Foundations provide a mechanism to consolidate holdings of various assets (shares, real property, intellectual property, royalties, etc.) into a single holding entity.
This allows for clarity on the transfer of assets during a succession process, and makes it Foundations operate like common law trusts, with an important distinction – they are legally incorporated with a distinct legal personality.
The advantage in registering a foundation in DIFC/ ADGM is for the existence of the common law. Because of its Orphan structure, the foundation will own the assets rather than any individual owning it.
Following are the members required to be appointed to register a foundation in DIFC:
- Council Members – At lease 2 council members must be appointed. The council Members can be either individual (or) body corporate.
- Founder – Minimum 1 to be appointed. This can be an individual (or) body corporate.
- Guardian – Not mandatory to be appointed. Cannot be same as council member.
- Beneficiary – Minimum 1 to be appointed. Founder/ Council member can be appointed as Beneficiary.
DIFC cost to register a foundation is USD 200. Apart from this, there is a separate cost of USD 750 to file data protection with DIFC.
Our expert consultants in XPRO will assist you to register a foundation in DIFC, collate KYC, draft incorporation documents, open bank account and manage post registration services including renewal services.