3 Simple Steps
Register your RAK ICC Foundation from the convenience of your office/home
Select your package and order
We prepare documents
Registration of Foundation
About RAK ICC Foundations
RAK International Corporate Centre Foundation (RAK ICC Foundation) is a corporate entity established with a legal personality that is separate from its founder(s). The RAK ICC Foundations act through its council to administer its assets and carry out its objects.
RAK ICC Foundations allow various mechanisms for estate planning and are typically used for:
- Enhanced succession planning and asset protection
- Provide a robust governance structure
- Guardian oversight
- Distinct legal personality that separates liability whilst maintaining control of assets and have perpetual existence after the lifetime of the Founder
Awarded by RAK ICC
We work closely with the following banks for opening bank accounts for our clients.
The below promotional packages for RAK ICC Foundations are valid for a limited time.
Platinum includes everything in Gold, plus:
- Assistance with bank account opening for RAK Offshore
- Share certificate(s) for RAK Offshore
- Assigned premier service agent throughout the year
*Yearly Fee from second year: AED 13,999 (govt. fee included)
We accept credit and debit card payments
Here is the process for preparation and registration of RAK ICC Foundation.
Step 1 – Online order
You will need to select your package and place the online order for the registration of your Foundation.
Step 2 – Preparation of documents and signatures
We will prepare your Foundation documents including the Foundation Charter for your signatures. You will need to either visit our offices or sign the documents electronically by email.
Step 3 – Registration
We will submit the documents to the RAK ICC and the Foundation will be established in three (3) working days.
Estate Planning by Way of a Foundation
Estate planning is one of the most crucial aspects in the life of an expat in the UAE. While there are different ways of managing your estate, one of the most effective ways is through a foundation. Creating a foundation is a tax efficient method of protecting your assets. This article explains the functions of a foundation setup with the Ras Al Khaimah International Corporate Centre (RAKICC) in the UAE.
1. Risk of having a Muslim Will in place
While a Muslim Will covers your assets in the UAE, it is not a fool-proof way of ensuring that your assets are distributed only to your preferred beneficiaries. Under Muslim Wills, all the legal heirs under the Sharia Law are required to sign consent letters, wherein the legal heirs waive off their share in favor of a particular person (for example: the legal heirs waiving off their share in favor of your spouse, which is your preferred choice for distribution of assets upon your demise). In the event that the legal heirs refuse to sign the consent letters, they are entitled to their share in your estate according to the Shariah law.
2. Estate Planning through foundation
The foundation has a charter, which is prepared as per the RAKICC Foundations Regulations, 2019. Among the clauses listed in the charter is the requirement to list the beneficiaries of the foundation, by way of qualified recipients (also referred to as beneficiaries). These qualified recipients (for example your spouse and children) are entitled to receive the income and capital of the foundation wholly, thus guaranteeing them your estate in the UAE. Having a foundation also eliminates the need for probate processes at court, which could be time consuming and financially draining.
3. Role of each person in the foundation
The founder is the person who is the creator of the RAKICC foundation. Through the powers given to the founder, they can change the by-laws and the objective of the foundation. They can also control the investment activities and appoint or remove the council members, beneficiaries, and guardians.
(ii) Council members
The council members are appointed to manage the functions of the foundation. There must be a minimum of two (2) council members that are appointed. The council members can be individuals or legal entities. You may appoint a chairman to the foundation who can oversee the operations within the foundation.
(iii) Qualified recipients (beneficiaries)
The qualified recipients are the beneficiaries of all assets attached to the foundation. These individuals can receive amounts from the foundation in any of the following ways: (a) When the council members agree to do so by way of a resolution, (b) If this has already been pre-decided in the charter of the foundation, or (c) When the foundation is dissolved. There can also be a distribution clause included in the charter which would come into effect after the death of the founder or the council members, or through the dissolution of the foundation.
You may therefore appoint your family members to be the beneficiaries of your assets, thus ensuring the complete avoidance of the probate process governed by the Shariah Law.
If a foundation has a charitable or a specified non-charitable object, the foundation must have a guardian in relation to that object. A guardian could be a qualified recipient but cannot be a council member. The guardian shall be responsible to ensure that the foundation is being run by the council members in accordance with the charter as well as the RAKICC Foundations Regulations, 2019. The guardian shall also supervise the activities of the council members in managing the foundation.
A foundation is a corporate vehicle that safeguards the interests of your family. This corporate vehicle can be used by Muslims and non-Muslims alike. Individuals looking for a better and an elaborated mechanism of asset protection and corporate structuring should consider a foundation as one of the best available options in the UAE.
By creating a foundation, it is possible to diversify your investments in bonds, real estate, companies, and bank accounts or portfolios, all of which would be owned by the foundation.
The foundation is a distinct legal personality that separates liability whilst maintaining control of all your assets coupled with having perpetual legal existence even after the death of the founder. Hence, instead of your name showing up on the assets owned by yourself, it would be the name of the foundation that would show up, thus maintaining confidentiality and avoiding any personal liability.
The RAKICC is a flexible and robust corporate body that registers foundations in the UAE. There is no in-person presence required to create a foundation in the UAE with the RAKICC. If you are unsure of the foundation structures, you should seek professional advice on the best way to move forward with your estate planning requirement.
Here are some of the key features of RAK ICC Formation
|Ras Al Khaimah International Corporate Centre
|RAK ICC Foundation
|RAK ICC Foundation is established as a separate legal entity with RAK ICC.
|RAK ICC Foundations Regulations 2019.
|Information Publishing and Confidentiality
|RAK ICC does not keep any public register relating to Foundations. This information is kept confidential as per the applicable laws.
|Requirements for accounting
|Convenient world time zone: GMT+4
|Paid up capital requirement
|No paid up capital requirement.
|Minimum number of members for council
Frequently Asked Questions
Here are some answers to some of the most common questions related to RAK ICC Foundations.
We can help you with the processes in the following government departments.