DIFC FOUNDATION setup

The DIFC Foundation offers a unique, legally recognized structure designed for individuals, families, and businesses seeking effective asset protection, succession planning, and wealth management. With its status as a separate legal entity, a DIFC Foundation provides robust protection for assets, shielding them from personal liabilities while allowing for complete control and confidentiality. Whether for philanthropic endeavors or preserving wealth across generations, the DIFC Foundation is a versatile tool tailored to your needs.

What you’ll get

  • legal Entity

    With its own legal personality, independent from its founder(s), council members, and beneficiaries.

  • Full Control

    Retain significant control through the foundation’s council or by-laws.

  • confidendiality

    The identities of beneficiaries and details of assets do not need to be disclosed publicly, making it a secure and private structure for wealth management.

  • Asset Protection

    providing protection against personal liabilities and creditor claims.

  • no forced heirship

    ideal for succession planning and multi-generational wealth transfers.

  • Governance Structure

    Which is highly flexible, and the founder can set specific rules regarding how decisions are made.

  • Regulated structure

    DIFC Foundations benefit from the robust DIFC legal and regulatory framework, which provides legal certainty and protection while keeping compliance requirements streamlined.

  • Manage global Assets

    Hold and manage assets globally, making it a suitable structure for families or businesses with assets spread across multiple jurisdictions.

  • tax advantages

    DIFC is a tax-neutral jurisdiction, meaning that there are no taxes on income, capital gains, or withholding taxes for assets held within the DIFC.

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Frequently asked questions

  • A DIFC Foundation is a separate legal entity that holds and manages assets for specific purposes, such as wealth management, estate planning, or charitable activities. The foundation operates under its own legal personality, meaning it can own property, enter contracts, and manage assets independently of its founder(s).

  • Dubai International Financial Center (DIFC) is a tax neutral jurisdiction, hence making a foundation tax free.

  • Both individuals and legal entities, whether based in the UAE or internationally, can establish a DIFC Foundation. The founder contributes assets to the foundation, and a council is appointed to manage the foundation’s activities.

  • A DIFC Foundation offers several benefits, including asset protection, exemption from forced heirship laws, confidentiality, flexibility in governance, and the ability to hold and manage assets globally. Additionally, the foundation can exist in perpetuity, making it ideal for long-term planning.

  • Yes, once assets are transferred to the foundation, they are separated from the founder’s personal estate. This provides protection from personal creditors, provided the foundation was not established with fraudulent intent. The foundation’s assets remain under its control, shielding them from personal legal disputes.

  • Yes, while the founder no longer legally owns the assets, they can still influence how the assets are managed through the foundation’s governance structure. By appointing trusted council members or serving on the council themselves, founders can maintain significant control over the foundation’s operations.