RAK ICC Foundations for Asset Protection and Family Succession- A complete Guide.pdf

RAK ICC Foundations for Asset Protection and Family Succession- A complete Guide

1. RAK ICC Foundations for Asset Protection and Family Succession: A
Complete Guide
If you want to protect wealth, manage assets and plan for smooth inheritance in the UAE, a RAK ICC
Foundation is one of the most effective tools available.
The RAK International Corporate Centre (RAK ICC) provides a flexible and secure legal structure for
individuals, families, and businesses intending to have their assets managed and protected over
generations. The RAK ICC Foundation is a separate legal entity that can hold assets, manage wealth, and
even carry on operations well after the life of the founder.
This article explains how to form a RAK ICC Foundation, what laws will govern it, and why it has gained
attention in the UAE as a preferred means for asset protection and succession planning.
What is a RAK ICC Foundation?
ARAK ICC Foundationis a legal entity that is registered under theRAK ICC Foundations Regulations 2019,
as amended in 2025. Essentially, such an entity has its own separate identity from its founder, i.e. the
person who creates it.
The Foundation is run by a Council that acts on behalf of the Foundation and ensures that its objects and
purposes are adhered to. It operates with the help of two key documents:
●Charter– Outline the purpose of the foundation, its structure, and powers.
●By-Laws– describes the internal rules for its management.
The common uses for RAK ICC Foundations among others are:
●Asset protection / wealth management
●Family succession and inheritance planning
●Holding of various assets including real property, shares, or intellectual property
●Managing and distributing income or dividends
●Family charitable or philanthropic activities
●Providing clear and lasting governance.
Legal Framework and Governing Law
RAK ICC Foundations Regulation 2019(as amended 2025) applies to all RAK ICC Foundations. The
amendments strengthen the legal framework and improve asset protection features, as follows:
●Recognition of Foundation as a separate legal entity
●Ability to hold property and assets independently of the founder
●Provisions for migration, permitting a Foundation to migrate in or out of RAK ICC
●Clear rules on limitation of claims and dispute resolution.
A Foundation registered with RAK ICC may choose its governing court jurisdictionbetween either:The
Courts of the Abu Dhabi Global Market (ADGM); or The Courts of the Dubai International Financial
Centre(DIFC)., both of which have common law in place for their jurisdictions.

2. All documentation is in English, thereby enhancing access for international founders and beneficiaries.
Why Establish A Foundation Under RAK ICC?
1. Strong Asset Protection
After assets have been transferred to a Foundation, they are owned by the Foundation itself, and not by
the founder personally. This provides protection for the assets from personal creditors or disputes. It also
offers privacy where detailed information will not be shared unless required by the law.
2. Succession planning
The Foundation allows you to plan how to distribute your wealth after your lifetime. It helps to keep away
complexities arising from forced heirship laws, giving the founder flexibility in determining how the assets
are transferred to his family or beneficiaries.
3. Robust Governance Structure
The governance structure is simple yet effective: Founder→ Council→ Guardian (if needed).
●The Founder establishes the Foundation and states its purpose.
●The Council runs the Foundation and manages its assets.
●The Guardian (if chosen), ensures that the Council operates according to the Foundation's rules
and the wishes of the Founder.
4. Perpetual Existence
A RAK ICC Foundation continues even after the death of its founder and thus facilitates the smooth
transfer of wealth from generation to generation and the management of assets.
5. Minimum Capital
The minimum capital to establish a Foundation is USD 100 (or equivalent), and ongoing administrative
costs are generally low. Additional Property may be subsequently contributed to the Foundation by a
Contributor.
6. International Recognition
The RAK ICC registry operates under international standards. It enjoys wide acceptance for wealth
management, family trusts, and cross-border estate planning, particularly for high-net-worth families.
How to Set Up a RAK ICC Foundation
Step1: Determining the Purpose and Objectives
To establish the foundation, the founder first defines the purpose of the Foundation, whether for family,
business succession, charities, or non-charitable reasons.
Step 2: Key Persons for Appointing
To form a Foundation, you need:
●Founder:It can be a person or a corporate entity.

3. ●Council Members: At least two persons (Individual or Body Corporate) managing the Foundation.
●Registered Agent:An RAK ICC approved agent licensed in the UAE, involved in registration and
compliance.
●Guardian:Required if the Foundation has charitable or non-charitable specified objects, to ensure
proper oversight.
Step 3: Charter and By-Laws Preparation
It is the governing documents of the Foundation.
●The Charterdefines the name, purpose, duration, and structure of the Foundation.
●The By-Lawsgive details on how the Council operates, how beneficiaries receive distributions,
and how the meetings and decisions are managed.
Step 4: Capital Contribution and Registration
The founder contributes to a minimum capital of USD 100 (or its equivalent in any other
currency). Additional Property may be subsequently contributed to the Foundation by a Contributor. The
Registered Agent submits application form, Charter, and By-Laws to the RAK ICC Registrar for approval
and registration.
Step 5: Governance and Continuing Compliance
●The Council administers the Foundation within the framework of the By-Laws.
●The Registered Agent must maintain accounting records at the registered office.
●There is no public disclosure of financial records which ensures privacy.
●Foundations must comply with RAK ICC’s AML/CTF and beneficial ownership requirements
through registered agents and applicable regulations/policies.
●A Foundation may migrate in or out of RAK ICC with the Registrar's approval.
How HHS Lawyers Can Assist
At HHS Lawyers, our estate planning lawyers have vast experience in UAE foundation establishment and
asset protection planning. We can support you in:
●Analyzing whether a RAK ICC Foundation fits your personal or family interests
●Drafting a well-defined, compliant Charter and By-Laws
●Helping you register at RAK ICC
●Assuring that your Foundation structure is compliant with RAK ICC and UAE laws
●Advice on asset transfers, governance, and ongoing compliance
Our goal is to structure a strong, safe and lasting foundation for your family and business assets.
Get in touch with HHS Lawyers today so that we can set up your RAK ICC Foundation and secure your
legacy for generations to come.