Foundations

Foundations

A private foundation is a legal entity set up by an individual, a family or a group of individuals, for the benefit of the founders. A foundation can also have charitable or philanthropic purposes. It has long been associated with civil law jurisdictions, most notably Liechtenstein (but also Austria, Switzerland, Panama, St Kitts, Seychelles, Nevis, Anguilla, Malta, Curaçao and the Netherlands Antilles) and less frequently in common law countries such as the Bahamas (introduced in 2004). Recent years have also seen common law jurisdictions such as Jersey, the Isle of Man, Guernsey and Mauritius introduce legislation allowing the establishment of foundations.

Furthermore, in 2018 the Dubai International Financial Centre (DIFC) introduced the Foundations Law DIFC Law No. 3 of 2018 (as amended) (Foundations Law). The Foundations Law was the subject of an important decision in 2020, by the Court of Appeal of the DIFC on the interpretation of the statutory regimes in the DIFC governing trusts and foundations. See News Analysis: DIFC Court of Appeal gives pioneering advisory judgment on trusts and foundations regimes.

General information

Foundations have their origins in civil law countries. An early forerunner was the Roman law concept

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