What is a Private Foundation?
A Foundation is a legal entity established for the purpose of:
- preserving and accumulating the Founder’s capital
- using and distributing the Founder’s capital in accordance with the rules established by the Founder
Why Do You Need a Private Foundation?
- Asset Protection
- Assets are held by the Foundation, not in the Founder’s personal accounts
- Claims by third parties are only possible in exceptional circumstances
- Clear ownership structure and continuous control over asset preservation
- Ownership confidentiality (beneficiary information is private; data on other related parties is limited)
- Controlled Inheritance
- Freedom to choose heirs
- No asset freeze
- Outside the scope of Russian legal jurisdiction
- Gradual asset transfers possible, contingent on heirs meeting certain conditions
- Tax Efficiency
- No income tax on the Foundation’s earnings until distributions are made to beneficiaries (under specific Foundation structures)
- More favorable tax treatment compared to personal asset ownership
- Business Continuity
- Pre-established corporate governance
- The death of the Founder or a beneficiary does not affect management
- Flexible involvement of the Founder in operations
- Eliminating Personal Risks
- No restrictions or penalties under Russian currency control regulations
- No limitations on investments in the EU or the US
Controlled Inheritance of Assets Through a Private Foundation in the UAE
- Assets held in the Foundation are not part of the Founder’s estate
- No asset freeze during the inheritance process; no need for complex administrative procedures across different jurisdictions
- No forced heirship or spousal share rules apply when transferring assets to heirs
- No restrictions on asset use when inherited by minor children
- Inheritance tax can be avoided
- Prevents the appearance of “unexpected” heirs and eliminates legal claims to portions of the estate
- The procedure and timing of asset distribution are set by the Founder in the Foundation’s documents
- Gradual transfer of assets to heirs is possible
- Transfer can be conditional (e.g., upon receiving education, gaining proven investment experience, etc.)
- Protection of heirs through the Foundation’s coverage of essential needs (e.g., health insurance, housing, legal services, etc.)
Eliminating Investment Restrictions Through a Private Foundation
- A Foundation in the UAE removes the restrictions imposed by Russian currency laws on investments abroad:
- The Foundation is a non-resident for currency control purposes in Russia (there are no restrictions on the Foundation’s transactions)
- Investing through the Foundation eliminates the risk of penalties under Russian currency law (up to 40% of the transaction amount)
- There are no restrictions on transferring assets to the Foundation
- There are no restrictions on receiving distributions from the Foundation to accounts in Russia, the UAE, or other countries participating in the automatic financial information exchange with Russia
- The Foundation in the UAE simplifies access to the European financial market (lower requirements for residency and living in the EU)
The UAE Foundation as an Advanced CFC Model for Working in International Financial Markets
Asset Protection Through a Private Foundation in DIFC, UAE
Once transferred to the Foundation, assets are held by a separate legal entity (the Foundation), rather than in the Founder’s personal accounts. Asset recovery is only possible through a court process.
According to the DIFC Foundations Law:
According to the DIFC Foundations Law:
- Disputes concerning the Foundation are governed exclusively by DIFC law
- Asset transfers to the Foundation cannot be challenged under foreign laws (e.g., in cases of the Founder’s bankruptcy or claims for secondary liability)
- A three-year limitation period is established for claims disputing contributions to the Foundation or similar matters
- Legal protection is granted to the Foundation’s officers against coercion or prosecution under foreign legislation
- Ownership Confidentiality
- Information on beneficiaries, distribution rules, Foundation governance, and financial reporting is disclosed only to the registered agent
- For a Foundation that is not a CFC (Controlled Foreign Company), there is no requirement to report in Russia
- Confidentiality of the source of funds can be further enhanced by separating the roles of Founder and Contributor
A Private Foundation in the UAE – A Tool for Continuous Asset Management
- Business assets, including operating companies in Russia and abroad, can be transferred to the Foundation
- Management of operating companies can be flexibly structured at the Foundation level (different levels of involvement and authority for the Founder and successors; predefined scenarios for various situations)
- The death of the Founder does not affect the ownership structure of the assets
- Agreements with business partners (shareholder agreements, etc.) are arranged at the Foundation level and are not tied to the Founder personally
A Private Foundation Protects Against Risks Such As:
- Your personal accounts are frozen due to creditor claims related to secondary liability.
- The primary asset holder in your family passes away unexpectedly, and their assets are frozen during the inheritance process.
- Personal circumstances (illness, criminal charges) prevent you from continuing business, and partners stop honoring informal profit-sharing agreements.
- Your spouse suddenly files for divorce, and during asset division, you lose control over the business you've built for years.
- Your underage heirs inherit significant capital, lose motivation to learn and grow, or make poor investment decisions and lose assets.
- Your heirs are unaware of substantial foreign investments you’ve made, and they can’t claim those assets during inheritance proceedings.
- A collection important to you holds no value to other family members and is neither preserved nor displayed.
- Your heirs can’t access quality education because inheritance triggered prolonged legal disputes.
- The country where your investment bank accounts are located is removed by the Russian Ministry of Finance from the list of jurisdictions participating in automatic information exchange, making further income from these accounts an illegal currency operation.
Foundation Council
Assets
Protector
Founder
Contributor
State
ALPINE Private, Registered Agent
Beneficiaries
How the Private Foundation works:
- Учредитель
- Бенефициары
- Совет Фонда
- Опекун (опционально)
- Вкладчик (опционально)
- Регистрационный агент
- Государство (DFSA, DIFCA, суды)
Control
Management
Management and Accumulation
Control
Purpose
Oversight, Appointment of Council Members
Control
Payments
Transfer of assets
Transfer of assets
Formation of Statutory Documents.
(optional)
(optional)
(DFSA, DIFCA, courts)
Сharter
By-laws
Public document. Provided to the register of companies.
Non-public document. Held by ALPINE PRIVATE – Registered Agent.
Why a Private Foundation in the UAE?
- A friendly country
- Banking system ranks among the world’s top 20 financial centers
- Convenient logistics
- Economic stability
- Advanced Foundation legislation complemented by English law
- Banks and service providers are open to working with Russian citizens
- Easy and effective interaction with government authorities
Why Set Up a Foundation with ALPINE PRIVATE
-
ALPINE PRIVATE is a registered agent in the DIFC (Dubai International Financial Centre), licensed by the Dubai Financial Services Authority (DFSA) - In-depth expertise in Russian tax, currency, family, and inheritance law. The setup, asset transfer, and ongoing operations of the Foundation are carried out with full consideration of the regulations and nuances relevant to the Founder and/or Beneficiaries who are Russian tax and currency residents
- The owners of ALPINE PRIVATE and trustees on the Foundation’s board are independent Russian legal and investment professionals, recognized experts in their fields
- A reasonable and practical approach to KYC* and AML** procedures*KYC – “Know Your Customer”: a process where financial institutions verify clients' identities
**AML – Anti-Money Laundering: verification of the source of funds (including cryptocurrency) and the absence of connections to illicit activities
Key Experts
Private Foundation Setup Plan
Structure Agreement with Founder
KYC procedure for the Founder
KYC procedure for the Founder
10–15 business days
Drafting the Foundation Charter and Internal Regulations
Preparation of all legal documents
Preparation of all legal documents
up to 15 business days
Foundation Registration in DIFC
5 business days
Opening a Bank Account for the Foundation
Approximately 1–2 months
Transferring Assets to the Foundation
Depends on the type of assets
Sergey Gerasimov
Sergey has over 20 years of professional experience, during which he has successfully provided tax and legal consulting in the private capital sector and currently (for the last 3 years) leads a team of 20+ experts at ALPINE Tax.
Sergey's biography includes leading ALTHAUS Private Tax (private clients practice within ALTHAUS) as a Managing Partner for 5 years. Before that, he was a Partner in the ALTHAUS tax practice for 8 years; before that, he spent 5 years providing international tax consulting at BDO and other law firms.
Sergey's experience has been recognized by reputable international and Russian ratings: Chambers & Partners, International Tax Review (World Tax), The Legal 500, Best Lawyers, Kommersant and Pravo.ru.
Sergey's biography includes leading ALTHAUS Private Tax (private clients practice within ALTHAUS) as a Managing Partner for 5 years. Before that, he was a Partner in the ALTHAUS tax practice for 8 years; before that, he spent 5 years providing international tax consulting at BDO and other law firms.
Sergey's experience has been recognized by reputable international and Russian ratings: Chambers & Partners, International Tax Review (World Tax), The Legal 500, Best Lawyers, Kommersant and Pravo.ru.
Natalia Pushkina
Natalia has a Master's degree in Finance and Investments with over 15 years of combined professional international experience in finance, accounting, insurance and banking
- Specializes in providing customized investment solutions tailored to the individual needs of each client, manages investments and financial affairs for high net worth individuals in the CIS and African markets
- Many years of experience in investment projects and products
- Wealth management in UAE banks (corporate structure, wealth preservation and planning, citizenship programs, banking relationships in different emirates)
- Experience in capital and asset management in the markets of the Persian Gulf, Africa and the CIS
Maxim Klyuchnikov
Maxim's total professional experience is over 20 years. The following projects were successfully completed under his leadership:
- Development of the holding structure of Transmashholding
- Development of the holding structure and operational structure (in terms of component supplies) of Sukhoi Civil Aircraft
- Development of the holding structure of Sovcomflot
- International tax structuring projects for Lukoil
- Taxation issues for Transneft
- Qualification for tax purposes of emission reduction units for EuroChem
- Development of accounting and tax accounting methodology for the wholesale electricity and capacity market in the Russian Federation
- Structuring - Aviasales
- More than 400 projects for the development of personal holding mechanisms
Contacts
Phone:
+7 925 436 18 97 (WhatsApp Russian speaker)
+971 54 279 9051 (WhatsApp English speaker)
Email:
pc@aigroup.ae
Адрес:
Unit 215A Level 2, Park Towers,
DIFC, Dubai, UAE
alpinetax.ru
aigroup.ae
+7 925 436 18 97 (WhatsApp Russian speaker)
+971 54 279 9051 (WhatsApp English speaker)
Email:
pc@aigroup.ae
Адрес:
Unit 215A Level 2, Park Towers,
DIFC, Dubai, UAE
alpinetax.ru
aigroup.ae
© ALPINE TAX CONSULTANCY & ACCOUNTING L.L.C.
All rights reserved. 2025
Personal data processing policy
All rights reserved. 2025
Personal data processing policy
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