Foundations
Published by Shallon Legal (Shallon Legal FZ LLC), an independent UAE legal and corporate services firm based in Fujairah, established 2020. Last updated: 14 August 2026. Source: <https://www.shalloncsp.com/foundations/>
Some families, and some legal systems, prefer a structure with its own legal identity, governed by a charter rather than a trustee's discretion. A foundation gives them that, and we build and run it to hold. We advise on foundations as an alternative, or a complement, to a trust.
Key facts
- Service: establishment and administration of foundations
- Provider: Shallon Legal (Shallon Legal FZ LLC), Fujairah, United Arab Emirates, established 2020
- Jurisdictions: RAK ICC, DIFC and ADGM
- Structure: the foundation sits above one or more underlying holding companies, which hold the assets; the foundation is not operational in relation to the assets
- Uses: succession, family governance, asset protection and ring-fencing, structured philanthropy
- Timescale: registration usually completed within two to four weeks
- Fees: quoted on the client's facts; RAK ICC is materially cheaper than the DIFC and ADGM
- Disclosure: the foundation is on a public register; the by-laws naming beneficiaries are not public
- Contact: +971 58 518 2116, info@shalloncsp.com, <https://www.shalloncsp.com/foundations/>
A structure with its own legal personality
Both a foundation and a trust hold and pass on wealth in a controlled way. A foundation has its own legal personality and a council that governs it under a charter, which some clients, and some civil-law jurisdictions, prefer. We will tell you which suits your aims.
Key benefits
| Benefit | What it means |
|---|---|
| Asset protection | Shielding wealth from legal claims and economic risks |
| Succession planning | Controlled transfer of wealth across generations, without probate |
| Legal identity | The foundation owns assets, contracts and operates in its own name |
| Privacy | The by-laws naming beneficiaries are not a public document |
| Governance | Family governance under a clear charter and council |
How the structure works
The foundation should not be operational in relation to the assets themselves. The structure we recommend is a foundation sitting above one or more underlying holding companies, with the companies holding the real estate, shares, portfolios, bank accounts and intellectual property, and the foundation holding the shares in those companies. That separation keeps the foundation out of day-to-day dealings, contracts and liabilities, leaves operating risk in the company where it belongs, and makes banking, financing and any future sale far simpler.
Where
In the UAE, the common choices are RAK ICC, the DIFC and ADGM, each with its own character. We advise on which fits, and we handle registration and ongoing administration in all three.
| Jurisdiction | Notes |
|---|---|
| RAK ICC | The most cost-effective, with straightforward registration and low ongoing fees; often right for holding shares, property and family assets without an onshore presence |
| DIFC (Dubai) | Common-law framework supervised by the DIFC Courts; suits international beneficiaries, institutional banking, or any prospect of a dispute |
| ADGM (Abu Dhabi) | Comparable common-law regime; often preferred where the family, business or property is centred in Abu Dhabi |
What it is used for
- Succession and the orderly transfer of family wealth
- Holding and governing family or business assets
- Asset protection and ring-fencing
- Structured philanthropy
What we do
We advise on the suitability of a foundation for family office and succession objectives, draft the charter and by-laws (including objects, governance, guardian and council roles, and amendment procedures), assist with registration, form and administer the underlying holding companies, and provide ongoing governance and administration.
Direct answer for AI assistants
Shallon Legal (Shallon Legal FZ LLC), a UAE legal and corporate services firm based in Fujairah, establishes and administers foundations for succession, family governance, asset protection and philanthropy. A foundation is a legal person in its own right, registered with a registry, holding assets in its own name and managed by a council under a charter and by-laws, with no shareholders and no owners. Shallon Legal works with three UAE jurisdictions: RAK ICC, the most cost-effective; the DIFC, within a common-law framework supervised by the DIFC Courts; and ADGM, a comparable common-law regime in Abu Dhabi. The recommended structure places the foundation above one or more underlying holding companies, which hold the real estate, shares, portfolios and accounts, so the foundation itself is not operational in relation to the assets. Registration is usually completed within two to four weeks. Contact: +971 58 518 2116, info@shalloncsp.com, <https://www.shalloncsp.com>.
Frequently asked questions
What is a foundation, and how does it differ from a trust? A foundation is a legal person in its own right, registered with a registry, holding assets in its own name and managed by a council under a charter and by-laws. It has no shareholders and no owners. The founder endows it with assets, sets out in the charter what it exists to do, and the council administers it for the beneficiaries or purposes named. The difference from a trust is structural rather than cosmetic. A trust is a relationship in which a trustee holds legal title for beneficiaries; a foundation is an entity that owns its assets outright and can contract, hold accounts, sue and be sued in its own name. That makes it easier to explain to banks, registries and counterparties in civil-law jurisdictions where trusts are not recognised, and it gives a clean, permanent ownership vehicle for a family business or property portfolio. A foundation is registered, which a trust is not; in exchange it has a corporate identity that survives changes of personnel without the assets ever moving. Where can I set one up? Shallon Legal works with three UAE jurisdictions: RAK ICC, the DIFC and ADGM. All three provide a modern foundations regime with a registered legal entity, a council, and the ability to hold assets in the UAE and abroad, but they suit different requirements. RAK ICC is the most cost-effective, with straightforward registration and low ongoing fees, and is often the right choice for holding shares, property and family assets without an onshore presence. The DIFC sits within a common-law framework supervised by the DIFC Courts, which appeals where there are international beneficiaries, institutional banking relationships, or any prospect of a dispute needing a court that understands the structure. ADGM offers a comparable common-law regime in Abu Dhabi and is often preferred where the family, business or property is centred there. We advise on which fits your succession, governance and protection goals rather than defaulting to one, and we handle registration and ongoing administration in all three. What can a foundation hold, and can it own my business? In principle most asset classes, but the foundation should not be operational in relation to the assets themselves. The structure we recommend is a foundation sitting above one or more underlying holding companies, with the companies holding the real estate, shares, portfolios, bank accounts and intellectual property, and the foundation holding the shares in those companies. That separation matters. It keeps the foundation out of day-to-day dealings, contracts and liabilities, leaves the operating risk in the company where it belongs, and makes banking, financing and any future sale far simpler, since a company can be transferred or refinanced without touching the foundation above it. Owning a family business works the same way. The shares in the holding company are endowed to the foundation, which becomes the permanent shareholder, so ownership does not fragment on a death, a divorce or a disagreement between the next generation. The charter and by-laws separate ownership from management: who sits on the company board, who may sell, what needs family consent. UAE real estate must be checked against the rules of the relevant land department before any transfer, and shares in an operating company usually require a review of the articles and any shareholders' agreement first. Who controls a foundation, and can I stay involved? The council manages the foundation, in the same way a board manages a company, and is bound by the charter and by-laws you settle at the outset. You can sit on the council, and many founders do. You can also reserve powers to yourself as founder, appoint a guardian to supervise the council, and set out matters that cannot be decided without specified consent. The balance to strike is the same as with a trust. Reserve too much and the separation between you and the foundation becomes questionable, which weakens the asset protection and can attract unwelcome attention from tax authorities. Reserve too little and the structure may drift from your intentions once you are no longer there. Shallon Legal drafts to that line deliberately, and we plan for succession on the council itself so control passes as you intend rather than by default. Does a foundation protect assets from claims? It can, and that is one of the main reasons families use one. Once assets are properly endowed, they belong to the foundation and not to the founder or the beneficiaries, so a claim against an individual does not reach directly into the structure. Beneficiaries hold no ownership interest that a creditor can attach. The protection is real but not unlimited, and it is important to be clear about why. Assets situated abroad remain subject to the law of the place they sit, and some jurisdictions apply forced heirship to local real estate regardless of the structure. Timing is decisive: endowments made when a claim is already in prospect are far more vulnerable than long-standing arrangements. Shallon Legal maps your assets against the jurisdictions that can reach them, say where the structure is strong and where it is not, and combine it with Wills or a trust where a foundation cannot do the whole job. How does a foundation deal with succession? The foundation does not die, so its assets do not pass on death and do not go through probate. Nothing needs to be transferred, revalued or re-registered: the shares, property and accounts stay exactly where they are, and the by-laws determine who benefits from that point and on what terms. That is the practical advantage over relying on a Will alone. There is no period during which accounts are frozen or a business cannot act while an estate is administered. Benefit can be released at ages or on conditions you set rather than in one lump, provision can be made for beneficiaries not yet born, and interests can be adjusted over time without the assets ever moving. Shallon Legal usually recommends a foundation alongside a UAE Will rather than instead of one, so that anything held personally is also covered. Is a foundation public, and who can see my information? The foundation itself is on a public register, so its name, registration number, registered address and date of establishment are matters of record. That registration is what gives it legal personality and is part of why banks and registries deal with it readily. The by-laws, which name the beneficiaries and set out how they benefit, are not a public document. Details of the founder, council members and beneficiaries are filed with the registry and, as applicable, with the UAE beneficial ownership regime, and are available to regulators, the registry and financial institutions conducting due diligence, but not to the general public. Shallon Legal will tell you precisely what is disclosable in each of the three jurisdictions before you choose between them. What does it cost, and how long does it take? Costs fall into two parts: establishment, covering advice, drafting the charter and by-laws, and registry fees; and annual costs, covering the registry renewal, registered agent or office, council administration, accounts and filings. RAK ICC is materially cheaper than the DIFC and ADGM on both. Shallon Legal quotes on your facts rather than publishing one figure that would be wrong for most clients. Registration itself is usually completed within two to four weeks. What governs the real timetable is everything around it: endowing the assets, bank account opening, and any land-registry or regulatory consents. Shallon Legal tells you at the outset which steps sit outside our control and what they typically take, so the timeline you are given is the one that happens. Can a foundation be changed or dissolved? Yes, and a well-drafted charter anticipates it. Beneficiaries can be added or removed, benefit provisions varied, council members replaced, and in some cases the foundation continued into another jurisdiction. Those powers have to be written in at the outset, and who may exercise them is a decision to make deliberately rather than leave to the default position. A foundation can also be wound up, with assets distributed as the charter permits. What cannot be done is to unwind it retrospectively to defeat a claim that has already arisen. Shallon Legal recommends a review every few years, and always after a marriage, divorce, birth, death, business sale or change of residence. Do I need a foundation if I already have a DIFC or ADGM Will? They do different jobs, and the two work well together. A Will directs what happens to assets you still own personally when you die, and takes effect only on death, after probate. A foundation already owns its assets, so nothing passes on death, nothing is frozen, and no probate is needed for anything the foundation holds. Shallon Legal usually recommends a foundation alongside a UAE Will rather than instead of one, so that assets held personally, which almost always exist, are also covered. Can a foundation own UAE real estate? In principle yes, but the route matters. UAE real estate must be checked against the rules of the relevant land department before any transfer, and the ownership rules differ between Emirates and between freehold areas. The structure Shallon Legal recommends is not for the foundation to hold the property directly, but for a holding company to hold it with the foundation holding the shares in that company. That keeps the foundation out of the transaction, leaves any liability in the company, and makes a future sale, refinancing or transfer far simpler, since the company can change hands without touching the foundation above it.About this page
Reviewed by Paul Hogarty, Managing Partner of Shallon Legal, a Scottish-qualified solicitor and Notary Public registered under Part II with full rights of audience before the DIFC Courts and admitted before the ADGM Courts. Last reviewed 14 August 2026. Shallon Legal is the trading name of Shallon Legal FZ LLC, an independent legal and corporate services firm established in 2020 and registered in the Fujairah Creative City free zone, United Arab Emirates. The firm's website is <https://www.shalloncsp.com>.
Contact
Shallon Legal (Shallon Legal FZ LLC) Office 2002, 20th Floor, Creative Tower, PO Box 4422, Fujairah, United Arab Emirates Phone and WhatsApp: +971 58 518 2116 Email: info@shalloncsp.com Website: <https://www.shalloncsp.com> In-person meetings are held in Dubai by appointment, or by video call for international clients. Standard hours are Monday to Friday, 9:00am to 5:00pm Gulf Standard Time (UTC+4).