Registration of an Arab Trust in UAE

SORP Group offers the expertise required to prepare the legal foundation for forming a Trust in the UAE. Our experts will draught the prepared agreements and register the parties' relationships with the UAE authorities in accordance with the law. We help our clients protect their assets and business and conduct transactions without tax consequences using a completely confidential tool - the Arab Trust.

A trust is a proven tool that has been recognized for decades, which ensures the anonymity and security of the owner's property rights. Traditional European jurisdictions with trust laws, such as the United Kingdom, no longer guarantee the confidentiality of trust owners due to stricter disclosure requirements. The Arab Trust in the UAE is quickly becoming a highly reliable and guaranteed tool for maintaining anonymity. Besides our business setup services in Dubai, we also offer complete legal help to create an Arab or family trust for your asset protection.

How does an Arab Trust Work?

Nominee ownership is enshrined in the corporate law that applies to most types of businesses in the UAE. Many of these businesses are owned by foreigners. The state provides legal protection for the trust owners' interests (investors), which is the basis of trust structures in the Emirates.

What is an Arab Trust, and how is the structure created?

An Arab Trust is a traditional trust relationship that operates within the framework of UAE legislation based on Sharia principles. Legally, an Arab Trust is formed by signing a collection of contracts and agreements based on the United Arab Emirates commercial law and certified in the court of Dubai.

By whom is an Arab Trust established?

An Arab Trust is created with the participation of the founder, the trust, and the beneficiary. The founder is the nominal shareholder; the beneficiary is the investor, the one who receives the benefits from the trust. The Managing Trustee is a technical (nominee) director who follows the final beneficiary's instructions.

What guarantees the anonymity of the beneficiaries?

The UAE supports all international disclosure standards. The disclosure standards apply to non-residents of the country. Participants of the created trusts are residents (investors can obtain resident status). Trust structures are reliably protected from automatic information exchange (CRS). The courts of the Emirates, where trust relations are formed, are not entities involved in the automatic exchange of information.

Are there any tax consequences for the activities of an Arab Trust?

The national policy of the UAE is focused on creating favorable conditions and equal rights for foreign investors, thus forming the ideal environment for a successful business. Taxation in the Emirates is 0% for financial and investment transactions, there is no corporate tax, and international activities are also tax-free. There is only 5% VAT on a number of categories in the domestic market.

Advantages of Creating an Arab Trust

An Arab trust in the United Arab Emirates is a unique tool for solving various business problems, as well as for its beneficiaries. According to the existing legal framework of the United Arab Emirates, there are the following purposes for using a trust in the UAE.

Data Privacy

Complete anonymity of asset owners, signatories to the arrangement, and management decision-makers.

Freedom of Interdependent Operations

The ability to carry out the tax-free movement of funds and assets due to the anonymity of the owners of the trust

Protection of Investors' Assets

Trust confidentiality allows you to protect your business and assets, thus enabling effective management.

Concealment of Real Estate Ownership

Re-registration of real estate to a trust provides the rights of ownership without the need for declaration.

Organization of Collective Investment

Accumulation of funds in a fund managed by a trust for the purpose of their guaranteed investment

Guaranteed and Tax-free Inheritance

The possibility of providing for the inheritance of property and assets to recipients chosen by the trust owners

SORP Solutions for Establishing an Arab Trust in the UAE

Legal Registration and Support

We will prepare the legal basis for establishing a Trust in the Emirates. We will form a chain of contracts for building the structure.

Registration of Trust Structures

We will draw up the prepared agreements and register the relations of the parties with the UAE authorities as per the law.

Dubai Registration Address

Office space in our own business center for rent, used for registration procedures and passing KYC verification.

Opening Bank Accounts

We cooperate with leading banks in the UAE, as well as understand their compliance procedures to achieve fast passage of all checks.

Registration of Tax Residency

Providing anonymity of beneficiaries and signatories of the agreements, as well as protection from tax information exchange (CRS).

Economic Substance Confirmation

Proof that operational activities are carried out at the company's registered address & that a control and management center exist.

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Types of Arab Trusts

Fixed or Co-ownership Trust

The trust's beneficiary is not recorded as the ultimate owner of any of the trust's structures but can be included in the constituent agreements as a blocking party to protect against third-party claims. The final beneficiary determines the distribution of assets based on the decisions made. The right of ownership is registered in court by the agreement of the parties and by the pledge of shares. The ultimate owner and beneficiary must hold UAE tax resident status.

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Discretionary or Trust with 100% Nominal Ownership

The trust's beneficiary is not recorded as the ultimate owner of any of the trust's structures. The structure makes its positions and agreed distributions more secure from third-party claims. The distribution of assets and the schemes for extracting benefits from the activities of the trust are determined by the final beneficiary based on his decisions, which are determined by the parties' agreement. Ownership rights are made by the agreement of the parties and by a pledge of shares.

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Integrated Solutions for Doing Business in the UAE

Business Analysis

We will research the market and competitive environment, as well as specifics of the legislation relevant to the planned business activities.

Business Consulting

We will ensure the passage of all the stages of starting a business. We will build relationships with government agencies that support business activities.

Nominee Services

We will provide limited director and shareholder rights to exclude transfer pricing and conceal the actual beneficiaries of the company.

International Tax Planning

Individual solutions to improve the efficiency of tax optimization schemes for international business based on the UAE legislation and successful cases.

Center of Vital Interests

Providing documented proof as required by the authorities of things like housing, employment, and sources of stable income in the United Arab Emirates.

Financial Expertise and Support

Analysis, strategy development, and documentary support of financial transactions, support with the assessment of specialists from the UAE and worldwide.

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