Single Family Office in Dubai
An SFO can be formed as a Free Zone Establishment (FZE), Free Zone Company (FZCO), or offshore entity set up by the family. It operates under a professional services licence to manage a single family’s wealth, assets, investments, succession, governance, financial and legal affairs. The office may also oversee the family’s businesses, entities, trusts or foundations. All ownership must rest with the same family. Lineal descendants alone must hold 100 % of the SFO’s share capital.
For those families who want to manage their own affairs with confidentiality and control, a Single Family Office (SFO) would be an ideal organizational structure. A SFO typically manages a single family’s own financial, real estate, insurance, trusts & holding structures, philanthropy, taxes, legal, education, lifestyle, concierge and everything else the family would want to be done in an efficient manner.
More than 70% of regional companies are family owned, yet just 5% make it to the fourth generation, often because they lack comprehensive planning. As families and enterprises expand, they need tailored, expert guidance to safeguard and grow their assets. A Single Family Office (typically set up as an LLC) serves purely as a service provider under contract, not as an asset holder. Dubai offers a strong base for an SFO—thanks to its tax advantages, infrastructure, location and clear regulations—with licences available in both DIFC and the new DMCC category.
Setting up a Single Family Office in the UAE
Dubai International Financial Centre (DIFC)
- A dedicated financial hub with its own regulator and legal framework.
- You can obtain an SFO commercial licence without extra DFSA approvals.
- Offers services like wealth and asset management, concierge support, plus legal, accounting or advisory work for one family.
- Requires at least $50 million in net assets, which may sit in the office itself or in trusts, foundations or holding companies.
Dubai World Trade Centre (DWTC)
- A business-friendly free zone located next to the DIFC.
- Minimum of AED 500,000 in liquid assets must be proven.
- Permits the same single-family services—wealth, asset, concierge, legal, accounting or consulting.
- Allows multi-family offices, 100% foreign ownership and free-zone person tax status.
Dubai Multi Commodities Centre (DMCC)
- A top free zone for commodities and enterprise.
- Provides identical single-family offerings: wealth, asset and lifestyle services, plus legal or consulting support.
- Net assets of at least $1 million must be held within the office, related trusts, foundations or company vehicles.
- Grants 100% foreign ownership and qualifying free-zone tax benefits.
Key Requirements in Setting Up a Single Family Office in Dubai
Jurisdiction & Entity
- Decide on a free-zone base (DIFC, DMCC, DWTC) or an offshore vehicle.
- Form as an FZE, FZCO or equivalent under that zone’s rules.
Professional Services Licence
- Obtain a licence that covers trust, wealth, asset, investment, governance and legal advisory for one family.
- No extra DFSA approval is needed in DIFC; other zones have their own simple licensing process.
Ownership Structure
- 100% of shares must be held by the same family.
- Only lineal descendants may own equity in the office.
Minimum Asset Threshold
- DIFC: US $50 million in net assets (held in the office or approved trusts/foundations).
- DMCC: US $1 million in net assets.
- DWTC: AED 500,000 in liquid assets.
Governance Framework
- Draft a family charter or set of operating guidelines.
- Establish clear decision-making lines, reporting cycles and risk oversight.
Local Compliance & Approvals
- Complete “fit and proper” checks for key personnel.
- Register for VAT (if required) and implement AML/KYC procedures.
Physical Presence & Banking
- Secure a free-zone office and local bank account.
- Engage registered auditors and corporate secretaries as mandated.
Core Team & Advisors
- Appoint experienced executives (CEO, CFO, compliance officer).
- Retain legal, tax and fiduciary specialists—whether in-house or via trusted firms.
Technology & Reporting
- Implement secure platforms for accounting, performance tracking and document storage.
- Ensure real-time visibility over all family assets and liabilities.
Key Features and Benefits of a Single Family Office
Key features of an SFO are as below:
- The SFO manages varied types of assets and investments which could be both business and personal.
- The founder of the SFO usually lays down the guidelines or draws a family charter on the management of the family’s affairs with the use of legal and fiduciary professionals.
- All decisions are taken with a long-term focus for multiple generations of the family.
- Having an SFO brings about centralization of decision making for the family while also ensuring the continuity of business and transfer of wealth to future generations.
Some major advantages of an SFO could be listed as follows:
- Coordinated and integrated management of all interests related to the family
- Control, privacy and confidentiality
- Total understanding and focused efforts to meet the needs and requirements of the family keeping in mind the family values and vision for the future generation
- Tailor made services as per the needs of the family
- Possibility of having third party service providers on board
- Management of risk and compliance
The Role of Technology in Family Offices
- As family offices take on more tasks, technology has stepped in to make operations less manual.
- The panel pointed to AI solutions and digital platforms for data handling and reporting tasks.
- By automating routine chores, these tools free teams to focus on higher-value activities.
- Real-time systems offer up-to-date overviews of finances and workflows.
- Technology helps keep processes running smoothly and cuts the risk of errors.
Intuit’s Private Client & Family Advisory services include assistance in setting up, administering, providing professional directors along with compliance, bookkeeping, accounting and audit of an SFO in Dubai.
The author is a professional trust estate practitioner with several years of experience in advising clients on estate planning and structuring offshore trusts, foundations and holding companies.
For more details reach us at [email protected]
FAQs:
1. Should I set up a single-family office or a multi-family office?
2. Can a family office offer asset management services?
3. Is the DIFC family office framework suitable for families based internationally?
4. Is the DIFC family office structure suitable for international families?
5. Which other UAE jurisdictions support family offices besides the DIFC?
6. What’s the minimum asset level required?
7. How do I choose between free zones?
8. Can non-family members hold shares?
9. What licence covers my needs?
10. How complex is the approval process?
11. Do I need local office space?
12. What governance documents are essential?
IMC Group