A Guide To Setting Up A Foundation In RAK ICC Freezone

The Ras Al Khaimah International Corporate Centre (RAK ICC) has established itself as a premier destination for the incorporation of Foundations in the United Arab Emirates, providing a sophisticated legal structure that integrates asset protection, succession planning, and wealth management solutions. Falling under the RAK ICC Foundations Regulations of 2019, as amended in 2025, RAK ICC Foundations offer high net worth individuals, families, and corporate groups a versatile and powerful tool for structuring long-term wealth. This article will serve as a definitive resource for incorporating a foundation in RAK ICC Freezone, reviewing the regulatory environment, structural needs, and key considerations necessary for successful incorporation.

Regulatory Framework

RAK ICC Foundations are governed by a broad regulatory framework set out under the RAK ICC Foundations Regulations of 2019.These regulations have seen major overhauls as of July 31, 2025, with major improvements to asset protection provisions and bringing RAK ICC Foundations in line with the best international practices. The Foundation structure is the result of major global benchmarking efforts to ensure compliance with suitable international standards.

A RAK ICC Foundation is described as a corporate body with a separate legal personality distinct from its founder(s), incorporated for the purpose of dedicating certain assets to certain charitable or non-charitable objectives. The regulations state that foundations shall have the capacity, rights, and powers of a natural person, capable of holding property, entering into contracts, and bringing legal proceedings in their own name. Notably, the 2025 amendments included strong firewall provisions to shield foundations from foreign judgments in conflict with UAE law, with a three-year statute of limitations on challenges to the establishment of foundations or the transfer of foundation assets.

Structural Components And Governance

The RAK ICC Foundation’s structure includes several important elements, each with a distinct role in the foundation’s management. The Founder is the individual or company that creates the foundation and sets its goals. Although the founder establishes the foundation, they can decide to retain control of it or not, depending on the foundation’s goals and the rules outlined in its constitutional documents.

The Foundation Council is composed of at least two members, who may be individuals or corporate bodies, including the founder, relatives, trusted individuals, or professional advisors. Members of the council are charged with the responsibility of managing the foundation’s property and implementing its goals as outlined in the Charter and By-laws.

Each foundation is required to have a Registered Agent who maintains a registered office at RAK ICC and is responsible for keeping accounting records and ensuring that the foundation complies with all applicable regulations. The registered agent is the foundation’s main contact person with the RAK ICC authorities and must be licensed in accordance with RAK ICC Registered Agent Regulations 2018.

Formation Process And Documentation Requirements

Establishing a RAK ICC Foundation begins with the filing of an application to the Registrar. The necessary documents include: (i) duly filled application form signed by the founder; (ii) the foundation’s Charter meeting the regulatory requirements; (iii) the foundation’s By-laws; (iv) copies of the passport and address proof for the founder, all council members, and the guardian; (v) proof of existence for corporate founders or council members; and (vi) appointment letter of the registered agent.

The minimum initial capital requirement is USD 100 or its equivalent in any other currency, which is one of the most liberal foundation systems in the world. Additional properties can be later contributed to the foundation by contributors. The government incorporation fee is AED 750, which does not include professional and annual registered agent fees. The registration procedure takes 5-7 working days after the submission of complete documentation to the concerned authority, although this may differ depending on the complexity of the application and due diligence procedures.

Conclusion

RAK ICC Foundations are a complex and ever more appealing option for international wealth structuring, succession planning, and asset protection. The broad regulatory framework, further improved by the 2025 changes, offers a solid legal basis that blends common law traditions with contemporary asset protection elements. The competitive advantages of the jurisdiction include low capital thresholds, high privacy safeguards, perpetual existence, and participation in well-recognized international dispute resolution systems.

To set up a successful foundation, it is essential to pay close attention to constitutional drafting, governance arrangements, and compliance formalities. RAK ICC Foundations can be an effective means of securing family wealth, planning succession, and pursuing philanthropic goals in a secure and internationally respected legal environment.