Registration of RAK ICC Foundation

RAK International Corporate Centre (RAK ICC) stands out as one of the swiftly expanding international corporate registries, known for its outstanding reputation in adhering to regulations and delivering professional services.

Foundations under RAK International Corporate Centre (RAK ICC) are established as corporate entities with a legal identity distinct from that of their founder(s). These Foundations operate through their Council, overseeing asset administration and the fulfillment of their objectives.

Uses of RAK ICC Foundations

• Enhanced succession planning and asset protection;
• Providing a robust governance structure;
• Guardian oversight;
• A distinct legal personality that separates liability while maintaining control of assets and has perpetual existence after the lifetime of the founder;
• Holding assets;
• Distribution of dividends from operating companies;
• Holding shares in RAK ICC companies;
• Managing and holding the founders’ assets for the benefit of the qualified recipients;
• Holding operating companies;
• Family philanthropic purposes

Advantages of RAK ICC Foundations

• Internationally compliant Registry;
• Robust governance structure;
• Attractive tax regime effective in the UAE;
• No requirement to file or audit accounts – the company otherwise remains subject to RAK ICC AML requirements set out in RAK ICC Business Companies Regulations 2018;
• Possibility to migrate to RAK ICC from overseas;
• Low registration and administrative costs;
• Perpetual concept;
• Flexibility with beneficiary classes

Overview of RAK ICC Foundations

• Governing Law – The RAK ICC Foundations Regulations 2019.
• Governing Jurisdiction – A choice of common law jurisdictions between either the Courts of the Abu Dhabi Global Market or the Courts of the Dubai International Financial Centre.
• Language – English.
• Incorporation Process – Criteria for the incorporation process is as follows:
  1. Founder (Individual or Body Corporate);
  2. Council Members (Individual or Body Corporate);
  3. A Registered Agent;
  4. A UAE registered office;
  5. A Foundation that has a charitable object, or a specified non-charitable object must appoint a Guardian (Individual or Body Corporate) accordingly. Completion of the Application Form signed by the Founder and subsequently submitted to the Registrar. The Application Form shall contain the above details, together with the Charter and the By-Laws.
• Minimum Capital – USD 100 (or its equivalent in any other currency). Additional property may be subsequently contributed to the Foundation by a Contributor.
• Control Mechanisms – The Foundation is governed by the Council members in accordance with the provisions of the By-Laws which is a private document. The Council is comprised of a minimum of 2 members who could be either the founder, family members, trusted advisors, or professional advisers (Individual or Body Corporate). The guardian (if appointed) supervises the Council members and always ensures strict compliance with the By-Laws of the Foundation.
• Right to Information – The Registrar shall maintain a Foundations Register which shall contain basic details of each Foundation (name and date of registration, details of the founder, Council members, registered agent). All other information is treated as private and shall not be disclosed unless required by relevant authorities.
• Migration – Migration of a Foundation to or from the RAK ICC is permitted subject to certain conditions.

Required RAK ICC Foundation set-up documents & information

1. The client to provide:
   – Company name;
   – Corporate structure (founder, a minimum of 2 Council members, guardian);
   – Business plan.
2. Compliance procedure :
   – Passport copy of the founder / Council members/ guardian (valid for min 6 months);
   – UAE residence visa and Emirates ID copies (if applicable);
   – Proof of address (utility bill);
   – CV for the last 10 years.
   *In RAK ICC a Foundation can be incorporated only through registered agents.
   **Additional documents might be required depending on a particular case.
3. RAK ICC Foundation registration documents:
   – Charter;
   – By-Laws.

Timelines: registration of a RAK ICC Foundation takes 3 business days.

The cost of registering a Foundation in RAK ICC – from AED 19 000