The Ras Al Khaimah International Corporate Centre (RAK ICC) has announced the launch of its Foundation regime and has finalised the details in the RAK ICC Foundations Regulations 2019. These regulations make provisions for the registration of a Foundation established by a founder to dedicate certain assets towards specified charitable or non-charitable purposes.
The Foundation will have a separate legal personality, and the regulations are the result of global bench-marking to ensure they meet the appropriate international standards and market requirements. They can be used for a number of purposes, including but not limited to, financial structuring, succession and tax planning, private wealth management and preservation, asset protection, and by charitable institutions
The Foundation Regulations are designed to protect the founder’s wishes and the foundation’s assets. Some of the regime’s other key features include:
- Council Members (minimum of 2): the appointment of corporate entities is allowed
- Privacy: the Registrar is not open for public inspection
- Flexibility: it is possible to continue a traditional RAK ICC as a Foundation. Migration and amalgamation also are permitted
- Registration: an authorized registered agent and a registered office in the zone are required
- Legal Jurisdiction: one may opt for either ADGM or DIFC Courts to hear out disputes, which are both common law jurisdictions.
RAK ICC is not the only authority in the UAE that offers the potential benefits of a Foundation. DIFC and ADGM both have their own regimes. Each location shares the core benefits of these types of entities but there are a few unique advantages to each jurisdiction.
One of the requirements for all three Foundation regimes is that they must have a registered address in the UAE- this can be provided by a registered agent such as Alpha Management. If you are interested in learning more, please let us know.