UAE Foundations, introduced in 2017, are now an integral part of the country’s wealth management systems. It is an independent legal entity to which its founder confers his assets. Foundations play an important role in wealth management as it distinguishes assets from the founder’s wealth. Foundations are now available in UAE’s free zones like DIFC, ADGM, and RAK ICC. A foundation is self-owned and has no shareholders. It has a council that manages the founder’s assets as per the jurisdiction and supports the primary cause of the founder’s benefit.
KGRN, at UAE, helps trading companies and other entities manage assets by establishing foundations. We help you establish foundations of any structure, customized to suit your needs.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Composition of UAE Foundations:
As we have already seen, a foundation is an independent legal entity that helps in managing the founder’s wealth. It helps you in consolidating your wealth into a single vehicle and distinguishing your wealth from your commercial investments and assets. The foundation now owns your commercial investments and manages them as per the jurisdiction and charter. Therefore, foundations are ideal succession vehicles in the UAE and have many benefits to the beholder.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Where are UAE Foundations used?
- Vehicle for family wealth
- Succession planning
- Philanthropic and charitable causes
- To hold the structure of an underlying business or investment
- Asset protection against hostility and forced heirship
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Advantages of UAE foundations:
At KGRN, we help organizations establish a foundation in the UAE and manage their wealth efficiently. We also help you avail of the numerous benefits that a foundation vehicle provides to its beholder.
Some of the benefits of setting up a foundation in the UAE are listed here:
Asset protection:
By establishing a foundation in the UAE to manage your commercial assets, you can protect them from direct access by creditors, family members, and even the government. It becomes possible because, after establishing a foundation and transferring his assets, the founder no longer retains ownership.
Privacy protection:
By establishing a foundation in the UAE, you get the advantage of managing your family’s wealth discretely. And, by doing so, you get the following benefits:
- Reduces the risk of getting targeted by scammers and untrustworthy individuals for your wealth
- Gives you better bargaining power when it comes to business negotiations and assets acquisitions
- Reduces the risk of attracting claims and legal actions from third parties against the founder
- Eliminates the risk of any type of monetary extortion by third parties
- Reduces the urgency to make uncomfortable discussions regarding prenuptial agreements
Introduces flexibility:
By distinguishing your family wealth from commercial assets and separating legal and beneficial ownership, you can easily engage in inter-generational legacy planning. It also helps you in attaining your wealth protection goals in an uncomplicated manner. Foundations are necessary to make your wealth management process simple, especially if you own internationally mobile assets that come under multiple jurisdictions.
Effective succession planning :
The founder gets an assurance that the assets will get distributed as per his/her will when he/she has a foundation. A foundation assures that your assets will be distributed as per its terms, irrespective of the succession laws. If you have a foundation in the UAE, then even in places where enforceable wills are effective, you get to protect assets against bankruptcy, incapacitation, imprisonment, or divorce. You also can negate lengthy probation issues on death and gain continuity.
Improves family governance:
Foundations help you in establishing a corporate governance framework that is as effective as any company and similar to a single-family office. Therefore, you can manage your wealth professionally and gain many benefits.
Enables philanthropic giving:
By establishing a foundation, you can indulge in philanthropism and make donations to various causes. As a result, your foundation evolves along with your vision as a founder and helps you contribute to society.
Establishes a legacy:
By establishing a foundation that is rooted in the founder’s vision, he/she can establish a legacy that will go on for generations.
Supporting wealth plans:
Regardless of how complex your foundation’s structure is, we help you pass on the benefits to generations. We also ensure the preservation of your legacy while following the legal requirements.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Why KGRN?
KGRN is a reputed organization in the UAE, providing legal services both in the mainland and in the free zones. We are one of the best accounting firms and help you establish and maintain a foundation in the UAE and manage your wealth efficiently.
Here are a few reasons why we make a perfect choice:
- Firstly, at KGRN, we are committed to bringing 100% customer satisfaction.
- Secondly, our services are affordable and reasonably priced. You can select a plan from the range of options available.
- We provide timely service.
- Our services are transparent, and we maintain neutrality and impartiality during audits.
- We maintain 100% confidentiality. All your private details are encrypted during transactions to avoid privacy breaches.
- We are available 24/7 to clear your queries and assist you.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Frequently asked questions:
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How will UAE foundations help family-run businesses?
Family-run businesses usually have one member investing and steering it while others hold significant positions that help in running the business. But, you will need a more structured and professional approach to take it to the next level. You can achieve that by establishing a foundation in the UAE and transferring the management while still retaining the ownership.
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Are UAE foundations the same as a trust?
Though a foundation and a trust operate similarly, there are a few key differences that define them. A foundation operates more like a company and can carry out commercial activities. The founder still can retain some control over the assets in a foundation.
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How long will it take to establish UAE foundations?
It will take around 3 to 5 working days to establish a foundation in the UAE after you have submitted all the required documents to the registrar.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
