DIFC Foundation Setup

A modern legal structure for wealth preservation, governance, and estate planning in the UAE

For globally minded individuals, families, and business owners, the DIFC Foundation offers a flexible, internationally recognised structure for asset protection, legacy planning, and succession. Unlike offshore trusts, a DIFC Foundation provides a robust legal framework under common law - delivered within the secure, regulated environment of the Dubai International Financial Centre.

Through our Private Office, clients can establish a DIFC Foundation tailored to their needs, whether to preserve family wealth, manage intergenerational succession, ringfence assets from creditors, or fulfil charitable objectives. The structure allows founders to retain control while ensuring assets are distributed in line with clear intentions—without triggering Shariah-based inheritance rules.

What It Offers

Through our Private Office, clients can establish a DIFC Foundation with full legal and administrative support. The service includes:

• Foundation Setup and Registration: End-to-end assistance with incorporating the Foundation under DIFC law, including regulatory filings and liaison with the DIFC Registrar.
• Charter and By-Laws Drafting: Tailored preparation of the Foundation’s Charter (which sets out its purpose and legal structure) and By-Laws (which govern its internal operations, succession terms, and beneficiary distributions).
• Council Formation and Appointment: Guidance on appointing a compliant Council structure, including the Founder and additional members, if required.
• Guardian Structuring: Support in appointing a Guardian to oversee the Foundation’s activities and ensure alignment with its Charter and regulations.
• Beneficiary Frameworks: Advice on defining and documenting beneficiaries, whether individuals, family members, charitable organisations, or corporate interests.
• Ongoing Support and Amendments: Assistance with changes to governance documents, asset transfers into the Foundation, and updates to regulatory filings over time.

Every element—from initial drafting to future amendments—is handled with an understanding of succession sensitivities, tax and asset protection considerations, and regional legal nuances. The structure is fully customisable, with the flexibility to adapt as your family or business needs evolve.

Structure of a DIFC Foundation

A DIFC Foundation comprises four key parties:

• The Founder: Initiates the Foundation and transfers assets into it. Responsible for defining the purpose and structure through the Charter and By-Laws.
• The Council: Appointed by the Founder (minimum two members), the Council acts similarly to a board of directors. It governs the Foundation’s affairs in accordance with the Charter and By-Laws.
• The Beneficiaries: Individuals, families, entities, or causes who benefit from the Foundation’s assets. These may be named or defined by category.
• The Guardian: A supervisory role that ensures the Council acts in good faith and in line with the Charter and DIFC regulations—protecting the interests of the beneficiaries.

The Foundation does not issue shares, has legal personality, and provides clear separation between personal and foundation-held assets—making it ideal for long-term estate planning, business continuity, and asset shielding.

Key Benefits

• Solid governance structure backed by a formal Charter and By-Laws
• Privacy and confidentiality with no public register of beneficiaries
• Preservation of family wealth across generations and jurisdictions
• Succession planning without the complications of probate or local inheritance law
• Protection from creditors, litigation, or divorce
• Avoidance of Shariah-based forced heirship rules
• Ability to support charitable or non-charitable purposes
• Self-managed or professionally governed, with cost-effective setup

Who It’s For

DIFC Foundations are an ideal solution for:

• HNW families planning intergenerational wealth transfers
• Entrepreneurs holding equity or IP in UAE-based or international businesses
• Private investors with cross-border assets or risk exposure
• Families seeking to shield assets from forced heirship or creditor claims
• Philanthropists looking to establish structured, enduring giving platforms

Understanding Your Needs

Our clients want to preserve control without inviting complexity. Many are navigating sensitive family dynamics, cross-border risks, or succession planning for significant estates. The DIFC Foundation provides the ideal balance—legally robust, operationally efficient, and tailored to your values.

We work with aligned legal and regulatory professionals to ensure your Foundation is structured correctly, complies with DIFC requirements, and is governed according to the Charter and By-Laws you define. Whether you want to retain involvement or set up a lasting legacy, we’ll ensure the governance reflects your intent.