The Dubai International Financial Centre (DIFC) is widely recognized as a premier global hub for wealth management and family business structures. With its independent legal system rooted in English common law, tax-efficient environment, and robust regulatory oversight, DIFC is ideal for establishing a family office. At Spectrum, we simplify the process—guiding high-net-worth families through each step to ensure a seamless foundation for preserving and growing wealth across generations.
Why Choose DIFC for Your Family Office?
• Regulated, stable, and sophisticated: DIFC offers a legal and judicial framework that ensures governance, confidentiality, and long-term continuity of family structures.
• Tailored family business framework: Its recently enacted Family Arrangements Regulations (effective January 2023) offer clarity and simplify compliance for both single- and multi-family offices, replacing earlier models and removing certain registration burdens.
• Dedicated support: The DIFC Family Wealth Centre acts as a centralized advisory hub, offering best-in-class guidance and certification programs for family offices and their advisors.
Step-by-Step Setup Process
1. Choose Your Family Office Model
• Single-Family Office (SFO): Serves one family. Suitable for managing personal wealth, succession planning, and asset protection.
• Multi-Family Office (MFO): Serves multiple families, with broader service offerings but additional compliance and DFSA licensing if providing regulated services.
2. Meet the Net Asset Threshold
Your family must demonstrate at least USD 50 million in net assets, either via market value assessment or book value. A Certified statement from a bank or financial institution is required.
3. Select Legal Structure & Appoint a Corporate Service Provider (CSP)
Common structures include:
• Private Company
• Limited Liability Partnership
• DIFC Foundation
• Prescribed Company (for holding assets)
Spectrum assists in determining the best fit based on your objectives and future succession plans.
A DIFC-licensed CSP will act as your liaison during setup—including documentation, registration, and compliance.
4. Prepare Documentation
Typical documentation includes:
• Family tree (three generations, highlighting common ancestor)
• Family members’ profiles, including UBO and PEP status
• Source of Wealth and Funds documentation
• CSP’s statement confirming due diligence and asset threshold compliance
• Family Charter for governance and succession policies
• Registered DIFC office address (or CSP’s standing address if granted waiver)
5. Submit Application to DIFC Registrar
Once the documents and CSP confirmation are ready, file your application for approval. The Registrar reviews the materials and issues the license once all criteria are met.
6. Compliance & Governance Setup
• Comply with AML/KYC regulations and data protection protocols.
• Institutes robust governance with a Family Charter and oversight mechanisms, often via a Board of family members and professional advisors.
7. Optional: DFSA Licensing for MFO or Regulated Services
If you plan to provide financial services to multiple families or offer investment advisory, trust, or fiduciary services, you will need licensing from the Dubai Financial Services Authority (DFSA).
Spectrum’s FAQs
1. What’s the minimum asset requirement to start a Family Office in DIFC?
You need at least USD 50 million in net assets, certified by a bank or financial institution.
2. Do I need DFSA approval for all Family Offices?
No—Single-Family Offices (SFOs) offering non-restricted (non-financial) services do not require DFSA licensing. However, Multi-Family Offices (MFOs) offering financial or regulated services must seek DFSA authorization.
3. What legal structures are available for a DIFC Family Office?
Options include Private Company, LLP, Foundation, Prescribed Company, or a managing office structure, depending on your control and legacy preferences.
4. Is office space mandatory within DIFC?
Yes—unless waived, you must maintain a registered office within DIFC. Spectrum can help you arrange a flexible office or use our CSP’s address where applicable.
5. How should governance and succession be structured?
Begin with a Family Charter that outlines roles, investment philosophy, dispute resolution, and succession mechanisms. Combine this with a governance board and professional advisors from the outset.
