RAK International Corporate Centre (RAK ICC) Foundations are a corporate body created with a legal personality separate from that of its founder(s). The Foundation acts through its council to administer its assets and carry out its objects.
Uses of RAK ICC Foundations:
- Enhanced succession planning and asset protection
- To provide a robust governance structure
- Guardian oversight
- A distinct legal personality that separates liability meanwhile maintaining control of assets and have perpetual existence after the lifetime of the founder
- To hold assets
- Distribute dividends from operating companies
- Hold shares in RAK ICC companies
- Manage and hold the founders assets for the benefit of the qualified recipients
- Hold operating companies
- Family philanthropic purposes
Overview of RAK ICC Foundations
The RAK ICC Foundations Regulations 2019.
A choice of common law jurisdictions between either: The Courts of the Abu Dhabi Global Market; or The Courts of the Dubai International Financial Centre.
Criteria for the incorporation process is as follows:
- Founder (Individual or Body Corporate)
- Council Members (Individual or Body Corporate)
- A Registered Agent
- A UAE registered office
A Foundation that has a charitable object, or a specified non-charitable object must appoint a Guardian (Individual or Body Corporate) accordingly. Completion of the Application Form signed by the Founder and subsequently submitted to the Registrar. The Application Form shall contain the above details, together with the Charter and the By-Laws.
USD 100 (or it’s equivalent in any other currency). Additional Property may be subsequently contributed to the Foundation by a Contributor.
The Foundation is governed by the Council Members in accordance with the provisions of the By-Laws which is a private document.
The Council is comprised of a minimum of 2 Members who could be either the Founder, Family Members, Trusted Advisors, or Professional Advisers (Individual or Body Corporate). The Guardian (if appointed) supervises the Council Members and always ensures strict compliance with the By-Laws of the Foundation.
Right to Information
The Registrar shall maintain a Foundations Register which shall contain basic details of each Foundation (Name and date of registration, details of the Founder, Council Members, Registered Agent). All other information is treated as private and shall not be disclosed unless required by relevant authorities.
Migration of a Foundation into, or from the RAK ICC, is permissible subject to certain conditions.
The registered agent shall maintain the accounting records at the registered office. The accounting records are not subject to public disclosure.
Advantages of RAK ICC Foundations:
- Internationally compliant Registry
- Robust governance structure
- Attractive tax regime effective in the UAE
- No requirement to file or audit accounts – the company otherwise remains subject to RAK ICC AML requirements set out in Reglamento de Empresas de Negocios RAK ICC 2018
- Possibility to migrate to RAK ICC from overseas
- Low registration and administrative costs
- Perpetual concept
- Flexibility with beneficiary classes