You may have worked a lot for your next generation. Now, you want to keep your estate safe so your grandchildren can proudly take your legacy. Such cases are handled in the UAE with the best idea of establishing a foundation. The foundations are created by families who have been rich for generations, and they want to manage their wealth. It allows them to have better tax planning and asset protection. Islamic law does not require the forming of a Foundation or Trust. Therefore, anyone in the UAE can create a foundation to protect their wealth and assets. All such legal expertise or new subjects need to have experts from legal back ground. Yes, we want to say that Emirati attorneys in Dubai or lawyers in Dubai are needed for any sort of foundation or other legal subjects. You can knock them to grab the latest details and figures require to be spent to perform such topics or subjects.
Understanding of Foundation
The Foundation is a separate entity from the Founder’s personal property. It is similar to a business, but unlike a corporation, a foundation does not have shares or stockholders. However, the Foundation has to be involved in commercial activities that benefit the beneficiaries. The Foundation can be trusted with a Guardian, but Council Members run it.
Importance of Forming Foundations in the UAE
Formation of a Foundation is a good idea for rich families as it allows them to protect their assets by holding shares in subsidiary firms. Further, the Foundation can be used for estate planning, especially when the Founder has assets in different locations in the UAE or internationally. They can distribute the assets and money according to their desires. Moreover, foundations help support charity and protect assets from forced inheritance.
When the nuclear family changes into bigger families, they need more organized ways and leadership to take their businesses to the next level. Therefore, the Foundation in the UAE is an easy approach to transferring management while they are still controlling their firm. However, if they choose proficient management, it will ensure that important people are not incapacitated.
How to Create a Foundation in the UAE?
You will need a team of legal experts to help you create a Foundation in the UAE. The Founder and the Council must do some legal paperwork to establish a foundation. There could be one Founder and two council members to form a foundation. The Founder does not have rights once the Foundation is established. However, they appoint a Guardian who will oversee the Council and ensure that the members of Councils are performing their responsibilities properly. The Guardian is entitled to accept or reject the decisions made by the Council. Most importantly, all foundations in the UAE should have a registered office. In most cases, the address of the Registered Agent is mentioned.
Paperwork to Create Foundation
You will need to provide the details of each person and member, including a copy of their passport, residential address, and utility bills. In addition to these documents, the company documents shall be submitted along with the articles of the corporation and a list of partners and directors.
However, the foundations can only be established through approved authorities such as ADGM, DIFC and RAK ICC. You will not have to worry about forming a foundation; you can seek legal services to create one. Most of the law firms provide you end-to-end services. You must find a law firm with experience establishing foundations, as the paperwork is tricky and not everyone can manage it alone. Get hassle-free legal services so your grandchildren can take your legacy to the next level. We believe the content will help you to grab very essential information. You can further contact the UAE National attorneys and lawyers in Dubai.
