The Match: Companies vs Foundation

Consolidating high-value assets under one (or several) company/ies has a lot of advantages – e.g. asset/asset classes segregation, limited liability with respect to those assets, ease of (re)financing, facilitated transfer of ownership interests.

However, corporate consolidation fails to address key concerns when it comes to legacy planning and asset protection. The individual shareholder/s is/are still exposed to 3rd parties’ attacks and shares held in an individual capacity remain subject to probate procedure in case of demise. This is where a Foundation adds value to a corporate structure.

Compatible with all UAE and most international asset classes (real estate, shares, portfolios), Foundations enable entrepreneurs and their families to consolidate and keep control over income-generating assets and investments, while protecting them from potential threats. They are equally effective for Muslims and non-Muslims.

Foundations can be used in combination with corporate structures, e.g. holding shares of holding or operational companies, thereby guaranteeing business continuity and smooth intergenerational planning.

The below chart highlights the key features and advantages of foundations over companies held by individual shareholder/s.

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