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Establish a Foundation in Dubai

Establish a Foundation in Dubai

Apart from companies, natural persons may also register foundations in Dubai. Mainly known as social clubs, non-governmental organizations (NGOs) in Dubai may register with the Chamber of Commerce. One must comply with several requirements to set up one of the available types of foundations in Dubai. Foreign NGOs are also allowed to set up subsidiaries in Dubai.

Our company incorporation consultants in Dubai can offer more information on the requirements related to starting a foundation in the emirate.

Types of foundations in Dubai

As mentioned above there are several types of associations that can be established in Dubai by both foreign and local companies or individuals. A Dubai foundation may obtain one of the following statuses:

  • an NGO;
  • an association;
  • a social club.

The most spread type of non-profit organization in Dubai is the social club which is registered with the Community Development Authority (CDA). Also, social clubs may be divided into two categories: social care facilities and social club event organizations. For each type of foundation, a special license must be obtained with the CDA.

Our Dubai company formation agents can offer more information on how to register a non-profit organization with the CDA.

Registering a social club in Dubai

Just like any other type of Dubai company, the association must also have, a trade name, a memorandum, and articles of association and must appoint a management board. Apart from these, the following documents must be filed with the CDA upon the registration of the social club:

  • an application form issued by the CDA;
  • information about the founders and members of the foundation;
  • information on the activities the NGO will undertake;
  • a list of the professionals who will be involved in the association.

Following that, the association will apply for the license based on the activities it will undertake. The social care facility or the social club event license can be obtained by a foundation in Dubai.

What are the differences between different types of foundation management in the UAE?

We specify that in the UAE, foundations can be incorporated under three important regimes, as follows:

Although these three regimes are similar, there are also differences in regulation:

  • The seat of a foundation in Dubai largely depends on the location of the assets that a founder wants to protect.
  • Depending on particular needs, you can choose the right regime to establish a foundation in Dubai.
  • There is political stability in all three regimes, and the legal system is largely based on English law, with small variations.
  • Regardless of the location chosen for opening a foundation in UAE, the corporate tax is 0%.

Reasons why you should establish a foundation in Dubai

There are many reasons why a foundation can be established in UAE, Dubai. In most of them, those interested have specific assets in UAE and want a certain level of protection. Here are the main reasons why foreigners or local businessmen want to open a foundation in Dubai:

  • Because they have a simple structure, local and foreign investors prefer to establish a foundation to protect their wealth. The help of a company formation agent in Dubai is useful in this regard.
  • If the founder of the non-governmental organization has financial difficulties, the assets are protected from creditors.
  • Foundations in Dubai are tax-efficient because they can hold capital income and specific assets without them being taxed. No personal or corporate income tax is imposed.
  • Retirement plans, company share schemes, and employee pensions can be established and successfully managed with the help of a foundation in Dubai. If you are interested in company formation in Dubai, do not hesitate to contact us for more information.
  • The way in which personal assets are distributed in the family can be established with the help of legacy planning. A foundation in Dubai can be an optimal solution in this sense and you might be interested in the registration formalities.
  • The collected funds can be used for charitable purposes, as this is established by the regulation of the respective foundation. We recommend that you contact us for complete details in this regard. We offer support if you want to open a company in Dubai, including a foundation.

On the other hand, if you want to relocate staff to your foundation, you may discuss with us the formalities for immigration to Dubai.

Recent UAE economy facts

If UAE is the chosen business destination for your future projects, you should know that the country’s economy grew by approximately 7.9% in 2022. Here are other interesting details:

  • UAE’s GDP in 2022, totaled about AED 1.632 trillion.
  • The non-oil GDP in the UAE reached around AED 1.174 trillion, with positive growth in all essential sectors of the country.
  • According to specialists and economists, UAE wants to double the size of its economy by the end of 2031. As such, yearly GDP growth must surpass the 7% rate.

We recommend our local services for opening a foundation in Dubai

If you want to open a foundation in Dubai, it would be good to consider specialized help in this regard. You can confidently call on our specialists for advice in this endeavor. Our company formation agents in Dubai know the formalities and collaborate with the relevant institutions for registration. Starting from this aspect, we advise you to benefit from a good beginning in the sector that interests you most, without encountering document issues or formalities that you may not be familiar with.

For full information on how to establish a foundation in Dubai, please contact us. You can also rely on us if you want to set up a business in Dubai and need assistance in preparing the documents related to the registration of the NGO, for instance.