DMCC has adopted rules for a new kind of entity: the foundation. Registration opens once DMCC publishes its guidance and online onboarding, which it expects in the coming weeks. The framework was announced in June 2026, and the rules were formally established on 23 September 2026.
A foundation is a legal entity with no owners that holds assets for the people you choose, under rules you write.
This guide answers the questions we hear most. What does a DMCC foundation do, who controls it, what does it cost, and how does it compare with the older options? It also flags what DMCC hasn't confirmed yet. For the wider picture, start with our overview of UAE wealth structuring in 2026.
Key TakeawaysA DMCC foundation is a separate legal entity with no shareholders. You can set one up with starting assets worth as little as USD 100.You can keep real control: sit on the board, reserve key powers and pick a supervisor. Payouts still need a board decision.Its protection is aimed at inheritance claims and court orders from outside the UAE. It is not written to override UAE inheritance law.DMCC hasn't published a fee yet, and the rules point to an annual audit unless DMCC waives it. Government fees are only part of the bill: legal drafting, service provider and audit fees usually cost more than the government fees.It suits families whose companies already sit in DMCC. If you need a published price or direct Dubai property ownership today, waiting makes sense.
In this article:
- What is a DMCC foundation?
- What can you use it for?
- Who runs it, and how much control do you keep?
- How well does it protect the assets?
- Who sees what?
- What does it cost?
- DMCC, DIFC or ADGM?
- Can a DMCC foundation own Dubai property?
- How is a DMCC foundation taxed?
- Who should move now, and who should wait?
- Frequently asked questions
- Next steps
- Sources and legal references
What is a DMCC foundation?
Photo: Guilhem Vellut, CC BY 2.0.
A DMCC foundation is its own legal person. It's separate from you, from the people who run it and from the people who benefit. It has no shareholders and issues no shares.
Three roles matter. The founder is you: the person who sets it up and puts assets in. The council is the board that runs it. The beneficiaries are the people it exists to benefit, usually your family.
You set the rules in a founding document called the charter. It states the foundation's purpose, the starting assets, the registered office and how long it lasts. Private detail, such as who gets what and when, can sit in separate by-laws. These are kept at the foundation's office and shown to DMCC on request.
A few basics are fixed by DMCC's new rulebook:
- The starting assets must be worth at least USD 100.
- The name must end in "Foundation FZCO".
- It needs a DMCC licence and a registered office in the free zone.
- By default, it can't be a charity. A foundation whose main purpose is charitable, religious, cultural or educational giving needs DMCC's written approval, and DMCC can withdraw that approval later.
One detail surprises most people. The rules name the DIFC Courts as the court that supervises a DMCC foundation, not a separate DMCC court. DMCC can name a different court in future, so check this at setup.
What can you use it for?
A DMCC foundation is built for holding and passing on family wealth. The main uses are succession planning, holding shares in family companies, and keeping a family business together across generations.
Say you own a trading company in DMCC and a property portfolio held through other companies. You could move the shares into a foundation. On the text, the shares then sit outside your personal estate when you die. The council keeps running things under the rules you wrote.
The bigger draw is having everything in one place. DMCC already licenses holding companies and special purpose vehicles. A family can now hold a DMCC holding company and its SPVs through a DMCC foundation, all under one free zone and one registrar. Our guide to UAE holding company structures covers that middle layer. If you're weighing a single-asset vehicle elsewhere, compare it with an ADGM SPV.
There's a family office angle too. DMCC's family office rules already list a foundation held 100% for one family as a possible investment vehicle for a single family office. The licence itself sits in a DMCC company, not the foundation. It needs at least USD 1 million in liquid or investible assets, and every director must be a family member.
Who runs it, and how much control do you keep?
You can keep a lot of control. The council must have at least two members, and you can be one of them. A company can serve on the council too.
With exactly two members, every council decision needs both to agree. That's worth thinking about before you pick the second name.
The guardian is a supervisor who watches the council. The guardian can attend council meetings but has no vote. While you're alive, a guardian is optional. Once no founder is alive, one must be appointed. The guardian can't also sit on the council or be the only beneficiary.
The charter can also reserve powers to you or to someone else you name. These include:
- changing the charter;
- directing investments;
- appointing and removing council members;
- adding or changing beneficiaries.
There's one firm limit. Any payout or transfer of assets still needs a council decision. You can steer the foundation, but you can't treat its bank account as your own.
Here the DMCC rules differ from the DIFC. In a DIFC foundation, reserved powers end when the founder dies, or after 50 years if the founder is a company. The DMCC rules contain no such end date, so a power held by someone other than you could outlast you indefinitely. Consider writing your own end date into the charter.
How well does it protect the assets?
Well against foreign inheritance claims, foreign court orders and, after three years, creditors. It isn't designed to override UAE inheritance law.
Once assets go in, they stop being yours. The foundation owns them outright. Beneficiaries have no claim on specific assets until the council actually pays something out.
Foreign inheritance claims. A transfer into the foundation can't be undone because another country's inheritance rules give relatives a fixed share. The same goes for foreign laws that don't recognise foundations at all.
Foreign court orders. Judgments from courts outside the UAE that clash with these protections won't be recognised. If a foreign court orders a council member to act against the rules, that person stops acting automatically.
Your creditors. A creditor must prove that, when you made the transfer, you were bankrupt or insolvent, or meant to defraud creditors. A court can then undo the transfer, but only up to the amount of the claim. Any challenge must start within three years.
Beneficiaries get protection as well. Subject to the charter, money waiting to be paid to a beneficiary can't be taken by that beneficiary's creditors.
Now the caveat. The inheritance protection is written against rules from outside the UAE, and the DMCC rules expressly leave UAE law outside it. On our reading, the foundation isn't designed to override UAE inheritance rules, though no court has tested this yet. If UAE inheritance law is your main concern, take specific advice first. A DIFC will is often part of that conversation.
Who sees what?
The DMCC keeps two layers of information. Only one is on the register.
The register holds the foundation's name, its DMCC number, its establishment date, a record of annual fee payments, and each council member's name and address.
A second, confidential layer is filed privately with DMCC at registration. It names the guardian, any named beneficiaries and the real owners behind any company that acts as founder. DMCC can share it with anti-money-laundering authorities, law enforcement and certain regulators. It isn't meant for the public.
The rules don't say whether the register can be searched by the public. Until DMCC clarifies this, assume council names may be visible. Families who want their name off any register often use professional council members. Beneficiaries named in the by-laws still go into DMCC's confidential filing, so where possible, describe them as a class, such as "my descendants", rather than by name.
What does it cost?
DMCC hasn't published a foundation fee. The rules leave it to the registrar, and DMCC's schedule of charges listed no foundation fee when we checked on 23 September 2026. If anyone quotes you a DMCC government fee today, ask where it comes from.
The rules do create ongoing costs, whatever the fee turns out to be:
- a DMCC licence, renewed each year;
- a registered office in the DMCC free zone;
- at least two council members, who may charge if they're professionals;
- annual accounts prepared to international accounting standards (IFRS).
On top of that come professional fees, and these are usually the larger part of the bill:
- legal advice and drafting of the charter and by-laws;
- usually a corporate service provider for the registered office and administration;
- bank account opening and accounting;
- any professional council members or guardian.
These fees vary with the provider and the complexity of the structure.
The audit needs a closer look. The rules apply DMCC's company accounting regime to foundations. That means an annual audit by a DMCC-approved auditor within six months of year end, unless DMCC waives it. DMCC has the power to waive, but hasn't said whether it will.
The DIFC and ADGM do publish their fees. A DIFC foundation pays USD 350 in year one and USD 650 in each later year, plus a small AED 20 fee per licence filing. An ADGM foundation pays USD 1,000 in year one and USD 500 after that. These are government fees only. Legal, service provider and administration fees come on top in both centres and usually cost more than the government fees.
Over time the government fees flip: the DIFC starts cheaper, but the ADGM becomes the cheaper option from year six.
The ADGM figures include its USD 300 annual data-protection fee. The DIFC figures assume the foundation tells the regulator it does not process personal data, which costs nothing; if it does, the DIFC charges USD 750 to register that.
After five years, DIFC government fees total USD 2,950 against USD 3,000 for the ADGM. After ten years, it's USD 6,200 against USD 5,500. These totals are our own sums from the published schedules and leave out the DIFC's AED 20 filing fee and all professional fees. For how each is set up, see our DIFC foundation guide and ADGM foundation guide.
For a DMCC foundation, the yearly audit may matter more than the government fee. Ask each provider to split government fees from professional fees, and to say whether they've assumed an audit.
DMCC, DIFC or ADGM?
Choose DMCC if your companies already sit there and you can wait for a published price; choose DIFC or ADGM if you need a known government fee and an established track record today.
| DMCC foundation | DIFC foundation | ADGM foundation | |
|---|---|---|---|
| Fees published? | Not yet | Yes | Yes |
| Government fee, year one | Not published | USD 350 | USD 1,000 |
| Government fee, each later year | Not published | USD 650 | USD 500 |
| Total government fees after 10 years | Not published | USD 6,200 | USD 5,500 |
| Professional fees (legal, service provider, accounting) | Extra, plus audit unless waived | Extra | Extra |
The DMCC foundation suits families whose operating or trading companies already sit in DMCC. It lets them keep the whole structure under one registrar, with the DIFC Courts named as supervising court. The trade-off, for now, is uncertainty: no published fee, an open audit question and no guidance yet.
The DIFC and ADGM suit families who want known government fees and a longer track record today. The DIFC is cheaper in the early years, the ADGM over the long run. If you're still deciding between a foundation and a company, our comparison of a family investment company and a foundation sets out how the two divide the work.
Can a DMCC foundation own Dubai property?
Not confirmed yet. A DMCC company can hold freehold property in Dubai's designated areas, according to Baker McKenzie's UAE real estate guide. Whether the Dubai Land Department will accept a DMCC foundation itself as owner hasn't been confirmed.
A common route is for the foundation to own a company that holds the title. That adds an entity and its annual filings. Confirm the route with the Land Department and your adviser before you plan around it.
How is a DMCC foundation taxed?
A DMCC foundation may be taxed as its own entity under UAE corporate tax, but a family foundation can apply to be treated as tax transparent if it meets set conditions. The FTA's guide on family foundations explains both. Law firms have reported an updated edition in June 2026, so check the current version.
The conditions come from the UAE Corporate Tax Law. In short, the foundation must exist for identified or identifiable individuals, or a public benefit body. It must mainly hold and manage savings or investments, not run a business. And its main purpose can't be avoiding tax. A 2024 ministerial decision lets wholly owned subsidiaries apply too. You register for corporate tax first, then apply before the end of the relevant tax period.
One question stays open. The FTA guidance doesn't say whether a DMCC foundation can qualify for the free zone 0% rate. Don't assume it.
Who should move now, and who should wait?
It may make sense to start now if:
- your operating or holding companies already sit in DMCC;
- you want a foundation, holding company and SPVs under one registrar;
- you're comfortable with the DIFC Courts as supervising court alongside a DMCC licence;
- you want the charter drafted and ready when onboarding opens.
It may be worth waiting if you need:
- a published government fee before you commit;
- the foundation itself to hold Dubai property title;
- charitable purposes without a discretionary DMCC approval;
- a structure whose main job is to deal with UAE inheritance rules.
Frequently asked questions
How much does a DMCC foundation cost?
DMCC hasn't published a fee yet. Budget for a licence, a DMCC registered office, annual accounts and an annual audit unless DMCC waives it. For comparison, the DIFC charges USD 350 in year one and USD 650 after that, and the ADGM USD 1,000 and then USD 500. Those are government fees only. Legal drafting, a service provider, accounting and the audit come on top and usually cost considerably more.
When can I register one?
Not yet. Registration opens once DMCC publishes its guidance and online onboarding, which it said on 23 September 2026 would follow in the coming weeks. You can start drafting the charter now.
Does a DMCC foundation protect against UAE or Sharia inheritance rules?
On our reading, no. The protection is written against inheritance rules from outside the UAE, and UAE law is expressly left out. No court has tested this. Take specific advice if UAE inheritance law is your concern.
Is a DMCC foundation better than a DIFC foundation?
Neither is better in the abstract. Both have the DIFC Courts named as supervising court. The DIFC publishes its fees and limits how long reserved powers last. DMCC fits families whose companies already sit there.
Next steps
Start with purpose. Write down what the foundation is for, who should benefit and which assets it will hold. Then put three questions to DMCC in writing: what is the fee, will the audit apply, and can the public search the register? The answers shape both the budget and who you put on the council.
Ancova structures and administers UAE foundations, holding companies and SPVs. If you'd like to test the DMCC route against your own assets, book a structuring consultation.
Sources and legal references
- DMCCA Foundations Regulations 2026, version dated 11 September 2026. Supervising court: Article 1 (definition of "Court"). Minimum starting assets: Article 11.1. Name ending "Foundation FZCO": Article 7.2.
- Charitable purposes barred unless DMCC directs otherwise: Articles 6.4 to 6.7.
- Council of at least two, founder may serve: Articles 14.1 and 14.2. Guardian rules: Articles 16 and 17. Reserved powers: Article 13.1.
- Firewall against foreign inheritance claims and foreign court orders, with the UAE-law carve-out: Articles 23 and 25.2. Creditor challenges and three-year limit: Articles 24 and 25.1. Beneficiary protection: Article 20.6.
- Register and confidential information: Articles 4.2, 5.2 and 5.3.
- Accounts and audit: Article 21.1, applying the accounts and audit chapter of the DMCCA Company Regulations 2024 (Articles 73 to 78). Waiver powers: Article 29.1 of the Foundations Regulations and Article 77.1 of the Company Regulations.
- DIFC reserved powers lapse: DIFC Foundations Law, DIFC Law No. 3 of 2018, Article 26(2)(d) and (e). DIFC fees, including the data protection notification (nil if no personal data is processed, USD 750 for a non-financial entity that processes it): DIFC-CS-GL-03 Rev. 16, 30 July 2026.
- ADGM foundation fees (name reservation 200, incorporation 300, licence 200, data protection 300; renewal: licence 200 plus data protection 300): ADGM Registration Authority Overview of Fees 2025.
- Single family office licence conditions: DMCC Family Office Rules, issued 10 October 2024.
- Tax transparency for family foundations: Federal Decree-Law No. 47 of 2022, Article 17(1); Ministerial Decision No. 261 of 2024, Article 5(2); FTA guide CTGFF1 (May 2025).
All sources retrieved 23 September 2026. Cover photo: Guilhem Vellut, Jumeirah Lakes Towers Park, CC BY 2.0, cropped.
This article is general information, not legal or tax advice. Outcomes depend on your residence, your beneficiaries' residence and the facts of your assets. Take advice from a qualified practitioner before acting.
Written by
Amine Derag
Director of Strategy, Ancova Associates
Amine Derag is Director of Strategy at Ancova Associates, the Dubai advisory firm for company formation, residency, citizenship by investment, and cross-border tax structuring. He advises founders and private clients relocating to the UAE on how a UAE structure interacts with their home-country tax and reporting obligations.
Connect on LinkedInThis article is general information for educational purposes only and is not legal, tax, financial, or immigration advice. Investment thresholds, processing times, and program terms change — speak with a qualified Ancova adviser before acting.
