Single Family Office – Dubai World Trade Center

Overview

The term ‘single & multi-family office’ is tricky! A single-family office abbreviated as SFO is a stand-alone business entity to manages the wealth of a single wealthy family. Example – Walton Enterprises a private family office that manages the wealth, investments, and philanthropic activities of the Walton family.  Multi-family office MFO serves multiple wealthy families, providing similar expert financial management but at a lower cost. This makes it a great option for high-net-worth families who want professional wealth management without the high expenses of a single-family office. Example Hottinger Group – A private firm that manages the financial needs of families from 15 countries. In this article, we cover all about setting up a single-family office.

Establishing Single Family Office

The Dubai World Trade Centre Authority (“DWTCA”) has issued Circular No. 12, outlining the Rules and Regulations for Single Family Office Activities within the Dubai World Trade Centre Free Zone (“SFO Regulations”). These regulations provide high-net-worth families with a structured solution to establish a Single Family Office, enabling them to secure, consolidate, and manage their wealth portfolios from Dubai. A Dubai World Trade Centre Single Family Office (“DWTC SFO”) can be set up as a free zone establishment or free zone company within the Dubai World Trade Centre Free Zone (“DWTC”). It may obtain a license to engage in the following activities:

• Management of professional services related to wealth, assets, investments, succession planning, governance, and financial or legal affairs of a Single Family.
• Provision of administrative (compliance, secretarial, etc.) and concierge services exclusively for the same Family.

For the purposes of a Single Family Office, a ‘Family’ is defined as an individual or a group of individuals who are lineal descendants of a common ancestor. Each descendant must be able to legally prove their lineage, irrespective of nationality. This definition includes family members, family businesses, family entities, family trusts, and foundations.

Ownership of a DWTC SFO

A DWTC Single Family Office (SFO) can be established within the Dubai World Trade Centre Free Zone (DWTC) by members of a Single Family to own and manage the family’s affairs and assets. All shareholders of the DWTC SFO must be members of the Family, with the following requirements:

• 100% shareholding must be held by Lineal Descendants of the Family.
• 100% Ultimate Beneficial Ownership (UBO) must remain within the Family.

Lineal Descendants include:

• Direct bloodline descendants
• Legal spouses
• Legal children

To maintain family exclusivity, the DWTC SFO cannot sell shares to third-party non-family members. However, share transfers within the Family are permitted. A key requirement for establishing a DWTC SFO is proof of at least AED 500,000 in liquid assets, held by the Single Family for a minimum period of 12 months before applying.

Management of a DWTC SFO

To provide the Family with flexibility in managing the DWTC SFO while maintaining professional independence, a minimum controlling interest of 51% must be held by the Family. The following conditions apply:

• The DWTC SFO board must be majority-controlled by Family members.
• No non-family board member can hold a greater controlling interest than the largest individual Family shareholder.
• The General Manager or CEO—as the highest decision-making executive—must be a Family member.

How Arnifi Can Help?

Arnifi simplifies business setup, whether for holding companies, subsidiaries or in this case family offices by taking care of licensing, documentation, and regulatory compliance. Our expert team takes care of smooth visa processing, effective accounting and tax services, and continuous post-establishment support. Whether you opt for a free zone, mainland, or offshore setup, we assist you in navigating legal and tax obligations with ease. Concentrate on business expansion while Arnifi takes care of the rest.

Also Read: Single & Multiple Office setup