With a commitment to excellence, Davidson & Co provides comprehensive assistance in establishing Foundations in DIFC & ADGM, offering expertise in navigating the legal intricacies of both jurisdictions.Get In Touch
A DIFC foundation can be established for diverse purposes, including charitable initiatives, the management of family businesses, and the holding of assets such as real estate and artwork. This innovative vehicle provides a strategic approach to asset management in the UAE, offering a means to mitigate risks effectively.
For the ADGM foundation, a significant attraction for affluent investors opting for a foundation, as opposed to a Trust, is the notable ability of the Founder to maintain a significantly higher level of control over the management of assets within the Foundation.
The growing popularity of DIFC Foundations in the UAE, especially in Dubai, is attributed to the civil law jurisdiction of the region. Notably, one of its compelling features is the permission for property ownership in Dubai, facilitated through a Memorandum of Understanding (MoU) between the DIFC and the Dubai Land Department.
This legal framework enables entities like DIFC Foundations to acquire real estate registered with the Dubai Land Department, making them an attractive option for international investors and UAE residents alike.
With over 3000 entities registered and actively operating within its precincts, ADGM stands as a hub of progressive financial and legal initiatives. It is backed by the esteemed Abu Dhabi Government with top sovereign credit ratings and stands as a trailblazer in the MENA region.
ADGM holds the distinction of being the first jurisdiction in the region to comprehensively apply English Common Law, showcasing its commitment to international legal standards. Additionally, ADGM has spearheaded innovative advancements, hosting the world’s inaugural fully digital courtroom and establishing the world’s first digital banking license regime. Setting precedents, it introduced the region’s pioneering virtual asset regulatory framework.
A foundation in DIFC and ADGM involves four main parties:
Establishing a DIFC Foundation necessitates adherence to the following prerequisites:
The documentation for a DIFC or ADGM Foundation includes the Charter (foundation incorporation document) and By-Laws, detailing the explicit wishes of the Founder.
To facilitate the registration process, Davidson & Co. offers comprehensive services such as preparing incorporation documentation, submitting required documents to the relevant authority, and acting as a point of contact for ongoing queries.
DIFC Foundations offer numerous advantages, including a robust governance structure, privacy, private wealth management, succession planning, creditor and divorce protection, mitigation of forced heirship rules, and flexibility for both charitable and non-charitable purposes. Additionally, they are self-managed with competitive setup costs.
The Foundation structure within ADGM offers a range of benefits and features, including access to the UAE’s Double Tax Treaties (subject to compliance with the UAE Ministry of Finance requirements) and robust wealth management capabilities.
In addition, ADGM Foundations possess a distinct legal personality, affording them the ability to directly enter into contracts and arrangements. This legal separation ensures liability is segregated while maintaining control over assets.
Foundations can be categorized based on their objectives, including exclusively charitable, non-charitable, providing benefits to specified individuals, or a combination thereof. Each type adheres to different governance rules.
With a wealth of experience in various sectors our dynamic team are well prepared to provide
assistance, full contact details are available within our profiles.