Setting Up a DIFC Foundation in Dubai

Business setup in Dubai comes with many benefits, and one of the foremost benefits is having business-friendly policies. Dubai is growing like no one has ever imagined it, yet there are numerous business ideas one can think of for company formation in Dubai. As a leading business setup company in Dubai, Make My Firm has given wings to many entrepreneurs. Our team of expert business consultants in Dubai assists entrepreneurs with their queries regarding specific zones, license procedures, and many other things.

Nowadays, Dubai has seen many organizations setting up a DIFC foundation in Dubai. The Dubai International Financial Center has become an important global financial hub. It not only attracts companies that want to start their businesses in the Middle East, Africa, and South Asia, but it has also become the foremost choice for businesses to run their global operations. The sole aim behind DIFC is to encourage more financial investment, and hence, the Dubai government established the DIFC Foundation in 2018. DIFC allows people to do succession planning, own property, and do other investment activities.

DIFC offers too many benefits for your business, such as low tax, modern infrastructure, business-friendly legal structure, etc. As there are many benefits, setting up a DIFC foundation in Dubai proves beneficial. Yet, there are many business entities that don’t know about DIFC and its advantages and hence don’t think about setting up a DIFC foundation in Dubai. But this guide by Make My Firm assists you with setting up a DIFC foundation in Dubai.

A thorough guide about DIFC and setting up a DIFC foundation in Dubai.

What is a DIFC Foundation?

You may have guessed from the name that DIFC Foundation might be some charitable trust or something related to it. But guess what! You are completely wrong. The DIFC Foundation in Dubai is a different type of legal structure. It is founded by a founder. Once all the setup of the DIFC foundation is done, it no longer belongs to the founder only. In simpler words, it means that however the foundation is built by the founder, as other people join it, the DIFC foundation becomes everyone’s entity.

The DIFC Foundation is composed of the council, beneficiaries, the founder, and guardians. As a founder adds assets to the DIFC foundation, they are no longer called the founder’s assets, but they are the foundation’s assets. If we put everything in simpler words, the council, beneficiaries, and everyone act as a board of directors. Beneficiaries are those who benefit from the foundation. Guardians are people who play a supervisory role.

In the DIFC Foundation, the single entity’s job is to make decisions that fall within the charter as well as ensure everyone’s benefit.

One can establish the DIFC foundation for various reasons; among the most famous are succession planning, real estate, tax mitigation, and charity.

Why should you think about setting up the DIFC Foundation in Dubai?

If you are thinking about setting up the DIFC Foundation, then let us tell you that there are millions of reasons you must opt for the DIFC Foundation. It minimizes the risk involved in asset management, it offers tax benefits, etc.

The foremost benefit is that there are various DIFC foundation laws. These laws are made under the agreements of the DIFC and the Dubai Land Department. These agreements are mostly about property deals. The Foundation is only permitted to purchase properties listed under the department.

Apart from real estate, there are other popular reasons to set up a DIFC Foundation in Dubai.

• Succession Planning
• Asset Control
• Flexible Operations

Step-by-step guide for setting up a DIFC foundation in Dubai.

Here is a step-by-step guide that assists you with your DIFC foundation process in Dubai.

• Set the Foundation’s purpose: Whenever you think about setting up a DIFC foundation in Dubai, you must finalize the purpose of your foundation. As per that, you can plan and charter things. The purpose of your foundation must align with the government’s rules and regulations. Once you’ve decided on the purpose of your foundation, you can select the relevant name for your foundation.
• Prepare the Initial Endowment: As you set up a DIFC foundation, you must have the initial endowment. Endowment depends on the requirements of your foundation. Depending on your foundation’s type, you can have cash, property, or any other assets as an endowment.
• Private or Public: As you are almost on the edge of setting up your DIFC foundation in Dubai, now you must decide whether your foundation will be public or private. Let us explain these two:

1.   Private DIFC Foundation: This one serves an individual, a group, or any charitable trust.
2.   Public DIFC Foundation: As the name states, the public DIFC Foundation serves the public and is open to the public without any           restrictions.

• Articles of Association: This is one of the important topics, as it delineates your Foundation’s purpose and activities. Additionally, it must outline the Foundation’s governance structure. You have to mention everything about your foundation, as well as every person’s role and duties.
• Submit Information for Registration: As you have prepared the Articles of Association, now you have to submit all the information for registration of your DIFC foundation in Dubai. As we discussed above, your Articles of Association must align with the UAE’s rules and regulations. Other than the Articles of Association, you also have to submit copies of your IDs, the initial endowment, the lease agreement, and the bank’s letter. You have to submit all these documents to the foundation’s office. Now, you just have to sit back and wait for your approval.
• Secure Permits and Approval: Once your foundation is registered, the next step includes submitting permits and approvals if you require any. As per the nature of your foundation, you have to secure permits and approvals.
• Determine the Governance Structure: You have already listed the governance structure of your DIFC Foundation. Now onwards, everyone must be prepared to act and perform their duties as per their given roles.

This is the comprehensive guide to setting up a DIFC foundation in Dubai.

Why should you call Make My Firm for setting up a DIFC Foundation in Dubai?

Make My Firm is a leading business setup company in Dubai. They have more than a decade of experience in company formation in Dubai. Their expert business setup consultant team in Dubai helps you with all your business setup queries. You can leverage their years of expertise and build a successful base for your business; additionally, you can always rely on them to solve your queries.

Conclusion

Setting up a DIFC foundation in Dubai is one of the most highly demanding business ventures one can think of. Let Make My Firm assist you with all your DIFC Foundation-related queries. Call us at +971 52 673 9777 and let us help you with your business setup in Dubai.