Opening a Family Office in Dubai: A Comprehensive Guide

Introduction

• UAE is a prime location for managing family wealth.
• Dubai is becoming a top destination for family offices due to:
  • Thriving business environment
  • Strategic location
  • Favorable tax regime
  • Robust economy
  • World-class infrastructure

Overview of Family Offices

• Definition: Private wealth management entities for affluent families.
• Services Provided:
  • Investment management
  • Financial planning
  • Estate planning
  • Administration
• Family offices focus on personalized solutions and centralized management for high-net-worth individuals (HNWIs).

Types of Family Offices

1. Single Family Office (SFO):
   • Serves one wealthy family with bespoke services.
2. Multi-Family Office (MFO):
   • Serves multiple families, allowing for cost-sharing.

Free Zones and Registration

• SFOs can be established without DNFBP registration.
• MFOs must register with the DNFBP and the DFSA.

Role and Functions of Family Offices

• Manage and preserve wealth with services including:
  • Financial advisory
  • Investment management
  • Tax optimization
  • Philanthropy
  • Family governance

Why Choose Dubai?

Strategic Location

• Dubai is at the crossroads of Europe, Asia, and North Africa, making it a global business hub.

Robust Economy

• Diversified economy that is resilient, focusing on finance, trade, tourism, and real estate.
• Proactive government policies and a transparent legal framework enhance business confidence.

Favorable Tax Regime

• No personal income or capital gains tax in the UAE.
• Double taxation avoidance agreements available for international operations.

Steps for Setting Up a Family Office

1. Partner with Trade License Zone:
   • Get assistance with licensing, approvals, and government relations.
2. Choosing a Family Office Name:
   • Submit three name preferences for verification; avoid offensive language.
3. Select a Business Jurisdiction:
   • Options include Free Zones or Mainland companies, each with its benefits.
4. Choose Your Trade License and Activities:
   • Consult experts for selecting appropriate licenses and activities.
5. Apply for Family Office License:
   • Applications to DIFC, DFSA, and DNFBP needed for MFOs.

Key Benefits of Establishing a Family Office in Dubai

Customised Wealth Management

• Tailored strategies based on specific family goals and risk appetites.

Centralised Wealth Management

• Streamlined operations and better coordination among family members.

Networking and Co-investment Opportunities

• Access to a diverse community of investors and entrepreneurs in Dubai.

Successful Family Offices in Dubai

• Examples include:
  • HB Investments
  • Kaaf Investments
  • El Daba Holdings
  • Al Zarooni Emirates Investments
  • Kasamar Holdings

Conclusion

• Dubai offers a strategic, stable, and tax-friendly environment for family offices.
• Partner with Trade License Zone for streamlined setup and licensing process.