RAKICC Foundations and Trusts Formation
Overview of RAKICC Foundations and Trusts
One of the best options for establishing a foundation or trust in the UAE is RAKICC. RAKICC is an International Corporate Centre in the Emirate of Ras Al Khaimah (RAK) in the UAE. It offers many benefits in terms of location, taxation, and business environment. So, many investors and entrepreneurs are interested in the RAKICC foundation and trust formation.
Foundations Regulations 2019 govern the setup of foundations in RAKICC. So, you must follow its requirements before, during, and after establishing your foundation. If you need expert assistance, FAME can help you at every step of the journey.
Benefits of the RAKICC Foundation and Trust Formation
The flexibility of foundation and trust structuring in RAKICC attracts many people to RAKICC. Besides, there are many other benefits. Have a close look at what RAKICC offers you if you want to form your foundation or trust here:
01
Location Benefits
RAKICC is a popular and well-developed international financial center in the UAE. Its top-tier professional services, advanced infrastructural facilities, and business-friendly environment make it a favored destination for foundation and trust set up in the UAE.
02
Easy Setup Process
RAK ICC has a simple and easy process of RAKICC foundation and trust formation. The costs are comparatively lower than other jurisdictions in the UAE and other countries. So, you can enjoy a fast, straightforward, and cost-effective process.
03
Taxation Benefits
The best part about setting up a trust in RAKICC is the tax-related exemptions and lower taxes. You are exempt from corporate, capital gains, and personal income taxes. These tax savings allow you to reduce your operational costs and improve your wealth.
04
Taxation Benefits
Foreign ownership is allowed for foundation and trust formation in RAKICC. So, you are not required to find a local sponsor for your trust and foundation.
05
Confidentiality and Privacy
Your foundation’s accounts, financial statements, property and administration details, and the objects and other details are available with the Registrar. However, these are not available for public disclosure. If the court asks for these details, only then you must provide details on all these aspects. Thus, you enjoy confidentiality and privacy.
06
Asset Protection
A foundation’s legal personality is separate from its founder or any other governing member. So, the liabilities of a foundation do not fall on any of the individuals but foundation’s assets fulfil them.
07
Flexibility
You can shift a foreign foundation for operations in RAKICC or redomicile your RAKICC foundation to another jurisdiction. You also have the flexibility to open a local or international bank account. You can even transfer your assets and properties across many countries. You do not need to have a physical office in RAKICC or even in the UAE.
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Conditions to Fulfil for Forming a Foundation and Trust in RAKICC
To leverage these benefits, you need to follow specific conditions and rules, which are as follows:
You need at least one founder and one Council member for foundation formation in RAKICC. The Council of a foundation must have at least two members. An individual or a legal person can be the Council members. The founder can also be a member of the Council.
Each member of the Council must provide a written consent for appointment as the Council member. A minor and mentally incapacitated natural person or an insolvent, liquidated, and dissolved legal person cannot become the Council members or guardians.
You must appoint a guardian if you establish a foundation for charitable or specific non-charitable purposes. The founder or the responsible person mentioned in the charter and by-laws must appoint the guardian. If no such person exists, the Council will request the Court to appoint a guardian. The guardian must give their consent to hold this position in the foundation.
A Council member cannot be a guardian. It can be a natural or legal person. Suppose the foundation’s charter or by-laws do not specify a designee who will receive all the property after the foundation’s termination. In that case, it will become the property of the RAK government.
01
Types of Foundations
You can form a foundation in RAKICC for these purposes:
- Exclusively for charity purposes
- Non-charity purposes
- Benefit of a specific person, or a class or category of people
You cannot conduct commercial activities, provided they are necessary or related to the foundation’s objectives.
02
Registered Office
A registered office in UAE is essential for all communication purposes. You can use your registered agent’s address for this. So, you must appoint a registered agent in RAKICC who is licensed, and has relevant qualifications.
03
Naming
The name of your foundation must end with “Foundation” or “Fdn”. Besides, you must follow the rules of Restricted Company Names of RAK ICC Business Companies Regulations 2018.
04
Structuring
Your foundation’s charter must include details on the name, objectives, purpose, initial property description, Council’s provisions, designee (natural or legal person who will receive the foundation’s property after termination), and term duration of the establishment.
Your foundation’s by-laws must include information on the following:
- Functions of the Council
- Remuneration for members of the foundation
- Procedures for appointment, resignation, and termination of members of the Council or any guardian
- Decision-making and approval hierarchy with names and procedures
- Status of the foundation’s property after its dissolution or winding up
You must write and submit the documents of your foundation or trust in the English language. These documents include the Charter and by-laws.
05
Accounting Requirements
You must keep accurate accounting records of the company. The Council is responsible for this task as well as for approving the records. You must maintain these records for at least five years. If requested by the Registrar, you must submit them within 14 days of the request. However, these are not available for public disclosure. You must also file an annual return with the Registrar and pay annual return fees to the Registrar.
06
Capital Requirements
The minimum initial capital requirement for a foundation set up in RAKICC is US$ 100 or in other currencies. Thus, the cost of forming a foundation or trust in RAKICC is pretty low.
07
Foundations Register
You must submit the following information to the Registrar for recording purposes in the Foundations Register:
- Name and registration number, along with the data of registration
- Name and address of each Council member
- Name and address of the registered agent
Procedure for RAKICC Foundation and Trust Setup
The procedure for foundation and trust formation in RAKICC is simple and easy.
In the first step, you must decide the purpose of your foundation and structuring. Once you decide this, you must determine the possible name options. Now, fill out the application form with all the necessary details as follows:
- Name
- Name and address of the proposed registered agent
- Charter and by-laws
- Address of the foundation or trust’s registered office
- Full names, nationality, and addresses of founder's, members of the Council, and guardian's
The founder's must sign the application and submit it to the Registrar. Along with the application form, submit the following documents:
- Passport copies of founder/s, beneficiaries, Council members, and guardian
- Details of beneficiaries
- Address proof of Council members, guardian, and founder
- A bank reference letter not older than three months
- Other documents as requested or needed to support the application
Once you provide the application and pay the relevant fees, the Registrar will check them. On approval of your registration, the registration of your foundation in RAKICC is complete. The Registrar might ask for more information if the documents and details are insufficient. You will receive a Certificate of Registration with your foundation’s name, date, and registration number.
FAME’s Services for Setting up a Foundation and Trust in RAKICC
FAME is a leading provider of RAKICC foundation and trust formation services in the UAE. We help you plan wealth management, asset protection, and family succession. After strategizing based on your needs, we help you set up the foundation and trust in RAKICC.
FAME has been helping its clients plan their assets and distribute wealth. You can create the best structure in RAKICC with the help of our consultants. Whether you have interests in charitable or philanthropic activities, want to change your family business into a foundation, or just plan to protect your assets, share your idea with us.
We’ll handle all the documentation and administrative formalities with the Registrar. You’ll also receive support in compliance with the necessary regulations. So, leverage RAKICC’s benefits for your foundation and trust setup.
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