13 Jul RAK Foundation: Why Ras Al Khaimah is Perfect for Your Foundation
This article explores the benefits of setting up a RAK Foundation.
Ras Al Khaimah, the northernmost emirate in the United Arab Emirates (UAE), is emerging as a distinctive hub for business and philanthropic activity. Offering a robust economic and legal framework, it presents an attractive proposition for establishing foundations.
A foundation is a legal entity established by an individual, a family, or a group of individuals. Foundations can be set up for various purposes, including asset protection, social welfare, wealth structuring, and inter-generational legacy planning.
Ease of Setting Up RAK Foundation
One significant advantage of setting up a RAK Foundation is the ease and simplicity of the process. The Ras Al Khaimah International Corporate Centre (RAK ICC) is a highly regarded registry for international business that provides a flexible and straightforward framework for establishing foundations. It allows for a streamlined process for registration and governance, reducing bureaucratic hurdles and facilitating quick operationalization of the foundation.
Legal and Financial Autonomy
In Ras Al Khaimah, foundations enjoy extensive legal and financial autonomy. Once established, they become independent legal entities distinct from their founders. This distinction protects the foundation’s assets from claims against the founder’s personal assets. This legal separation enhances the confidence of stakeholders, knowing the foundation’s assets are protected and managed independently.
Tax Advantages of RAK Foundation
The UAE, including Ras Al Khaimah, has a favourable tax regime for foundations. The region offers zero tax on the income and profits of a foundation, no capital gains tax, and no withholding tax. Such a structure is conducive to the longevity and effectiveness of the foundation, as more resources can be allocated directly to the causes the foundation supports.
Confidentiality
Ras Al Khaimah ensures a high degree of confidentiality for the founders and beneficiaries of a foundation. The details of the founder and the beneficiaries are not part of any public register, providing privacy to those involved. This confidentiality can be especially advantageous to those wishing to maintain a low profile.
RAK Foundation Support for Global Operations
A foundation registered in Ras Al Khaimah is not restricted to operating within RAK ICC. It can carry out its activities globally, making it an excellent international operations vehicle. Moreover, the reputation of the UAE and its favourable diplomatic relations worldwide ensure the foundation’s global recognition and respect.
Setting up a foundation in RAK offers numerous benefits, from ease of setup, legal and financial autonomy, attractive tax advantages, and confidentiality, to support global operations. It is an attractive location for organizations seeking an efficient and supportive environment to realize their objectives. With these advantages, it is no surprise that Ras Al Khaimah continues to grow in appeal as a global hub for foundations. If you want to start a foundation in RAK, contact us today for a free consultation.
You might be interested to read more about the Comparison Between Trust and Foundation and Starting a UAE Foundation.
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