A RAKICC foundation is a corporate body with functions and purposes comparable to a company, but functionally similar to that of a common law trust. It is a powerful financial instrument with its own legal personality and regulatory framework, perfectly suited for enhanced protection of assets and family wealth. It is a highly flexible and tax-efficient succession planning instrument without public records of its activity, successors or assets that maintains uninterrupted existence long after the lifetime of the founder. Furthermore, a RAKICC foundation can be an excellent tool for a dynamic governance structure allowing unified control over an individual’s or family’s entire estate including all and any corporate entities.
Structure of a RAKICC Foundation
Unlike a company, a foundation cannot carry out commercial activities other than what is necessary for its purposes and can be both charitable and non-charitable in nature. Its main purpose is to provide secure holding, succession and management of assets of any form including gold, art, bank account deposits and portfolios, investment bonds, company shares, real estate property and any other personal chattels. A RAKICC foundation can be registered with a minimal capital of as little as USD 100 and can grow indefinitely throughout its lifespan.
The Founder – This is the individual or corporate entity that initially registered and funded the RAKICC foundation. Ras Al Khaimah does not pose any restrictions on the nationality or residency of the founder.
Foundation Council Members – Every RAKICC foundation must have at least two council members that are appointed to carry out the objects of the foundation, ensure compliance with its Regulations, Charter and By-Laws and are in charge of maintaining the internal accounting records of the foundation. The council members can be individuals or corporate entities with no restriction to nationality or jurisdiction. They can be the founder itself, family members, a trusted friend or a professional advisor.
The Guardian – This is an individual or corporate body that is in charge of supervising that the duties and responsibilities of the council members are carried out in line with Regulations and By-Laws of the foundation and the RAKICC regulatory legislations. In order to ensure the smooth operation and compliance of the foundation, it is highly advisable that a professional legal representative or registered agent knowledgeable in the local laws is appointed for this position.
The Designee – This is the recipient of all the foundation’s assets in case of its termination.
The Qualified Recipient – This is the person or persons that are entitled to receive a designated amount or share of the foundation’s assets in accordance to the Charter and By-Laws. There are no restrictions to the nationality, age or relationship status of the qualified recipients which provides a major flexibility advantage for inheritance and succession planning as it is not dependent on the local inheritance laws of the founder’s country of residence or asset location.
The registration process of a RAKICC Foundation is quite quick and simple, provided that a qualified Registered Agent, like our firm, accurately prepares and submits the necessary documentation and property drafted By-Laws and Charter of the foundation. Upon registration of the foundation, the local registry will require a recent certified copy of the identification document, utility bill, completed FATCA form and professional and bank reference letter of all the foundation assignees, as stated above. This information will be kept at the registry in full confidentiality without public accessibility and will need to be updated yearly upon foundation renewal. Although a RAKICC foundation is required by law to prepare and maintain on-going accounts, it is not required to submit them to the regulatory authority and is not subject to payment of any tax. Furthermore, it is worth noting that a RAKICC foundation must have a Registered Agent and Registered Address in the UAE designated to holding the foundation’s financial and statutory records in case of a sanctioned inspection.
As a well-established registered agent for RAKICC and RAKEZ our firm can offer a full spectrum of high-quality services for the registration and management of your RAKICC foundation. We can advise and assist with portfolio administration, take on the accounting and administrational duties of the foundation as well as the legal entities under its umbrella and can provide qualified Guardian and Council Member services.
For more information on a RAKICC Foundation or an alternative solution for asset protection, please feel free to contact our team for a complimentary consultation.
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