In the UAE, a trusts is a legal agreement in which a settlor distributes property to a trustee, who then takes care of it for a group of people. Ultra-high net worth individuals typically use trusts to keep their things safe, plan for the future, and give to good causes. Law No. 4 of 2018 for the DIFC Trust. Trusts don’t have their own legal identity like foundations do. They operate as a trustee and protect assets against personal obligations or claims from creditors.
Trusts can help ultra-high net worth individuals secure their family’s wealth or pass it to future generations. The UAE has agreements to avoid double taxation, no personal income tax, and lower corporation tax. A trust can holds many things, such as land, stocks, and investments. They can be used for both private and public reasons. They have to follow Sharia law or the local regulations.
Choosing the right place to set up a Trust is key to asset protection, compliance, and long-term planning.
Professionals such as BYB ensure that the configuration is appropriate for your requirements and proceeds smoothly.
Step 4
When establishing a trust in the UAE, it is necessary to have specific documents prepared in order to adhere to the regulations. These are essential documents:
Valid passports of the settlor, trustee, and named beneficiaries (if requested).
A certificate of residence or utility receipt that is less than three months old for each individual.
If you are a corporate settlor or trustee, you are required to provide a list of directors or partners.
A lengthy document that provides a comprehensive explanation of the trust’s purpose, beneficiaries, assets, and distribution.
The contract must specify the trustee’s responsibilities and their willingness to assume the position.
The contract must specify the trustee’s responsibilities and their willingness to assume the position.
A non-binding document guiding the trustee on asset distribution preferences.
Forms that are unique to a particular jurisdiction, including anti-money laundering and KYC forms.
Discretionary Trust – Trustee decides how and when to distribute assets to beneficiaries.
Fixed Trust – Beneficiaries and their shares are pre-defined in the trust deed.
Charitable Trust – Formed for recognized charitable causes (e.g., education, health, relief).
Revocable Trust – Settlor retains the right to amend or cancel the trust at any time.
Irrevocable Trust – Cannot be changed or revoked after formation; offers stronger asset protection.
Purpose Trust – Created for a specific goal (non-charitable) without named beneficiaries.
Trust: Not a legal entity; managed by a trustee.
Foundation: Legal entity; holds assets in its own name with stronger control and structure.
Yes. Available in DIFC and ADGM. Requires a trust deed, settlor, trustee, and compliance with the relevant free zone trust laws.
No fixed minimum, but USD 50,000–100,000 is a common initial funding for meaningful asset protection.
No. Trusts don’t need office space, just a UAE-based trustee with a registered address
Generally, no. Only the settlor can transfer assets unless structured otherwise.
Immediately after the trust deed is executed and the trust is active.
A UAE-registered Trust can own global assets, including real estate, shares, or bank accounts.
Yes, all companies registered in JAFZA must submit audited financial statements annually, as mandated by JAFZA rules and the company’s Articles of Association. Submissions are due within 90 days of the financial year-end. Non-compliance may incur a fine of AED 5,000 per month and risk non-renewal of the trade license.
BYB (Build Your Business) is a specialized firm focused on building the foundation for businesses to operate globally. We provide clear guidance and practical support to individuals and companies on how to properly establish their business, follow all rules, and design its structure to begin work in different countries. Our deep knowledge includes how to stay compliant in various nations, selecting the best legal setup, and making smart choices about local business environments. We help get registrations, explain tax requirements, and put in place the basic systems for running an office. BYB is an essential partner for those starting international businesses, making sure they have a solid and rule-abiding base from the very beginning.
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