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Four Steps to open Family Office in the UAE

Creating a Family Office is a complex process that begins with sound strategic planning and careful design. MGP Consulting suggests considering the four stages of creating a Family Office, which we are successfully implementing in the UAE

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1. Study

Analysis of the family's vision, goals and needs. Determining the tax model, technology and management structure, establishing the degree of business readiness for succession

2. Design

Design of legal and management structures. Formation of a package of services provided by the office.

Determining the budget structure

3. Structuring

Creation of the Family Office infrastructure, including establishing a company, renting premises, hiring staff, implementing IT infrastructure, developing procedures and policies

4. Launch

Implementation of management systems, formation of strategic partnerships, implementation of reporting processes, ensuring effective communication between family and team, conducting testing of the operation of all systems

Research - Foundation for Family Office

1. Understanding the vision and goals:

  • Determining long-term and short-term goals for family and business

  • Understanding family values ​​and their impact on business strategies

2. Analysis of financial and legal situation:

  • Conducting a financial audit to assess the current state of assets

  • Legal analysis to understand tax and legal obligations in Dubai

3. Assessing risks and opportunities:

  • Identification of potential risks for family and business

  • Identifying investment and development opportunities in the Dubai market

4. Technological and operational overview:

  • Assessing the current use of technology in asset management and business operations

  • Determining Management Needs

  • Assessing reporting and compliance requirements

5. Consultations with Experts:

  • Interaction with consultants to obtain specialized advice

  • Conducting interviews with family advisors to gain an in-depth understanding of family needs and preferences

RESULT

 

After completing this comprehensive initial assessment, you will be able to determine whether establishing a Family Office meets your needs and family goals.

 

This process will give you confidence in understanding next steps and priority actions.

 

You will also gain a clear understanding of the most appropriate structure for your Family Office and the upcoming costs associated with setting it up.

Design - Creating a Plan

1. Development of legal and tax structure:

  • Determining the most suitable legal form for Family Office, taking into account UAE tax laws and international regulations

  • Planning a tax strategy to minimize the tax burden2​

2. Management structure:

  • Creating a clear management structure, defining roles and responsibilities within the Family Office

  • Determining staffing needs. Creating job descriptions

3. Definition of essential services:

  • Selecting key services that Family Office will provide, including investment management, estate planning, relocation, family assistance

4. Technologies and operational infrastructure:

  • Determine technology needs for asset management and operations

  • Development of operational infrastructure for efficient operation of Family Office

5. Resource Planning:

  • Budgeting for the creation of a Family Office

RESULT

 

After the second stage, a clear and detailed roadmap for the implementation of your Family Office will be developed.

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This phase will also provide additional process and legal analysis, as well as improved transparency regarding upcoming costs and project timelines.

Structuring - Creating the Basis 

1. Development of legal and tax structure:

  • Determining the most suitable legal form for Family Office, taking into account UAE tax laws and international regulations

  • Planning a tax strategy to minimize the tax burden2​

2. Management structure:

  • Creating a clear management structure, defining roles and responsibilities within the Family Office

  • Determining staffing needs. Creating job descriptions

3. Definition of essential services:

  • Selecting key services that Family Office will provide, including investment management, estate planning, relocation, family assistance

4. Technologies and operational infrastructure:

  • Determine technology needs for asset management and operations

  • Development of operational infrastructure for efficient operation of Family Office

5. Resource Planning:

  • Budgeting for the creation of a Family Office

RESULT

 

Upon completion of the stage, you will have a ready-to-use Family Office that meets all the requirements and needs of your family.

Launch - Transition from Plan to Action

1. Corporate governance system:

  • Establishing decision-making procedures within the Family Office

  • Implementation of control and audit

2. External partnerships:

  • Selecting the necessary external consultants, banks, auditing companies

  • Preparation of contracts for the provision of services

3. Reporting:

  • Implementation and automation of reporting systems

4. Communication and interaction with family:

  • Maintain open lines of communication between family and office staff to ensure mutual understanding and consideration of the views of all stakeholders

  • Ensuring employees are trained and integrated into the corporate culture and family goals

5. Testing:

  • Security check of IT systems

  • Audit of management procedures

  • Conducting test operations to check interaction between departments and systems

  • Obtaining feedback from family on understanding and usability of reporting systems and communication channels

RESULT

 

This step completes the process of creating your Family Office and ensures that it is built on a solid foundation.

 

All key service contracts will be in place with external suppliers and robust legal, digital and reporting structures.

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We will also pay special attention to communication between family members and office staff. This ensures that your original vision, values ​​and ambitions are clearly included in the decision-making process.

Common MISTAKES when creating a Family Office

  • Too much, too fast. Trying to accomplish too many things at once can lead to hasty decisions and inconsistent strategy.

 

  • Lack of structural flexibility. Both short-term and long-term family and business goals must be taken into account when operating a Family Office

 

  • Family Office is not considered a business. It is important to implement documented policies and procedures to minimize the risk of errors and financial losses

 

  • Insufficient attention to data security and risk management. An information security policy should be developed and implemented and attention should be paid to cybersecurity

 

  • The practice of random hiring. It is important to conduct thorough background checks on new employees and develop processes to evaluate their performance

 

  • Poor communication. Limiting interaction between consultants and isolating them from each other can reduce the ability to effectively apply professional expertise

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MGP Consulting can help you avoid common mistakes when creating a Family Office, offering strategic planning, management flexibility, and business process implementation.

 

We ensure the development of clear policies and procedures, a focus on data security and risk management, careful selection and assessment of personnel, and improved internal communication.

 

Our approach minimizes risk, increases efficiency and promotes the sustainability of Family Office.

Why choose MGP CONSULTING
to create a Family Office

  • Global presence: Offices in key locations provide access to international markets and expertise

  • Developed network of partners: Reliable partners around the world in different sectors for a comprehensive service

  • Strategic planning and operational management of a family office

  • Minimizing future risks: We conduct a comprehensive analysis of financial, legal and operational risks to protect assets and ensure sustainable capital growth

  • Strong team: MGP Consulting has assembled a team of reliable lawyers, financial analysts, strategists and HR specialists who guarantee an integrated approach to creating a Family Office and solving client problems

  • Local Expertise: Deep understanding of UAE local laws and tax policies provides clients with business advantages

  • Strategically located office in Dubai: Central location in Dubai facilitates accessibility and interaction with clients

  • Focus on Privacy and Data Security: Highly focused on protecting client information and data, ensuring strong privacy and security in all aspects of operations

  • Experience with complex cases: Extensive experience in complex legal and financial matters, including international cases

  • Business relocation support: Full support of business relocation processes, including legal support, tax planning and integration into a new jurisdiction

ADVANTAGES OF CREATING A Family Office in the UAE

  • Tax regime: The UAE does not impose personal income tax, and there is no property, inheritance or investment tax. A minimum corporate tax of 9% applies to taxable profits exceeding AED 375,000. Companies and branches registered in the UAE free zone that meet certain conditions are eligible for a 0% rate. This makes the country extremely attractive for managing large family assets, ensuring effective tax planning and capital preservation.

  • Legal structures: The UAE offers a stable and flexible regulatory environment, especially free zones such as ADGM (Abu Dhabi Global Market), DIFC (Dubai International Financial Centre) and DMCC (Dubai Multi Commodities Centre), which offer specialized legal structures for Family Offices. These zones offer favorable conditions for the creation and management of family offices with minimal requirements for authorized capital and regulatory reporting.

  • Immigration rules and availability of golden visas: The UAE offers long-term residence permits for investors and entrepreneurs.

  • Living standards: The UAE is one of the most liberal countries in the Gulf with a high quality of life and world-class infrastructure and communications. This creates a positive living and working environment for family offices and their clients.

  • Reputation and Economic Stability: The UAE ranks highly in global indices for economic and political stability, as well as indices for corruption and corporate tax risk, underscoring its attractiveness as a reliable and safe destination for family wealth.

  • Access to talent and skilled professionals: Dubai and Abu Dhabi, the UAE's largest financial and business hubs, offer a wide range of diverse, international and skilled family office professionals.

  • Stable and reliable banking system

The dynamic economic climate makes maintaining family wealth a very difficult task. According to the Family Firm Institute, only 30% of wealth goes to the second generation, 12% to the third, and only 3% to the fourth generation. Beating these odds requires a dedicated team of professionals working in unison to preserve the family's legacy. If you want to manage your wealth sustainably and preserve it for future generations, creating a Family Office is the solution you need

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