DIFC Foundation Setup UAE | Nex Consultants

DIFC Foundation - Structured Wealth Protection & Legacy Planning

At NEX Consultants, we provide expert advisory and end-to-end support for establishing and managing a Dubai International Financial Centre (DIFC) Foundation, one of the most robust and internationally recognized wealth structuring vehicles in the UAE. A DIFC Foundation is an ideal solution for wealth preservation, succession planning, asset protection, and structured holding of family and business assets.

What is a DIFC Foundation?
A DIFC Foundation is a legal entity established under DIFC Foundations Law. It combines the characteristics of both a trust and a company, offering flexibility, legal certainty, confidentiality, and strong asset protection.

It is commonly used for:
• Family wealth structuring
• Succession and inheritance planning
• Real estate holding structures
• Intellectual property holding
• Private wealth management
• Sharia-compliant structuring
• Charitable and philanthropic purposes

Key Advantages of a DIFC Foundation

100% Foreign Ownership
No local sponsor is required.

Strong Asset Protection
Assets transferred to the foundation are legally separated from the founder’s personal estate, protecting them from personal liabilities.

Efficient Succession Planning
Ensures smooth intergenerational transfer of wealth while avoiding inheritance disputes.

Confidentiality & Privacy
Provides a high level of privacy for founders and beneficiaries.

Internationally Recognized Legal Framework
DIFC operates under an independent common law system with global recognition and credibility.

Structure of a DIFC Foundation
A DIFC Foundation typically includes:
Founder – The person or entity establishing the foundation and transferring assets.
Council Members – Responsible for managing and administering the foundation.
Guardian (Optional) – Appointed to oversee the council and protect beneficiaries’ interests.
Beneficiaries – Individuals or entities entitled to benefit from the foundation.
Charter and By-Laws – Constitutional documents governing the foundation’s operation and objectives.

Who Should Consider a DIFC Foundation?
A DIFC Foundation is particularly suitable for:
• High-net-worth individuals
• Family business owners
• Real estate investors in Dubai
• International investors seeking structured asset protection
• Entrepreneurs holding multi-jurisdictional assets
• Families planning structured inheritance in the UAE

DIFC Foundation for Real Estate Holding
A DIFC Foundation is widely used for holding Dubai real estate assets. It allows investors to consolidate multiple properties under one legal structure while ensuring succession clarity and asset protection. This structure provides enhanced legal protection, smoother inheritance planning, and separation of personal and business liabilities.

Our DIFC Foundation Services
At NEX Consultants, we provide comprehensive support including:
• Strategic structuring advisory
• Drafting of Charter and By-Laws
• Registration with DIFC Authority
• Registered office arrangements (if required)
• Ongoing compliance and administrative support
• Amendments and restructuring assistance
• Bank account opening coordination
• Multi-jurisdiction asset structuring guidance
We manage the entire process from consultation to successful incorporation and post-setup compliance.

DIFC Foundation vs Trust
Unlike a traditional trust, a DIFC Foundation is a separate legal entity registered within DIFC. It offers enhanced legal certainty and governance structure while maintaining flexibility for wealth and succession planning. Trusts, on the other hand, are typically private arrangements and may not provide the same structured framework for holding UAE-based assets.

Incorporation Timeline
The typical process includes consultation, documentation drafting, submission to DIFC, issuance of registration certificate, bank account opening, and asset transfer. The standard incorporation timeline is approximately 2–4 weeks, subject to documentation and regulatory approval.

NEX Consultants Foundation Registration Services
If you are considering wealth protection, succession planning, or structured real estate holding in Dubai, our specialists at NEX Consultants are ready to assist you with confidential and professional advisory services. Contact us today to schedule a private consultation.

DIFC Structuring & Wealth Planning Experts in Dubai
Whether you are looking for:
• DIFC Foundation setup in Dubai
• DIFC Trust formation services
• DIFC Holding Company registration
• Dubai real estate holding structure
• Family wealth protection and succession planning

NEX Consultants delivers professional, confidential, and fully compliant solutions within the Dubai International Financial Centre framework.

Questions and Answers on DIFC Foundation Setup

1. What is a DIFC Foundation in Dubai?

A DIFC Foundation is a legally registered entity established under the laws of the Dubai International Financial Centre (DIFC). It is widely used for wealth protection, succession planning, asset holding, and family business structuring in Dubai and internationally. A DIFC Foundation operates under an independent common law legal framework and is ideal for high-net-worth individuals, family offices, and global investors seeking structured asset protection.

What are the benefits of setting up a DIFC Foundation?

Key advantages of a DIFC Foundation include:
• 100% foreign ownership
• No UAE local sponsor required
• Strong asset protection framework
• Structured inheritance and succession planning
• Confidentiality and privacy
• Ability to hold UAE and international assets
• Internationally recognized common law jurisdiction
DIFC Foundations are particularly beneficial for real estate investors and family business owners in Dubai.

What is a DIFC Trust?

A DIFC Trust is a legal arrangement created under DIFC Trust Law, where a settlor transfers assets to a trustee for the benefit of beneficiaries. Unlike a foundation, a trust is not a separate legal entity but a fiduciary relationship. DIFC Trusts are commonly used for estate planning, cross-border wealth structuring, and asset protection.

What is a DIFC Holding Company?

A DIFC Holding Company is a corporate entity registered within DIFC primarily used to hold shares in other companies, investments, intellectual property, or real estate assets.
It is commonly structured as a private company limited by shares and is suitable for:
• Holding group companies
• International investment structuring
• UAE mainland and free zone shareholding
• Family-owned business structuring
• Investment portfolio consolidation

What is the difference between a DIFC Foundation, DIFC Trust, and DIFC Holding Company?

A DIFC Foundation is a separate legal entity used mainly for succession planning, asset protection, and wealth structuring.
A DIFC Trust is a legal relationship between settlor and trustee for managing assets for beneficiaries.
A DIFC Holding Company is a commercial entity used to hold shares, investments, and business interests.
In advanced structures, a DIFC Foundation may own a DIFC Holding Company to enhance asset protection and ensure structured succession planning.

Can a DIFC Foundation or Holding Company hold Dubai real estate?

Yes. Both DIFC Foundations and DIFC Holding Companies can hold Dubai real estate, subject to regulatory compliance.
These structures are widely used for:
• Property portfolio structuring
• Inheritance planning for real estate
• Protection from personal liabilities
• Consolidating multiple properties under one entity

Who should consider setting up a DIFC Foundation or Holding Company?

These structures are suitable for:
• High-net-worth individuals
• Family business owners
• Real estate investors in Dubai
• Entrepreneurs with multiple companies
• International investors expanding into the UAE
• Family offices and private wealth managers

Is a Guardian mandatory in a DIFC Foundation?

No, appointing a Guardian is optional. However, in many cases, a Guardian is recommended to provide oversight and protect beneficiaries’ interests.

Can non-residents establish a DIFC Foundation or Holding Company?

Yes. Non-residents can establish a DIFC Foundation, DIFC Trust, or DIFC Holding Company without the need for a UAE national sponsor.

How long does it take to set up a DIFC Foundation or Holding Company?

The standard incorporation timeline is approximately 3 to 6 weeks, depending on documentation and regulatory approval within DIFC.

What documents are required for DIFC Foundation or Holding Company registration?

Commonly required documents include:
• Passport copies of founders, shareholders, and council members
• Proof of residential address
• Source of funds declaration
• Charter and By-Laws (for Foundation)
• Business activity details (for Holding Company)
• Corporate documents if a shareholder is a legal entity
Additional compliance documents may be requested based on the structure.

Is a DIFC structure tax efficient?

DIFC operates within the UAE’s competitive tax environment. The UAE currently has 0% personal income tax, and corporate tax may apply depending on the business activity and structure. Professional structuring advice is essential to ensure compliance with UAE Corporate Tax regulations.

Can a DIFC Foundation own shares in a Holding Company?

Yes. A DIFC Foundation can own shares in a DIFC Holding Company or other UAE and international entities. This structure is commonly used for enhanced asset protection and long-term succession planning.

What are the costs involved in setting up a DIFC Foundation or Holding Company?

The cost depends on:
• Type of entity (Foundation, Trust, or Holding Company)
• Registered office requirements
• Governance complexity
• Compliance scope
• Professional advisory services
NEX Consultants provides tailored quotations after an initial consultation.

Why choose NEX Consultants for DIFC Foundation, Trust, or Holding Company setup?

NEX Consultants provides comprehensive DIFC structuring and registration services, including:
• Strategic advisory on DIFC Foundation, Trust, and Holding Company structures
• Drafting of Charter and constitutional documents
• Complete DIFC registration management
• Regulatory compliance coordination
• Registered office solutions
• Bank account opening assistance
• Ongoing corporate administration support
We specialize in wealth structuring, real estate holding solutions, and cross-border investment planning within the DIFC framework.

What is a DIFC Holding Company?

What is the difference between a DIFC Foundation, DIFC Trust, and DIFC Holding Company?

Can a DIFC Foundation or Holding Company hold Dubai real estate?

Who should consider setting up a DIFC Foundation or Holding Company?

What is the difference between a DIFC Foundation, DIFC Trust, and DIFC Holding Company?

How can I start DIFC Foundation or Holding Company registration with NEX Consultants?

You can contact NEX Consultants for a confidential consultation. Our advisors will assess your objectives, recommend the most suitable DIFC structure, and manage the complete incorporation process from documentation to registration.