Overview of RAK ICC Foundations
RAK International Corporate Centre (RAK ICC) Foundations are a corporate body created with a legal personality separate from that of its founder(s). The Foundation acts through its council to administer its assets and carry out its objects.
The RAK ICC Foundations Regulations 2019.
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.
Criteria for the incorporation process is as follows:
- Founder (Individual or Body Corporate)
- Council Members (Individual or Body Corporate)
- A Registered Agent
- A UAE registered office
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.
USD 100 (or it’s equivalent in any other currency). Additional Property may be subsequently contributed to the Foundation by a Contributor.
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.
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 of a Foundation into, or from the RAK ICC, is permissible subject to certain conditions.
The registered agent shall maintain the accounting records at the registered office. The accounting records are not subject to public disclosure.
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
Usage of Foundation
- Enhanced succession planning and asset protection Guardian oversight.
- Provide a robust governance structure.
- Distinct legal personality that separates liability whilst maintaining control of assets and have perpetual existence after the lifetime of the Founder.
- Contact a registered agent
- Submit required documents
- Submit your application and obtain your certificate of incorporation
For Individual Shareholders and Ultimate Beneficial Owners:
- Certified copy of in force passport
- Certified copy of current utility bill or local authority tax bill or tenancy agreement or residency certificate showing address of current permanent residence or bank statement.
For Corporate Shareholders:
- Certified copy of Certificate of Incorporation or Registration and any trade license or equivalent
- Certified copy of Memorandum & Articles of Association
- Current Certificate of Incumbency or Register Extracts
- Current Certificate of Good Standing
- Certified copy of passport of the authorized signatory of the corporate shareholder
- Name of shareholders and ultimate beneficial owners (as defined in regulation 26 of the RAK ICC Registered Agent
- Certified copy of corporate resolution approving the incorporation of the RAK ICC company
For Trusts as Shareholders
- Trust deed
- Current certified Register Extract for the Trust
- Details of all additions to the trust (if any)
- Certified copies of passports of settlor, protector & beneficiaries
- Corporate Trustee – as for Corporate Shareholders above
- Individual Trustee – as fo+A12r Individual Shareholders above
For Foundations as Shareholders
- Certified copy of Certificate of Incorporation or Registration and any Trade license or equivalent
- Foundation regulations and charter
- Foundation minutes approving the incorporation of the RAK ICC company
- Current Certificate of Good Standing
- For foundation council members and protectors who are natural persons – see For Individual Shareholders above
For Individual Directors
- As for Individual Shareholder above
- Consent letter from the director & secretary
For Corporate Directors
- Resolution of corporate directors/secretaries accepting the appointment as directors/secretaries of the company
Expected Duration of Service Delivery
- Registration: 5 working days
- Renewal: 3 working days
- Urgent procedure: 24h
IBC Agent in UAE
A RAKICC Business Company must have a Registered Agent in the UAE, and a Registered Office which must be maintained by the Registered Agent in the UAE to which all official communications and notices to the company must be addressed. The Registered Agent must maintain the particulars of the beneficial owners of the company.
BACT is licensed by the RAKICC authorities to offer a full range of company formation and Registered agent services.