Corporate foundation setup in the UAE
A foundation is a separate legal entity with no shareholders, built to protect assets, keep a business or legacy going, and plan succession.
Overview
What is a corporate foundation?
A foundation is an independent legal entity with its own assets and a charter that sets its purpose. Unlike a company it has no shareholders. Instead its assets are held for beneficiaries or stated purposes, under the control of a council.
Businesses and families use foundations to keep a company going if its owner dies or is incapacitated, to separate assets from personal and corporate risk, and to put a clear governance framework behind inheritance and philanthropy.
Key benefits
Why choose Foundation
Continuity
A foundation can continue indefinitely, regardless of the founder's circumstances.
Asset protection
Held in a separate entity, assets are insulated from many personal and business risks.
Succession governance
A clear framework for how assets pass to heirs.
Flexible purposes
Can serve private, family or charitable objectives.
Social responsibility
Aligns CSR efforts with business goals and strengthens reputation.
Separate legal identity
Its own legal personality, distinct from the founder.
Compare
Foundation vs company
Two different tools for two different jobs.
| Feature | Foundation | Company |
|---|---|---|
| Ownership | No owners. Assets held for beneficiaries and purposes. | Shareholders own it |
| Governance | A council acts under the foundation's charter | Directors answer to shareholders |
| Continuity | Continues independently of the founder | Can be affected by death or share transfers |
| Succession | Rules set in the charter and regulations | Shares pass through the estate |
| Typical use | Wealth planning, asset holding, philanthropy | Trading and operating a business |
Is it right for you?
Who should choose this?
Family business owners
Keep the business stable across generations.
Founders planning succession
Set the rules for who benefits, and how.
Corporates with CSR programmes
A formal vehicle for giving and community work.
Philanthropists
Structure ongoing charitable giving.
Wealth planners
Hold assets under a governance framework.
Multi-heir families
Simplify distribution among several beneficiaries.
It may not be the right fit if you…
- Trading or operating companies
- Short-term or single-deal projects
- Anyone looking for a quick tax shortcut. Tax treatment depends on purpose and structure.
Set-up process
How we set it up
- 1
Define mission and objectives
What the foundation is for, and who or what it should benefit.
- 2
Choose the legal structure and registry
Foundation regimes differ by registry. We match the right one to your goals.
- 3
Draft the charter and regulations
The rules that govern purpose, control and distributions.
- 4
Appoint the founder, council and any guardian
Set who controls and who oversees the foundation.
- 5
File and register
We submit the application and complete due diligence.
- 6
Open the bank account
We prepare documents for banking and ongoing administration.
Documents
What you need to provide
Founder and council
- Passport copies and proof of address
- Source of wealth information
- Council member and guardian details
- For corporate founders: incorporation documents and board resolution
Foundation documents
- Charter and regulations
- Statement of purpose
- Beneficiary or purpose details
- Asset schedule being transferred
Cost
What affects the cost
There is no single price. Cost depends on the factors below, and we send a written quote with every fee itemised.
Registry
Fees differ by registry and foundation type.
Legal drafting
Charter and regulations require careful drafting.
Structure complexity
Number of beneficiaries and asset classes.
Ongoing administration
Registered office, council support and renewals.
Banking support
Optional help with account opening.
Pricing
Foundation costs
Indicative pricing only. Government fees and final costs may vary.
| Cost component | Estimate |
|---|---|
| Licence fee | AED 12,500 |
| Corporate-owned shareholder fee | AED 750 |
Banking
Opening a bank account
Approval is the bank's decision and can't be guaranteed. A clear structure and complete documents are what improve your chances.
Clear purpose
Banks need to understand what the foundation is for.
Source of wealth
A documented history of how the assets were built.
Governance clarity
Who sits on the council and who controls decisions.
Beneficiary transparency
Who the intended beneficiaries are.
Complete KYC
Full documentation for founders and council members.
Compliance
Ongoing requirements
Annual renewal
Maintain registration with the registry.
Council and records
Keep minutes, registers and decisions properly recorded.
UBO and beneficiary reporting
Keep ownership and control information up to date.
Registered office
Maintain the required address and appointed officers.
Tax position
Treatment depends on the foundation's purpose and structure. We confirm it with your tax adviser.
Why set it up with Brightlink
Structure first
We check whether this structure fits your goals before you spend anything.
Jurisdiction comparison
We compare registries on cost, banking acceptance and flexibility.
Banking-ready documents
We build a clean document pack and profile before any bank application.
Ongoing support
Renewals, amendments and compliance handled as your structure evolves.
Explore
Other structures
Foundation FAQ
A foundation has no shareholders. Its assets are held under a charter for beneficiaries or purposes and governed by a council, which gives it continuity beyond the founder.
It can add a layer of separation between you and your assets, but protection depends on the registry, how the foundation is set up and the timing of transfers. We advise before you commit.
Not automatically. Tax treatment depends on the foundation's purpose and structure, and we confirm it with your tax adviser.
Yes, many are set up for charitable purposes, and others for private or family purposes. Rules differ by registry.
It depends on the registry and how complete your documents are. We give you a timeline once we've reviewed your structure.
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