RAK ICC Foundation Setup
A legally autonomous structure for protection, management, and inter-generational transfer of family wealth. 2025 amendments: firewall provisions, 3-year limitation period, arbitration powers. From $15,000.
Information on this site is of a general nature and does not constitute investment advice or an offer. © 2026 RAK Family Office. RAKEZ, UAE.
What changed in RAK ICC 2025
Amendments to the RAK ICC Foundations Regulations entering force in 2025 materially strengthened foundation protection and introduced new dispute resolution mechanisms.
Firewall protection
Asset transfer validity, beneficiary rights, and Council authority are governed exclusively by UAE law. Foreign judgments on these matters have no legal effect in the UAE. Per Art. 4, RAK ICC Foundations Regulations 2025.
3-year limitation period
Any challenge to asset transfer into the foundation — including creditor fraud claims — must be brought within 3 years of transfer. After expiry, the transfer cannot be challenged.
Arbitration powers
Disputes between the Council, founder, and beneficiaries can be resolved through private arbitration with enforceable awards. This eliminates lengthy court proceedings and ensures confidentiality.
Duress protection
Actions taken under coercion from a foreign judicial or administrative body — including asset repatriation demands — are nullified under UAE law and carry no legal consequences for the foundation.
How to register a RAK ICC Foundation
Structuring & KYC
Defining foundation purpose, Council composition, beneficiaries, and protector. Collecting KYC documentation (passports, source-of-funds evidence). Timeline: 1–2 weeks.
Document preparation
Drafting the Foundation Charter and By-Laws. The Charter is registered with RAK ICC; the By-Laws remain confidential and contain detailed beneficiary terms. Timeline: 1 week.
RAK ICC registration
Submission by a licensed registered agent to RAK ICC. Approval and issuance of certificate of registration. Timeline: 3–10 business days.
Bank account opening
Selecting a UAE partner bank (RAKBANK, Mashreq, FAB, Emirates NBD). Completing bank due diligence. Timeline: 2–4 weeks.
Asset transfer
Formal transfer of assets into the foundation. Cash — immediately; real estate and company interests — 30–90 days. The 3-year limitation period begins from the transfer date.
RAK ICC vs DIFC, ADGM, Cayman
| Parameter | RAK ICC | DIFC | ADGM | Cayman |
|---|---|---|---|---|
| Setup cost | $15,000–25,000 | $80,000–200,000+ | $60,000–150,000+ | $20,000–50,000 |
| Timeline | 4–6 weeks | 8–16 weeks | 6–12 weeks | 6–12 weeks |
| Minimum capital | $100 | $0 (DFSA discretion) | $0 (FSRA discretion) | $0 |
| Firewall provisions | Yes (2025 amendments) | Partial (DIFC court) | Partial (ADGM court) | Yes (STAR Trust) |
| Public register | No | No | No | No |
| CIS specialisation | High (RAK Family Office) | Moderate | Low | Low |
| Annual maintenance | $2,000–4,000 | $15,000–40,000 | $10,000–30,000 | $5,000–15,000 |
Sources: RAK ICC 2025, DIFC Authority 2024, ADGM 2024, PwC UAE. Costs are indicative and depend on structure complexity.
Cost of RAK ICC Foundation registration
One-time costs
- RAK ICC registration fee: $3,000–5,000
- Legal fees (Charter + By-Laws): $5,000–15,000
- Due diligence & KYC: $1,000–3,000
- Bank account opening: $1,000–2,000
- Total first year: $15,000–25,000
Annual recurring
- RAK ICC licence renewal: $1,500–2,500
- Registered agent: $500–1,000
- Annual audit (if required): $0–2,000
- Total per year: $2,000–5,000
Comparison
An equivalent DIFC structure costs $80,000–200,000+ in annual maintenance. RAK ICC Foundation is 10–20x cheaper with comparable legal protection for $10M–$50M families.
Frequently asked questions
Sources
- [1] RAK ICC. Consolidated Foundations Regulations 2025.
- [2] Campden Wealth / UBS. Global Family Office Report 2024.
- [3] DIFC Authority. Family Wealth Centre Annual Report 2024–2025.
- [4] EY. UAE Corporate Tax Guide for Family Structures. 2024.
- [5] PwC UAE. Individual Taxation and Wealth Planning. 2024.
Start your RAK ICC Foundation
Initial consultation is free and confidential. We will define the optimal foundation structure, Council composition, and asset transfer strategy.