DIFC Foundation

Let's Talk

Free Consultation

Let's Talk

Free Consultation
difc foundation

Global Asset Protection Through DIFC Foundations

A DIFC Foundation is one of the most effective structures available in the UAE for long-term wealth planning, asset protection, and legacy structuring. Backed by common law and administered within a globally respected financial centre, it offers clarity, control, and continuity for families and businesses with international interests.

Establishing a DIFC Foundation delivers its full value only when its legal framework, governance structure, and asset alignment are planned correctly from the outset. This directly affects long-term control and ultimately determines how smoothly the structure functions across jurisdictions.

Why DIFC Is One of the World’s Most Trusted Financial Jurisdictions

The Dubai International Financial Centre (DIFC) is a leading global financial hub serving the Middle East, Africa, and South Asia (MEASA). Consistently ranked among the world’s top financial centres, DIFC is home to more than 7,700 active registered entities and over 47,000 professionals.
With close to 20 years of proven operations, DIFC has facilitated investment and trade flows across a region representing nearly 3 billion people and a nominal GDP of approximately USD 8 trillion. Its strength lies in an independent judicial system, a globally recognised financial exchange, world-class infrastructure, and a regulatory framework based on English common law.

What Is a DIFC Foundation?

A DIFC Foundation is a distinct legal entity established under the DIFC Foundations Regime, designed as a common-law alternative to traditional trust structures.
It is commonly used for:
  • Asset protection
  • Succession and inheritance planning
  • Tax and estate planning
  • Asset management
  • Corporate and investment structuring
  • Philanthropic and public interest purposes
This structure works equally well for families, entrepreneurs, and organisations looking to manage and preserve wealth across multiple generations.

Primary Features of a DIFC Foundation

  • Separate legal personality
  • Flexible governance structure
  • Ability to hold assets globally
  • Strong privacy and confidentiality protections
  • Common law framework
  • No residency requirement for Founders or officers

These features make DIFC Foundation Setup particularly attractive for international families and cross-border holdings.

Benefits of Setting Up a DIFC Foundation

Asset Protection

Assets held personally remain exposed to creditor claims and third-party risks. Once transferred into a DIFC Foundation, assets are legally separated from the Founder, offering a strong layer of protection.

Privacy

Founders and Beneficiaries are not publicly disclosed. Their names do not appear on land registries, title deeds, or company registers, significantly limiting external exposure.

Tax Planning

For families with assets in multiple jurisdictions, DIFC Foundations support efficient structuring aimed at minimising inheritance-related taxes and facilitating intergenerational transfers, subject to applicable laws.

Succession Planning

A Foundation allows the Founder to clearly define how assets are managed and distributed over time, ensuring continuity and adherence to long-term intentions.

Advantages of a DIFC Foundation Structure

  • Independent DIFC Courts operating under English common law.
  • Ability to hold shares, bank accounts, real estate, aviation assets, and investments worldwide.
  • Can contract, sue, and be sued in its own name.
  • Redomiciliation in and out of DIFC permitted.
  • Governance structures can be amended over time.
  • Initial asset contribution from as little as USD 100.
  • No physical office requirement (registered agent address permitted).
  • No UAE residency requirement.
  • Individuals or corporate bodies may act in all key roles.
  • Limited public disclosure.
  • No requirement for annual filings, audits, or accounts.

Secure your assets and plan for the future with a DIFC Foundation. Contact Elevate today for expert guidance and effortless registration.

Get Started Today

Holding Real Estate Through a DIFC Foundation

A DIFC Foundation may legally hold property in Dubai’s designated foreign ownership areas for both Muslims and non-Muslims.
DIFC has a Memorandum of Understanding with the Dubai Land Department, allowing property transfers into a Foundation structure.

Transfer Fee Benefit

In qualifying cases where beneficial ownership remains unchanged, the property transfer fee may be reduced from 4% to 0.125%.

Designated Areas Include

Downtown Dubai, Business Bay, Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers, Emirates Hills, Arabian Ranches, Burj Khalifa, Meydan, Dubai South, Dubai Investment Park, Jumeirah Village, and other approved locations.

DIFC Foundations as Shareholders

A DIFC Foundation can act as a shareholder in companies established in:
DMCC

DMCC

DMCC

JAFZA

DMCC

Other UAE free zones

Where a free zone does not directly recognise foundations, a DIFC Prescribed Company may be used as an intermediary holding structure.

DIFC Foundation Setup Process

Our DIFC Foundation Setup in Dubai follows a structured and regulator-aligned process:
  • Document collection and KYC for the Founder, Council Members, and Guardian
  • Drafting customised Foundation Charter and By-Laws
  • Registered address finalisation (physical office or Registered Agent)
  • Submission to the DIFC Registrar of Companies
  • DIFC review and regulatory clarifications
  • Final approval and incorporation
  • Post-setup services including bank account opening and visas, where applicable
This process also completes DIFC Foundation Registration in UAE under the DIFC Registrar.

DIFC Legal System

The DIFC Courts operate as an independent, English-language judiciary based on common law. Since Dubai Law No. 16 of 2011, the Courts may hear both local and international commercial disputes with party consent.
DIFC Foundation vs Trust
DIFC Foundation
  • Separate legal entity
  • Holds legal and beneficial ownership
  • Can contract and litigate in its own name
  • Not a separate legal entity
  • Trustees hold legal title
  • Beneficiaries hold beneficial ownership
  • Trustees contract and litigate personally

Key Parties to a DIFC Foundation

Founder

Transfers assets into the Foundation and may retain reserved powers.

Council Members

Perform a role similar to company directors, managing the Foundation in line with its Charter and By-Laws.

Guardian

Oversees the Council and safeguards the Foundation’s purpose. Mandatory for charitable foundations and after the Founder’s death.

Beneficiaries

Individuals or entities entitled to benefit from the Foundation’s assets. The Founder may also be a beneficiary.

Registered Agent Requirement

Every DIFC Foundation must maintain a registered office, typically fulfilled by appointing a Registered Agent.
  • Foundation setup and administration
  • Drafting and filing legal documents
  • Registered address provision
  • Compliance and AML services
  • Accounting and secretarial support

The Foundation’s name must end with the word “Foundation” and comply with all DIFC naming regulations.

Set up your DIFC Foundation on a framework built to last. Elevate Accounting & Auditing provides hands-on support across regulatory and ongoing compliance matters.

Get Expert Guidance

Using a DIFC Foundation for Legacy and Wealth Planning

A DIFC Foundation allows global assets to be consolidated under a single structure, supporting easier management, succession certainty, and long-term continuity through perpetual existence.
Assets may include company shares, investments, real estate, and alternative assets located anywhere in the world.
DIFC Foundations may be structured for charitable and philanthropic purposes, including holding charitable endowments, subject to UAE laws.
  • Economic Substance Regulations (ESR): Not applicable to DIFC Foundations
  • Sharia Compliance: Foundations may apply Sharia principles to governance and asset distribution

A DIFC Foundation may apply for residence visas and work permits only if it leases physical office space.

  • Approximate allocation: 100 sq. ft. per visa
  • Establishment Card required
  • Personnel Sponsorship Agreement required

DIFC’s Defined Contribution Workplace Savings Plan replaces traditional gratuity arrangements and offers a globally aligned employee benefits framework.

Cost of DIFC Foundation Setup

The following is a transparent overview of the DIFC Foundation setup costs and recurring expenses.

FEE TYPE AMOUNT (USD) FREQUENCY / NOTES
Registration Fee $0 One-time, no setup cost
Annual Operating License Fee $350 Payable on registration and yearly
Data Protection Notification $750 One-time
Data Protection Renewal $250 Yearly
Confirmation Statement $300 Yearly
Knowledge and Innovation Fee $5.45 Standard regulatory charge
And, here’s the Indicative DIFC fees applicable during the initial year and on an annual basis:
FEE STAGE APPROXIMATE COST (USD)
Year 1 Fees $200
Annual Renewal Fees $500
Note: Professional structuring, legal drafting, and administration services are charged separately.

How Elevate Accounting & Auditing Can Help?

Elevate Accounting & Auditing is a licensed DIFC Company Service Provider delivering end-to-end DIFC Foundation Services Dubai.
As experienced DIFC Foundation Consultants, we provide:
  • DIFC Foundation Company Formation and structuring
  • Customised Charters and By-Laws in collaboration with Legability
  • Registered address services
  • Nominee Council Members and Guardians
  • Ongoing administration and compliance
  • International DIFC Foundation Advisory Services, including Luxembourg structures
If you are working with DIFC Foundation Setup Consultants Dubai or evaluating DIFC Foundation Formation Consultants, Elevate offers a single-point, advisory-led approach from setup through long-term administration.
uae golden visa

Frequently Asked Questions (FAQs) -

A DIFC Foundation is a separate legal entity established under DIFC law, commonly used for asset protection, succession planning, and wealth structuring. Unlike trusts, it holds legal and beneficial ownership of assets in its own name and operates under a common-law framework.
The process involves KYC documentation, drafting a Foundation Charter and By-Laws, appointing a Registered Agent, and submitting the application to the DIFC Registrar of Companies. Once approved, the Foundation is legally incorporated and may proceed with banking and asset transfers.
DIFC Foundation requirements include a Founder, Council Members, a Guardian in specific cases, a registered office in DIFC, and properly drafted constitutional documents. There is no UAE residency requirement for Founders or officers.
DIFC Foundation benefits include strong asset protection, high levels of privacy, flexible governance, succession certainty, and the ability to hold global assets under a common-law legal system.
A DIFC Foundation structure consists of a Founder who contributes assets, a Council responsible for management, a Guardian overseeing the Foundation’s purpose, and Beneficiaries entitled to benefit from the assets, all governed by a Charter and By-Laws.
A DIFC Foundation is suitable for high-net-worth individuals, families, business owners, and investors seeking long-term wealth preservation, structured succession planning, and control over global assets within a regulated and internationally recognised jurisdiction.

For all DIFC foundation-related queries

Reach out to us for reliable guidance on setup, compliance, and ongoing support.
Email Us: parth@elevateauditing.com
+971 56 167 2533
Or
+971 56 167 2533
Scroll to Top