Wealth structure
DIFC foundation – asset protection under common law
Plan succession, pool assets, separate what you own from personal risk: the foundation in the Dubai International Financial Centre is the flexible alternative to a family foundation – with rules that expressly repel foreign forced-heirship claims.
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What is included
- Assessing whether a foundation, a holding or both is the right fit
- Charter and by-laws built around your family and asset situation
- Registration with the DIFC Registrar of Companies
- Appointing the council, guardian and beneficiaries
- Transfer of company shares, real estate, bank accounts and securities
- Registered address in the DIFC, annual accounts and filing duties
How it works
1
Structure meeting
We record your assets, family situation and objective – together with our partner law firms.
2
Establishment
Charter and by-laws, registration in the DIFC and transfer of the assets.
3
Administration
We handle the annual accounts, filings and amendments on an ongoing basis.
Benefits
Why a DIFC foundation?
It combines the design freedom of a family foundation with the common law of the DIFC – and with rules that expressly repel foreign claims.
01
Its own legal personality
Under Art. 10 the foundation is a legal person with the rights of a natural person – it holds assets in its own name, not the founder’s.
02
Shielded from foreign forced heirship
Art. 14 to 16: a transfer that is valid under DIFC law does not become challengeable merely because a foreign law does not recognise foundations or provides for forced heirship. A foreign judgment is not recognised to that extent.
03
Succession without probate
The assets belong to the foundation and do not fall into the estate. Who receives what is set out in the by-laws – no certificate of inheritance, no court, no frozen accounts.
04
Control stays in your hands
The founder may sit on the council (Art. 22(3)). Charter and by-laws determine who decides, who supervises and who benefits.
05
Dubai property held directly
Under the arrangement between the DIFC and the Dubai Land Department, the foundation can hold freehold property in Dubai in its own name on the title deed.
06
Tax transparent on application
A family foundation can apply to the FTA to be treated as an unincorporated partnership (Art. 17 of the Corporate Tax Law, Ministerial Decision 261/2024). The foundation’s own corporate tax return then falls away.
Process
How the foundation comes about
From defining the objective through charter and by-laws to transferring the assets – usually two to four weeks.
1
60 min · remote
Structure meeting
We record your assets, family situation and objective – succession, consolidation or protection. That shows whether a foundation is the right instrument or a holding will do.
2
1–2 weeks
Charter and by-laws
The charter states the name, object, initial capital and duration (Art. 19) and is on the public record. The by-laws govern the council, distributions and beneficiaries – they stay private.
3
a few days
Registration in the DIFC
Application to the DIFC Registrar with charter, council and a registered address in the DIFC. Registration itself is free of charge; we provide the address and the registered agent.
4
with registration
Council and guardian
The council has at least two members (Art. 22). A guardian is mandatory only for a charitable or specified object (Art. 23) – otherwise it is optional as an additional layer of oversight.
5
depends on the asset
Transferring the assets
Company shares, real estate, accounts and securities are transferred. For property the Dubai Land Department transfer fee applies – we calculate it in advance.
6
ongoing
Administration and duties
Annual accounts (Art. 33), notification of any change of council member or guardian within 30 days, annual fee. We take care of it.
Questions about the DIFC foundation?
Book a free initial consultation – we will assess whether a foundation fits your structure.
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Assets
What the foundation can hold
There is no restriction to a single type of asset. In practice these are what goes into the foundation:
- Shares in companies – in the UAE and abroad
- Freehold property in Dubai, on the title deed in the foundation’s name
- Bank accounts and securities portfolios
- Participations, loans and silent contributions
- Trademarks, patents and other rights
- Art, collections and other movable assets
Key figures
The DIFC foundation in numbers
Key takeaways
- Legal form: A legal person in its own right, without shareholders, under the Foundations Law DIFC Law No. 3 of 2018
- Registration fee: None – registration with the DIFC Registrar is free of charge
- Annual fee: Around USD 350
- Initial capital: From USD 100; any kind of property is permitted
- Council: At least two members; the founder may be one of them
- Guardian: Mandatory only for a charitable or specified object, otherwise optional
- Seat: A registered address in the DIFC is required; a registered agent is optional
- Ongoing duties: Annual accounts and notification of any change of council member or guardian
- Timeline: Usually two to four weeks
As at August 2026. Fees and requirements follow the DIFC Foundations Law and the fee schedule of the DIFC Registrar of Companies in force at the time; they can change. This page is not legal or tax advice.
FAQ
Frequently asked questions
The questions we are asked most often about the DIFC foundation.
A legal person in its own right, without shareholders. Under Art. 10 of the DIFC Foundations Law it holds assets in its own name and has the rights of a natural person. It is run by a council according to the rules you set out in the charter and by-laws – comparable to a family foundation, but within the common-law framework of the DIFC.
For three purposes: to plan succession without probate blocking the assets; to pool shareholdings, property and accounts under one roof; and to separate wealth from personal risk.
Registration with the DIFC Registrar is free of charge and the annual fee is around USD 350. On top of that come the initial capital from USD 100, the address in the DIFC, structuring the charter and by-laws and – for real estate – the Dubai Land Department transfer fee. We give you the full figure up front.
Usually two to four weeks. The timeline depends on the structure, on how many assets are being transferred and on how quickly everyone’s documents arrive.
The council runs it and has at least two members (Art. 22). The founder may sit on the council. A guardian is mandatory only for a charitable or specified object (Art. 23); otherwise you can appoint one voluntarily as an additional layer of oversight.
No. The foundation does need a registered address in the DIFC – we provide it. A registered agent is not mandatory for a DIFC foundation, but is useful in practice because the annual accounts are then filed with the agent instead of the Registrar.
DIFC law says so expressly: a transfer valid under DIFC law is not challengeable merely because a foreign law does not recognise foundations or provides for forced heirship (Art. 14), heirship rights over the property of a living person are not recognised (Art. 15), and foreign judgments are not enforced to that extent (Art. 16). Whether that holds in your case depends on your home jurisdiction – that belongs on the table beforehand.
Yes. Under the arrangement between the DIFC and the Dubai Land Department a DIFC foundation can hold freehold property in Dubai directly, on the title deed in its own name.
A family foundation can apply to the FTA to be treated as an unincorporated partnership (Art. 17 of the Corporate Tax Law, Ministerial Decision 261/2024). It is then treated as tax transparent and files no corporate tax return of its own. If the foundation trades, the ordinary rules apply. How your home country classifies the structure is a separate question – for that we work with tax advisers in the German-speaking countries.
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