Corporate Foundation Structuring in RAKICC
On 15 December 2019, the Ras Al Khaimah International Corporate Centre (RAKICC) issued the RAKICC Foundations Regulations, instituting a new Foundation framework. The worldwide standards and market demand that informed the creation of these rules are being strictly adhered to. For either altruistic or utilitarian ends, a founder can set up a foundation under the Foundations regime. Before discussing corporate foundation structuring in RAKICC, we need to understand corporate foundation structuring
What is Corporate Foundation Structuring?
A Foundation has some features of both a corporation and a trust despite being neither. It is a legally recognized entity that can own property, enter into contracts, and participate in legal procedures in its own right. However, a Foundation does not have stockholders like a corporation does.
What about First Investment Corporate Foundation Structuring?
An initial sum of money, called the endowment, is given to start the Foundation off. These funds are managed in accordance with the contractual principles rather than the fiduciary duties stipulated in the Foundation’s establishing agreement.
What is Bylaw in Corporate Foundation Structuring?
Corporate Foundation Structuring is established in its bylaws. Corporation’s bylaws are kept secret. The Foundation’s assets may be left under the founder’s control with some latitude, depending on the terms of the constitution.
What is Council?
A Foundation’s council, rather than a trustee, is responsible for managing the organization’s assets and pursuing its stated goals. The council is analogous to a board of directors in that it can include a single member or many. As with a trust protector, a “guardian” might be chosen to watch over the council and make sure it does its job.
What is the Result of Corporate Foundation Structuring?
Financial structuring, inheritance and tax planning, asset protection, and charitable organizations are just few of the many uses for foundations.
Why Corporate Foundation Structuring in RAKICC matters?
The purpose of the Foundation Regulations is to protect the wishes of the founder and the Foundation’s assets. Key features of the regime maintaining privacy by not making the Register open to public inspection, providing flexibility through options for continuation, migration, and amalgamation etc, requiring the engagement of an authorized registered agent and a registered office in the RAK free zone for registration, and providing the choice of ADGM or DIFC Courts. The approvals and operations are faster in RAKICC compared to other parts of world.
It’s worth noting that RAKICC isn’t the only United Arab Emirates free zone authority to offer Foundation benefits. Foundation regimes in both the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) offer a variety of benefits to participants.
In conclusion, a Corporate Foundation Structuring is a useful tool for better governance, asset protection, and succession planning. It creates a separate legal entity from which the founder is immune to lawsuits and from which a successor trustee can exercise authority over the business after the founder’s death.
How 3A Global Corporate Services Provider Can help Your organization?
Corporate Foundation Structuring is a complex process and it needs an experienced and talented pool of professionals. We have 16 years of experience in corporate affairs and foundation structuring in UAE.
To know about our corporate banking services click here
To know about corporate auditing services click here
Request a Free Consultation
Consult right now with our experienced team for complete solutions to your business requirements.
