Trusts & Foundations Formation Services in Dubai, UAE

Hexagon Advisory in Dubai provides professional trust and foundation formation services, enabling you to efficiently manage and protect your family wealth and assets. The tax-efficient environment of Dubai and the UAE makes it an ideal hub for high-net-worth individuals and families to securely execute wealth and succession planning.

Forming family trusts and foundations in Dubai and the UAE is a smart financial strategy designed for wealth preservation, confidentiality, and asset management. The experts at Hexagon Advisory offer personalized consultancy, including the preparation of trust deeds, foundation charters, and bylaws, ensuring a smooth compliance and registration process.

What are Trusts and Foundations in Dubai?

A trust in Dubai is a legal relationship involving a settlor, trustee, and beneficiary. The main purposes of a trust include wealth management, asset protection, and succession planning. Under UAE and DIFC/ADGM laws, trusts offer flexible and tax-efficient structures that are both confidential and legally secure.

A foundation is an independent legal entity that combines features of a trust and a corporate body. The founder contributes assets, and the Council manages the foundation. DIFC and ADGM foundations offer perpetual existence and flexible governance options.

Key Differences

• Trust: A legal relationship; private arrangement where the settlor transfers assets to the trustee

• Foundation: A legal entity governed by a Council with perpetual existence

• Trust assets: Generally held for beneficiaries

• Foundation assets: Used for founder-defined objectives

• Liability: Trustees are responsible in a trust; limited liability applies to Council members in a foundation

• Benefits: Wealth protection, asset management, confidentiality, tax efficiency, and philanthropic objectives

Key Benefits of Setting Up Trusts and Foundations in Dubai

• Wealth preservation: Secure management of assets for families and high-net-worth individuals

• Asset protection: Shielding assets from creditors and legal disputes

• Tax efficiency: Exemption from capital, profit, and income taxes in DIFC and ADGM jurisdictions

• Succession planning: Seamless intergenerational wealth transfer and inheritance

• Philanthropy: Supporting charitable and social initiatives

Types of Trusts and Foundations Available in the UAE

• Family Trusts: Revocable and irrevocable structures

• Charitable Trusts: For social and philanthropic causes

• Non-Charitable Trusts: For specific family or business purposes

• DIFC Foundations: Offer digital registration, full foreign ownership, and confidentiality

• ADGM Foundations: Provide flexible trustee and Council structures with strong asset protection

• Offshore Trusts: Designed for international clients

How to Register a Family Trust or Foundation in Dubai

1. Choose a jurisdiction – DIFC or ADGM

2. Prepare the trust deed or foundation charter

3. Appoint trustees and protectors

4. Submit the application and obtain approvals

5. Ensure UAE legal and regulatory compliance

6. Pay the required fees and complete registration

Hexagon Advisory provides complete guidance at every step to ensure a seamless and secure registration process.

DIFC Trusts and Foundations Formation

DIFC is a prime jurisdiction for setting up trusts and foundations. Its Common Law framework and independent judicial system offer strong advantages for foreign investors and expatriates.

Key benefits:

• Full confidentiality and foreign ownership

• Digital registration – no physical presence required

• Flexibility in holding assets (property, shares, bank accounts)

• Tax-free benefits on income and capital

ADGM Trusts and Foundations Formation

ADGM is another prominent UAE hub offering a flexible and secure legal framework for trusts and foundations.

Key features:

• Flexibility in appointing trustees and Council members

• Tax-free status with robust asset protection

• Perpetual existence for foundations and discretionary trusts

• Ideal for high-net-worth individuals and family offices

Key Considerations When Choosing Trustees and Protectors

• Understanding the roles and responsibilities of trustees

• Appointing UAE-resident trustees for better tax efficiency

• Importance of protectors in discretionary trusts

• Ensuring effective communication and management consistency

FAQs – Trusts and Foundations in Dubai

Q1: What is the difference between a trust and a foundation?

A: A trust is a legal relationship where the settlor transfers assets to the trustee for the benefit of the beneficiaries. A foundation is a legal entity managed by a Council and has perpetual existence.

Q2: Can foreigners set up trusts and foundations in Dubai?

A: Yes. Both DIFC and ADGM allow non-residents to establish trusts and foundations with full confidentiality and ownership rights.

Q3: How long does a trust or foundation last in the UAE?

A: Trusts can be revocable or irrevocable depending on the trust deed. DIFC and ADGM foundations have perpetual existence unless dissolved by the Council or founder.

Q4: Are trusts subject to UAE income tax?

A: No. Trusts and foundations in the UAE are exempt from taxes on income, profits, and capital, making Dubai a highly tax-efficient jurisdiction for wealth preservation.

Q5: What is the DIFC trust registration process?

A: Choose DIFC as the jurisdiction, prepare the trust deed, appoint trustees, submit the application to the DIFC Registrar, ensure compliance, pay fees, and receive approval.
Hexagon Advisory assists clients throughout the process.

Q6: What types of trusts and foundations can be formed in the UAE?

A: Family trusts (revocable/irrevocable), charitable trusts, non-charitable trusts, DIFC and ADGM foundations, and offshore trusts for international clients.

How Hexagon Advisory Can Assist You

Hexagon Advisory Dubai provides comprehensive, personalized consultancy for:

• Family wealth planning and succession strategies

• Trust deed and foundation charter preparation

• Guidance on trustee and protector appointments

• Support with registration, compliance, and reporting

Contact: 📞 +971 52 132 6794 | ✉️ info@hexagonadvisory.com