UAE Structuring for High Net Worth Individuals

Start with Objectives and an Asset Map

Before selecting a structure, identify what the plan needs to achieve: business continuity, family governance, orderly succession, consolidated ownership, investment administration or philanthropy. Separate these objectives so that each can be addressed with an appropriate legal and administrative tool.

Prepare an inventory of assets and liabilities, including location, legal owner, approximate value, financing, co-owners and any restrictions on transfer. Include UAE and overseas property, company shares, bank and investment accounts, intellectual property and existing trusts or foundations.

UAE Holding Companies

A holding company can own shares or other assets and centralise aspects of governance, depending on its jurisdiction, legal form and constitutional documents. It may help organise a group, but it does not automatically simplify every transfer, eliminate tax, protect assets from creditors or replace the operating licences of businesses conducting regulated activities.

Assess incorporation and annual costs, ownership rules, substance, accounting, tax treatment, banking, reporting, succession and how the company will interact with operating entities and asset registries. Obtain advice in each jurisdiction where the company, owners or assets have a relevant connection.

UAE Foundations and Family Governance

A foundation is a separate legal entity established under a particular jurisdiction’s framework and governing documents. Depending on the applicable law, it may hold and administer assets under a council or other governance arrangement and may be considered for family wealth or succession planning.

DIFC, ADGM and other jurisdictions have their own rules, eligibility, governance, filing, cost and administration requirements. Compare those rules with the family’s purpose and assets. A foundation is not simply a substitute for a will, and its treatment in other countries must be assessed separately.

Asset Protection: Understand the Limits

A holding structure or foundation does not automatically make assets immune from creditors, legal claims, tax authorities, family claims or insolvency proceedings. Transfers can be challenged under applicable law, and factors such as timing, solvency, control, purpose and disclosure may matter.

Asset planning should be lawful, transparent and established for a genuine purpose. Do not transfer assets to frustrate existing or anticipated claims or to conceal ownership. Obtain independent legal and tax advice before restructuring or transferring assets, especially if disputes, creditor concerns or reporting obligations exist.

Succession Planning and Family Wealth

Succession planning can involve wills, company constitutional documents, shareholder agreements, powers of attorney, insurance and appropriate ownership structures. These tools serve different purposes and should work together. A will may address distribution and appointments within its scope, while a company’s governing documents determine how ownership and management rights operate.

For families with assets in several countries, local rules and registration systems can affect how an instrument is recognised and applied. Review existing documents for conflicts, confirm their jurisdictional scope and coordinate advice across countries. Consider governance, decision-making, liquidity for heirs and continuity of family businesses.

Residency, Tax and Cross-Border Reporting

UAE residence status and tax residence are separate questions. A residence visa, company or foundation does not by itself determine an individual’s tax residence or end obligations in another country. Corporate residence, permanent establishment, controlled foreign company rules, transfer pricing, inheritance or gift taxes and reporting can be relevant depending on the jurisdictions and facts.

Before moving, forming a structure or changing ownership, obtain coordinated advice in the UAE and each country where the individual, entity, beneficiaries or assets have a connection. Confirm any tax registrations, filings, beneficial ownership records and ongoing reporting obligations.

Family Offices and Ongoing Administration

A family office is an organisational approach to coordinating some combination of investment oversight, reporting, governance, philanthropy and family administration. The right model depends on the family’s scale, needs, regulatory perimeter and available internal or external expertise.

Establish clear mandates, decision rights, conflicts procedures, record keeping, data security and service-provider oversight. Where investment or other regulated services are involved, determine whether authorisation or specialist advice is required before activities begin.

Questions to Ask Before Choosing a Structure

1. What specific problem is the structure intended to solve, and what are its limitations?
2. Which assets will be included, who legally owns them and where are they located?
3. What laws, taxes, reporting and creditor or family rights may apply in each relevant country?
4. Who will control and administer the structure, and what succession or governance rules apply?
5. What are the setup, annual administration, audit, filing and professional-advice costs?
6. How will the structure interact with existing wills, companies, trusts, financing and contracts?
7. What events would justify a review, amendment or orderly wind-down?

Frequently Asked Questions