Arab Trust Formation
in the UAE

Protect your assets and business by conducting transactions without tax consequences, using a
completely confidential tool-the Arab Trust

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SORP.AE

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 that have 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.

How does an Arab Trust work?

Nominee ownership is enshrined in the corporate law that applies to most types of businesses in the UAE. In fact, many of these businesses are owned by foreigners. The state provides legal protection of 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?

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An Arab Trust is a trust relationship in the classical sense, but operating within the framework of UAE legislation based on the principles of Sharia. Legally, an Arab Trust is created by signing a pool of contracts and agreements that are based on the commercial law of the Arab Emirates and are certified in the court of the city of Dubai.

By whom is an Arab Trust established?

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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 and who benefits from the trust. The Managing Trustee is a technical (nominee) director who follows all the instructions of the final beneficiary.

What guarantees the anonymity of the beneficiaries?

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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 from the activities of an Arab Trust?

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The national policy of the UAE is very much 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 corporation tax and international activities are also tax-free. There is only 5% VAT on a number of categories in the domestic market.

Opportunities of the Arab Trust
for solving business problems

Data
privacy

Complete anonymity of asset owners,
signatories to the calculation, and
management decision makers

Freedom of interdependent
operations

The ability to carry out 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.

Оrganization 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 the establishment of 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 understanding 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 exists

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Types of Arab Trust that are suitable for
your goals and objectives

Fixed or co-ownership
trust
The beneficiary of the trust 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 distribution of assets is determined by the final beneficiary based on the decisions made. The right of ownership is registered in court by agreement of the parties and by 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 beneficiary of the trust 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 on the basis of decisions made by him, which are determined by agreement of the parties. Ownership rights are made by agreement of the parties and by pledge of shares.
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Integrated solutions for doing your busines in the UAE

Business analysis
We will research the market and competitive environment, as well as on 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 a 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 around the world.
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SORP will become your reliable long-term
partner in the UAE

Complex of all services

SORP offers comprehensive support for acquired companies and their shareholders: from licensing, maintaining Bank accounts to obtaining the status of a tax resident of the country

Individual approach

Your requirements are unique. That is why we treat every business individually to tailor the right services to achieve your priorities.

15 years of successful work

We have helped thousands of clients acquire, build and develop businesses in the UAE

Banking support

Assistance in choosing a bank that is suitable for your purposes, support with bank accounts opening and passing KYC procedures (know your customer).

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