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Establishing a Foundation in Dubai International Financial Centre (DIFC) Free Zone, Dubai, UAE. Service offer

Dubai, the UAE’s second-largest emirate and most populous one, is a major international business hub with more than 20 free zones. The Dubai International Financial Centre (DIFC) offers financial and non-financial structures, including foundations, family offices, holding companies and SPVs, for estate and tax planning, asset protection and corporate structuring, with English law serving as a residual legal framework for civil and commercial matters. Key advantages of doing business in the UAE include a stable banking system, access to US dollars, the ability to establish local substance and relatively fast residence visa procedures.

Foundation in DIFC, Dubai

The Emirate of Dubai is located on the Arabian Peninsula, in the south of the Persian Gulf. Among the seven emirates that make up the UAE, it is the most populated one and the second largest after Abu Dhabi. Dubai hosts more than 20 free zones.

Dubai International Financial Centre (DIFC) specializes in financial licences but also offers various non-financial vehicles for estate and tax planning, asset protection, corporate structuring, and charity, excluding public fundraising. Such structures include:

  • Foundation,
  • Family office,
  • Holding company,
  • Management office,
  • Special Purpose Vehicle (SPV), and
  • Others.

DIFC ranks high among the UAE free zones and is popular with foreign investors largely because English law applies there (as a residual fallback governing civil and commercial legal relations).

Major advantages of doing business in the UAE:

  • Stable banking system;
  • Ability to work with US dollars;
  • Ability to create substance in the country of registration;
  • Ability to obtain residence visas quickly.

Foundation setup

Setting up a foundation in DIFC includes the following steps:

1) Preliminary stage:

  • Document collection;
  • Compliance check;
  • Payment of fees for services;
  • Selection of an office or registered agent;
  • Completion of the application to be submitted to the Regulator;
  • Registration at the free zone portal.

It is necessary to provide documents for all the individuals in the foundation structure (either originals or notarized copies):

  • proof of ID;
  • proof of residential address;
  • CV.

It is also necessary to provide proof of the source of funds to be transferred to the foundation (for example, a statement of a personal bank account for the past 6 months, or latest 2 annual financial statements of a legal entity that will be financing the DIFC foundation).

A prior visit to the UAE by the foundation officers is NOT mandatory for establishing a foundation. It is irrelevant how old the UAE entry stamp is.

2) Applying to the free zone for initial approval (pre-approval):

  • Payment of application fees;
  • Filing of an application for pre-approval of registration and subsequent grant of a licence via the free zone portal;
  • Compliance check conducted by the Regulator;
  • Video identification conducted by a free zone representative and signing of documents.

3) Registration and licensing:

  • After pre-approval by the free zone, filing of an application to register a foundation;
  • Renting an office (if there is no registered agent to provide its office space);
  • Completion of the foundation registration and grant of the licence.

4) Final stage:

  • Opening an account in the UAE;
  • Transferring assets to the foundation.

When reviewing the application for pre-approval, the free zone authority conducts a background check (Security Check) on the foundation officers and beneficiaries. At this stage, the free zone may request additional documents, such as a police clearance certificate. The check normally takes 2 to 4 business days.

The total time to set up a DIFC foundation is 15 business days, on average.

Upon completion of the registration, you can proceed with visas and bank account opening. Please contact your GSL consultant for details.

IMPORTANT: Since the UAE is not party to the Hague Convention of 5 October 1961, which abolishes the requirement for legalization of foreign official documents, and does not administer apostille, it is necessary to submit the documents of a local company/foundation for legalization to the consulate of a country where they will be used.

Any fees for translation, notarization, legalization and apostille are charged additionally.

Visa application

The UAE does not have such concept as a residence permit. UAE migration rules require the issuance of residence visas which in practice are similar to a residence permit.

A residence visa can be obtained on the following grounds:

  • based on owning a UAE onshore company – investor visa;
  • by making an employment contract with a UAE onshore company – work visa;
  • for investment (in real estate, bank deposit, etc.); and
  • other.

A work visa is normally valid for 2 years. Upon expiration, a visa can be renewed. Investment visas are issued for a period of 5 or 10 years.

Application for residence visas includes the following steps (a visa can only be applied for after the establishment of a foundation):

1. Opening an Establishment Card (the migration file of the foundation) – 3-5 days. This document is necessary for the foundation to be able to apply for residence visas in the future.

2. Submitting documents for a residence visa and obtaining an Entry Permit (permission to enter the country) – 5-7 days.

To obtain a residence visa, an individual must enter the UAE on an Entry Permit.

If at the time of issuing of Entry Permit the applicant is already in the UAE, then in order to complete the issuance of a residence visa without leaving and re-entering the country, it is necessary to change the status of the visa. The service of changing the status of a visa is provided upon request and is subject to additional charges.

3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 business days.

The applicant needs to:

  • undergo a medical examination (blood test and chest X-ray);
  • submit biometric data (retina and fingerprints scan).

After collecting the passport with a residence visa inserted into it, one can leave the country.

4. Obtaining a resident ID card - Emirates ID.

The card is issued a few days after the issuance of a visa. Personal presence is not required to collect it.

IMPORTANT: One is not required to reside in the UAE permanently, but a residence visa will be cancelled if one stays outside the UAE for more than 6 months.

The fees for obtaining a residence visa in start at USD 2 750. Please contact your consultant for more details on the application.

Structure

Founder

A founder can be a legal entity or an individual over the age of 18. There are no residency requirements for the founder.

The minimum number of founders is 1; there is no maximum number set by the free zone.

Council Members

A foundation is required to have a Council to manage its assets and implement its objectives. Only an individual over the age of 18 can act as a Council member. There are no residency requirements for Council members. The founder can also be on the Council.

The minimum number of Council members is 2; there is no maximum number set by the free zone.

Beneficiary

A beneficiary of a foundation is any individual who has the legal right to exercise, or who actually exercises, significant control or influence over the activities of the governing body, person, or other entity managing the assets or implementing the objectives of a foundation.

Default Recipient

In addition to the beneficiary, the Charter or internal documents may designate a default recipient to whom all of the foundation’s assets are transferred (if not otherwise dealt with) upon its winding up. The founder can be a default recipient.

Registered Agent

Only a qualified person may act as a registered agent, i.e. a person who is:

  • licensed by DIFC to act as registered agent of a foundation within the scope of permitted business; and
  • registered with the Dubai Financial Services Authority (DFSA) as a Designated Non-Financial Business or Profession (DNFBP) licensed to act as corporate services provider in DIFC.

Guardian

A guardian must take reasonable steps to ensure that the Council performs its functions. The Charter may authorize a guardian to approve or disapprove specific actions of the Council. The founder may also act as guardian.

All individuals undergo assessment by the Regulator. As part of its assessment of whether the foundation officers are Fit and Proper, the Regulator considers the following:

  • Education, qualifications, and work experience (no specific requirements in this regard are given in legislation or guidelines);
  • Reputation, personal characteristics, financial integrity, and reliability;
  • Ability to perform the assigned role effectively, honestly, and fairly;
  • Financial position.

Registered Office

A foundation is required to maintain a registered office in DIFC. A foundation can make an office lease agreement with the free zone authority; the address of that office will be considered the foundation’s official registered office address. Alternatively, if a foundation appoints a registered agent, the requirement to have a registered office may be waived.

DIFC offers various office packages tailored to client needs in terms of type and number of licences, number of visas, the need for substance and placement in the free zone: from flexi desk (dedicated space or workstation in premium business centres) to warehouse facilities.

Initial Capital of the Foundation

It is capital transferred to the foundation for its establishment; it may consist of any assets and may be provided as a gift or for valuable consideration. After the initial capital has been accumulated, any person can contribute additional assets to the foundation, provided this is permitted by the Charter.

The assets of a foundation consist of:

  • initial capital of a foundation;
  • any additional amount contributed to a foundation and accepted by its Council;
  • income derived from the investment of a foundation’s capital; and
  • any other assets acquired by the Council in line with the Foundations Law (DIFC Law No. 3 of 2018).

Accounts and Audit

A foundation must keep and maintain accounts and accounting records and make them available as required by the Foundations Law (DIFC Law No. 3 of 2018).

Accounting records include records and underlying documentation comprising primary and other accounting entries and relevant supporting documents, such as:

  • receipts;
  • records of electronic money transfers;
  • invoices;
  • contracts;
  • general and subsidiary ledgers, ledger entries, and other accounts adjustments not reflected in ledger entries; and
  • worksheets and spreadsheets supporting expense allocations, calculations, reconciliations, and disclosures.

A foundation’s accounts must be approved by the Council and signed on its behalf by at least two Council members.

A foundation must within thirty (30) days after the accounts have been approved by the Council:

  • if it has not appointed a registered agent, file a copy of its annual accounts with the Registrar; or
  • if it has appointed a registered agent, provide a copy of its annual accounts to its registered agent.

Fees[1]

Services
Fees (USD)
Establishing a DIFC foundation, including[2]:
- setting up a foundation (name check; collection, preparation and submission of documents for registration; provision of original constitutive documents);
- liaising with government authorities regarding all matters of a foundation;
- maintaining a foundation’s online service portal with the free zone and migration authorities;
- monitoring changes in legislation, informing about changes and the need to revise the activities/structure of a foundation.

This does NOT include compliance fee for persons in the structure, or fees charged by the free zone for establishing a foundation; the latter are payable according to the invoice issued by the free zone.

6 500
Registered agent and a registered office for 1 year

Other options – upon request.

7 400
Annual renewal of a foundation, including:
- registered agent and a registered office for 1 year;
- licence renewal;
- liaising with government authorities regarding all matters of a foundation;
- maintaining a foundation’s online service portal with the free zone and migration authorities;
- monitoring changes in legislation, informing about changes and the need to revise the activities/structure of a foundation;
- filing of annual accounts.

This does NOT include compliance fee and preparation of accounts.
Other options – upon request.

7 400
Obtaining a residence visa
(this is the cost of one visa – investor visa), including:
- preparing, executing and agreeing the necessary documentation with the migration authority;
- accompanying the client to a medical clinic for medical examination;
- accompanying the client to the Federal Migration Service for fingerprinting and biometrics;
- submitting to the migration authority documents for issuing and stamping a visa;
- filing an application for and obtaining a residence card;
- selecting an insurance company for medical insurance (if required);
- transport expenses.

This does NOT include any government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport); they are payable according to the invoice issued by the free zone.

2 750
Renewal of a residence visa
(this is the cost of one visa – investor visa)
Renewal of a residence visa (an investor visa is valid for 2 years) requires taking the same actions and paying the same fees as upon initial application.
2 750
Assistance with opening corporate and personal bank accounts, including[3]:
== services of:
- analyzing a foundation’s structure, its activities / business model / turnover;
- selecting banks individually for you – up to 3 options;
- preparing descriptions of the banks indicating the criteria by which they were selected;
- preparing a description of further steps in the account opening procedure;
750 (stage I)
== services of:
- collecting and analyzing the corporate and other documents required to be submitted to the selected bank;
- putting together a detailed account opening application, including complete information on the foundation, its owners and counterparties;
- sending the application to one of the banks of your choice;
- preparing a detailed description of all further steps in the account opening procedure;
- preparing for an interview;
- accompanying you at a personal/online meeting with a banker if necessary;
- interacting with the bank at ALL stages;
2 000 (stage II)
== payment of the remainder of the full fee, after receiving notification from the bank that the application is under final review by the bank’s compliance team;
750 (stage III)
== an additional success fee is charged if the account is opened faster than the average standard procedure time, which for corporate accounts is 3 months.
+10% to the fee for the service
Compliance fee
Payable in the cases of:
- establishing a foundation,
- renewal of a foundation,
- winding up of a foundation,
- transfer out of a foundation,
- issue of a power of attorney to a new attorney,
- change of a foundation officer, except the change to a nominee,
- signing of documents.
440 (standard rate – includes the check of 1 individual)
+ 200 for each additional individual (foundation officer, beneficiary) or legal entity (foundation officer, beneficiary) if such legal entity is administered by GSL
+ 265 for each additional legal entity (foundation officer) if such legal entity is not administered by GSL
550 (rate for High Risk structures – includes the check of 1 individual)
135 (signing of documents)
Keeping a foundation’s accounting records
Maintaining a systematic archive of foundation documents and providing them to the client upon request
200 / hour
Preparing accounts, conducting an audit and submitting accounts to the free zone authority
400 / hour[4]
Tax advice on VAT and other matters
400 / hour
VAT registration
1 500
Preparing and submitting VAT returns
200 / hour

[1] The fees are valid as of September 2026.

[2] The cost of a package may vary depending on the number of officers within the foundation structure (founders, beneficiaries, council members e.t.c.) and size of office (the office size dictates how many residence visas can be issued).

[3] For more details on how fees for account opening assistance are calculated, please contact your GSL consultant.

[4] The fees for preparing accounts and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to 400, depending on the type of work and qualification of a specialist involved, but are not less than USD 2 200 – fees for audited accounts with a minimum number of transactions.

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