.
FAQ
Egor Chernyshev — Structures, holdings and foundations
A trust is a relationship, not a legal entity: the assets are held in the name of a trustee. A foundation is an independent legal entity that owns the assets itself. For many banks and counterparties in the region, a foundation is easier to understand than a trust, and registration in DIFC or ADGM provides a familiar legal framework.
Egor Chernyshev · Structures, holdings and foundationsDeadlines, amounts and rules are based on these sources as of the check date. Rules change: check with us before deciding.
Next step
Describe the assets you own, where they are and whom you want as beneficiaries. The partner who leads structuring will propose a foundation structure and jurisdiction, and tell you what needs to be checked in your home country.
Egor ChernyshevFounder and Managing Partner · Structures, holdings and foundations
Company Registration in the UAE and Abroad
