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News Published 23 October 2026 3 min read

DMCC sets up Foundations Regulations: what a DMCC foundation is

DMCC has adopted Foundations Regulations, letting families and founders hold assets in a DMCC foundation. Who it suits, what is known and how it compares.

DMCC, the Dubai free zone, announced on 23 September 2026 that it has formally established Foundations Regulations. The rules let individuals, families and companies set up a foundation in the DMCC Free Zone to hold and pass on assets, following an announcement of the plan in June.

As of 23 October, DMCC has not yet opened onboarding. It says guidance and a digital application process will follow "in the coming weeks", and people can register interest on its Foundations page.

What a foundation is

A foundation is a legal entity that holds assets for a purpose or for beneficiaries. It has no shareholders. It sits somewhere between a company and a trust.

Under the DMCC regulations:

  • A founder signs the charter and puts in the initial assets. The minimum is USD 100.
  • A council of at least two people or companies runs it. The founder can sit on the council.
  • A guardian supervises the council. It is optional while a founder is alive, and required once no founder survives.
  • The charter sets out the name, objects, assets and how long it lasts. Optional by-laws can cover the detail.
  • The founder can reserve powers, for example over investments, appointments or beneficiaries.
  • The foundation needs a registered office in the DMCC Free Zone and a DMCC licence. Its name must end in "Foundation FZCO".

The text says the rules take effect on a date the DMCC Authority will announce. Names of beneficiaries and council members are treated as confidential information held by the registrar.

Who it suits

DMCC says the regime is aimed at high-net-worth individuals, family offices, entrepreneurs and international private wealth clients. In practice, a foundation is usually considered for:

  • holding shares in one or more operating companies, so ownership stays stable when a founder dies or steps back;
  • succession planning across a family;
  • holding investments or property under agreed rules.

It is not a way to trade. If you want to sell goods or services, you still need an operating company. A foundation may own that company.

How it compares with DIFC and ADGM

The UAE already has two well-used foundation regimes in its financial centres. At a high level:

DMCC DIFC ADGM
Legal system DMCC free zone rules, UAE civil law Own common-law courts Own common-law courts
Minimum council 2 2 Not stated in ADGM overview
Guardian Required once no founder survives Required for charitable or specified purposes Required after founder's death
Minimum initial assets USD 100 No set minimum USD 100
Track record New, not yet open In force since 2018 In force since 2017

Sources: the DIFC Foundations Law and ADGM's foundations regime overview.

The main difference is the legal setting. DIFC and ADGM have their own courts that apply common law, which many advisers and foreign banks know well. DMCC's main pitch is convenience for groups already licensed in DMCC. DMCC says it benchmarked its regime against leading foundation laws, but it has no track record yet.

What it means for a free zone company

Nothing changes for existing DMCC companies unless you choose to use the new structure. If you are a DMCC member with a holding company or SPV, a foundation could sit above those entities in the future. DMCC introduced SPV and holding company licences in 2025, as Mondaq notes.

DMCC has not published foundation fees. The tax treatment of a foundation depends on its structure and activities, so take advice before you assume any result.

What to do next

  1. If you are interested, register on DMCC's Foundations page and wait for the guidance and fee schedule.
  2. Ask your lawyer to compare a DMCC foundation with DIFC and ADGM foundations for your own family and assets, including how banks treat each.
  3. Check the corporate tax position with a registered tax agent before you move any assets.
  4. Do not move shares or property until the regulations are in force and onboarding is open.

uaefreezone.com is an independent guide. We are not affiliated with DMCC, DIFC or ADGM. This is general information, not legal or tax advice.

General information only, not legal, tax or immigration advice. Free zone fees and rules change; confirm the current figures with the free zone authority before you commit. Spotted something out of date? Tell us.

Sources