Single Family Offices (SFOs)

Single Family Offices (SFOs) in DIFC and ADGM

Single Family Offices (SFOs) are private entities established to manage the wealth, assets, and private affairs of a single family. Both DIFC and ADGM provide clear frameworks for SFOs, classifying them as non-regulated business activities, provided they serve only one family.

Key Features

• Governance : Incorporated as private companies, governed under company regulations rather than financial services laws.

• Scope of Activities :

  • Manage the wealth and private affairs of a single family.

  • Provide administrative and operational support for family-owned assets.

  • Cannot provide financial or advisory services to third parties or the public.

• Regulatory Exemption :

  • Not subject to DFSA (DIFC) or FSRA (ADGM) oversight if serving a single family only.

  • If services extend beyond one family (e.g., multi-family office, managing third-party assets), it becomes a regulated financial activity.

• Investable Assets :

  • DIFC requires a minimum of USD 50 million in investable or liquid assets.

  • ADGM requires a minimum of USD 30 million in investable or liquid assets.

• Authorized Signatories : Names appear on the licence.

• Office & Substance : Must maintain a registered office within DIFC/ADGM; eligible for visas depending on office space. Flexi desk option acceptable.

• Data Protection : Required to comply with DIFC/ADGM data protection regulations if processing personal data.

Benefits

• Centralises family wealth management under one structure.

• Provides continuity and long-term governance across generations.

• Enhances asset protection and confidentiality.

• Access to the legal certainty of common law jurisdictions.

• Eligible for UAE Corporate Tax exemptions if structured correctly.

Do’s

• Restrict services to one family only.

• Maintain proper governance through Charter, By-Laws, or Articles.

• Ensure compliance with data protection, AML, and tax obligations.

• Use the SFO to consolidate diverse assets (real estate, portfolios, companies) under one umbrella.

Don’ts

• Do not provide services to third parties or external clients.

• Do not assume regulatory exemption applies if operating as a multi-family office.

• Do not neglect updating governance documents as family needs evolve.

Key Takeaway

SFOs in DIFC and ADGM are ideal for high-net-worth families seeking to centralise their wealth and governance under a confidential, tax-efficient structure. They are non-regulated if restricted to one family, but moving into multi-family services requires financial regulatory licensing.