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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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 presented by the Arab Trust for solving business problems

Data
privacy

Complete anonymity of asset owners,
signatories to the arrangement, 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


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 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.


SORP will become your reliable long-term
partner in the UAE

Comprehensive 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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