Setting Up a Family Office Through an Offshore Company in Dubai

While wealth is ever more global and advanced, Ultra-High-Net-Worth Individuals (UHNWIs) are increasingly turning to family offices to consolidate and protect their fortunes.  

A family office is not just an investment advisor, it is a private, full-service enterprise managing everything from investing to estate planning, philanthropy, and even lifestyle needs. In recent years, Dubai has emerged as one of the preferred destinations for setting up a family office.  

Thanks to its tax-effective policies, stable regulatory climate, and global central location, Dubai offers an enticing mix of confidentiality, freedom, and global connectivity. Paired with an offshore company, a Dubai family office is even more powerful, offering legal protection, global reach, and higher confidentiality.  

Knowing Family Offices and Offshore Companies 
In order to understand why this organization is effective, let's break down the elements. A family office could be a Single-Family Office (SFO), an office for a single extremely wealthy family, or a Multi-Family Office (MFO), an office for several families who have shared administrative and financial resources.  

The roles of a family office are multifaceted: wealth and investment management, succession planning, legal work, tax planning, and even concierge services such as real estate services and travel planning. 

Nonetheless, an offshore company has to be licensed in a foreign location outside the domicile of the family, usually for asset protection, international investments, or holding intangible assets. Offshore companies in Dubai are usually established in JAFZA Offshore or RAK ICC, each with their advantages depending on the nature of business and assets. 

Why Dubai?  

Strategic Location and Time Zone 
Dubai is geopolitically situated at the intersection of Europe, Asia, and Africa. It shares the same time zone as the major global markets, allowing family offices to be in sync with global trading times. This is particularly useful for cross-border portfolio families and international business groups. 

Tax Efficiency and Legal Infrastructure 
The UAE offers zero personal income tax, zero capital gains tax, and no inheritance tax. With over 130 double taxation treaties, it is a compelling choice for families aiming to minimize tax leakage. Additionally, Dubai’s legal ecosystem, especially in DIFC and ADGM, is based on English common law and features independent courts, giving investors the confidence of a well-understood legal framework. 

Political and Economic Stability 
The UAE is politically neutral, stable currency (pegged to the USD), and has good banking regulation. These are particularly handy for long-term wealth structures where stability is paramount above all else. 

Access to World-Class Services 
A developed financial infrastructure exists in Dubai, with world-class services offered by top-shelf banks, law firms, tax advisors, and trust counselors. You have everything you need to function as a family office effectively. 

Legal Framework and Regulatory Considerations 

Offshore Company Regulations 
Offshore UAE companies are most commonly incorporated in RAK ICC or JAFZA Offshore. They may not conduct business within the UAE but are suited for holding assets, opening offshore bank accounts, and managing overseas investments. Despite being private, these companies do have to follow KYC, AML, and UBO reporting. 

Family Office Licensing in DIFC and ADGM 
Both DIFC and ADGM have instituted specifically family-office-friendly frameworks. These comprise such aspects as unambiguous licensing processes, amounts of capital, and operational prerequisites. DIFC, for instance, entails a minimum threshold of assets and the appointment of critical personnel such as a compliance officer. 

Compliance and Reporting Obligations 
UAE’s legislation adheres to global standards such as the OECD's Common Reporting Standard (CRS) and FATF guidelines. The primary requirements include UBO disclosure, economic substance filing, and GDPR-style data protection. Non-compliance can result in fines, reputational loss, or restriction of banking access. 

Step-by-Step How to Set Up a Family Office with an Offshore Company 

1. Establish the Purpose and Strategy 
Define your purpose: Is the structure being built for asset protection, succession, or cross-border investment? Will the family office be managing philanthropy or offering concierge services? These goals will guide each next step in planning. 

2. Select the Suitable Offshore Jurisdiction 
For real estate investment and holding assets, RAK ICC is most preferred. If the family is interested in real estate investment in Dubai, JAFZA Offshore would be more suitable. Consider the initial setup costs, day-to-day compliance issues, and opening international bank accounts. 

3. Incorporate the Offshore Company 
Hire an official agent to draft and file incorporation papers. These include the Memorandum of Association, director/shareholder data, and KYC documents. UAE offshore businesses are typically incorporated within days. 

4. Establish the Family Office 
Apply for a family office in either ADGM or DIFC, as per your choice of access to financial services. Acquire an appropriate license, lease office space, and hire personnel. Depending on your organization, you may hire full-time personnel or outsource specialized activities like investment advisers or legal representatives. 

5. Structure the Relationship Between Both Entities 
The family office may be the strategic and administrative hub, and the asset-holding vehicle may be the offshore company. This makes for a straightforward legal and operating framework, enhancing governance and tax planning. 

Principal Benefits of Offshore Structures for Family Offices 

Confidentiality and Asset Protection 
Offshore companies are not publicly listed in business records, maintaining owners' and directors' anonymity. This is ideal for celebrities or families that require discretion. 

Access to Global Banking and Investment 
Offshore companies can maintain multi-currency accounts, invest in overseas assets, and transact with more freedom than onshore companies. This is ideal for families that have international portfolios. 

Simplified Succession and Estate Planning 
By locating trusts or foundations within the offshore form, families will be able to enjoy effective generation transfer, eliminate inheritance disputes, and protect wealth from litigation or geopolitical risks.   

Operational Efficiency 
Fewer reporting and audit obligations accompany offshore companies. This lowers costs and facilitates governing, enabling the family to focus on strategic decisions more easily.  

Costs and Timelines to Expect 
Setting up a family office with an offshore company involves several steps of investment. To establish an offshore company in RAK ICC or JAFZA, the cost starts from AED 10,000 based on service providers and complexity. Applying for a family office in DIFC or ADGM can cost over AED 50,000 annually, licensing fees, office rental, and compliance expenses.  

Time frame: Offshore establishment could be done in 3–5 working days, and a fully operational family office might take 4–8 weeks based on how complex it is. 

Practical Example: Offshore Family Office Case Study 
Consider the case of a European entrepreneur with equity holdings in Asian and European startups. She forms a RAK ICC offshore company to aggregate ownership of assets and a family office in DIFC to manage philanthropy, tax planning, and cross-border investments.  

Within 12 months, the structure streamlined governance, facilitated international banking, and provided a tax-neutral platform for succession planning. Her family was able to set up a charitable trust, optimize real estate holdings, and access international venture capital opportunities, all from Dubai.  

This case illustrates how Dubai’s offshore ecosystem can be leveraged for comprehensive wealth management and legacy building. 

FAQs: Common Questions About Family Office Setup in Dubai 

Q: Can an offshore company own property in Dubai? 
A: Yes, but solely via JAFZA Offshore, which can acquire property in designated freehold locations in Dubai. 

Q: Is this configuration available only for UHNWIs? 
A: Although historically employed by UHNW families, this arrangement is now within reach of HNW individuals wishing to protect global assets and ensure succession. 

Q: Can the same configuration be employed for crypto or digital assets? 
A: Yes. Offshore companies in RAK ICC are increasingly being used to manage crypto investments, provided risk and compliance structures are put in place. 

Q: What is the minimum capital? 
A: Offshore companies typically have no minimum capital requirement, although DIFC and ADGM family offices require proof of substantial assets under management. 

Creating a Future-Proof Legacy in Dubai 
Setting up a family office through an offshore company in Dubai is one of the most strategic moves a high-net-worth family can make. It offers global flexibility, legal protection, and a strong foundation for legacy planning.  

However, to maximize the benefits and avoid compliance risks, it is essential to design your structure with precision, transparency, and expert guidance. 

Get Started with Expert Support 
In Dubai, business setup consultancies assist in setting up compliant, future-proof offshore setups and family offices that suit your individual legacy goals. If you're looking for consolidating global assets, developing a succession strategy, or just want to gain more knowledge, there are specialists here to guide you.  

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com or WhatsApp & call us at  +971 55 234 7124! 

‍