The UAE Offshore Foundation (RAKICC Foundation) was introduced in 2019 to the suite of investment vehicles and services offered by the United Arab Emirates, and is the most modern element of international asset protection and structuring. The laws and regulations setting international standards and considers the recent, global developments of asset protection. As major point the legislation of the UAE Offshore Foundation will not acknowledge any foreign judgment against the foundation and its founders including foreign heirship rights.
Holding assets personally may leave you at a severe disadvantage. In a world filled with lawsuits, creditors, legal battles, and malpractice suits protecting your assets in a safe, tax neutral and political stable jurisdiction is more important than ever.
Offshore Foundations are structures to which legal ownership of property (money, shares, gift, land or encumbrance) is transferred. They are hybrid in nature, containing vital features of the corporation (legal personality) and the trust (created for a purpose or benefit). As such, foundations are particularly useful as asset management and tax planning tools but in fact are multi-purpose. Establishing an offshore foundation essentially means wanting to have personal or business affairs governed under the statutes of a neutral country. One of the main advantages of going offshore to set up a foundation involves the creation of a hedge which guards the foundation and its property from being voided, invalidated or made defective in any manner by reference to the law of a foreign jurisdiction.
A UAE Offshore Foundation (RAKICC Foundation) is 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 Foundation is a separate legal entity which acts like a trust and operates as a company, with no members or shareholders. The founder of such foundations can be either an individual or a corporate entity. Offshore foundations are normally used as vehicles for asset protection, estate planning, as well as, for wealth management. Such foundations have many similarities, as well as advantages, with offshore trusts.
Like offshore trusts, offshore private foundations are set up in jurisdictions governed by offshore legislations, which are tax free entities benefitting from favorable, advantageous conditions and treatments.
Every Foundation has an, who gives the initial assets to the foundation. The charter can reserve powers and rights to the founder, who can assign the benefit of them to the beneficiaries. A special feature of the UAE Foundation is, that the founder can name himself as beneficiary in order to benefit from the foundation assets without legally owning the assets. Any assignee of the powers and rights can assign them onwards. The foundation has to have a purpose. This can include the benefit of persons (including the founders), who are Beneficiaries.
A guardian acting as trustee of the founder protect the interests of the founder and the beneficiaries and acts on behalf of the foundation, which is governed by the charter and rules. The management of the foundation is undertaken by a council, which can appoint Officers to whom it can delegate day to day administrative functions.