Advantages of setting up Family Offices in ADGM

May 3, 2024by Jose Joseph0

In today’s rapidly changing financial landscape, affluent families are seeking sophisticated and secure ways to manage their wealth and investments. Family offices have emerged as a highly effective solution, offering tailored financial services to affluent families, managing their assets, and safeguarding their legacies for future generations.  

Among the premier destinations for establishing a family office, Abu Dhabi Global Market (ADGM) stands out as a shining example of a thriving international financial center. In this article, we will explore the benefits of setting up family offices in ADGM, UAE, and the opportunities it presents for preserving and growing wealth. 

ADGM 

Within this realm of bespoke financial solutions, the award-winning international financial centre ADGM emerges as a standout player on the international stage. ADGM comprises of three independent authorities – the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), and ADGM Courts based on English common law. Together, they have crafted a regulatory framework that adheres to the highest international standards, creating a secure and stable operating environment that fosters confidence among investors and families alike. The vigilant Financial Services Regulatory Authority (FSRA) ensures compliance with stringent regulations, providing a robust safeguard for investor interests and preserving the integrity of the financial ecosystem. 

For a complete guide to UAE business setup, see UAE Business Setup Guide: Mainland and Freezones. For a complete guide to Saudi business setup, see A Comprehensive Guide to Company Incorporation in Saudi Arabia. If you would want to incorporate a company in the UAE, Saudi Arabia, or any GCC countries, you may apply or book a free consultation.

Related Service: General Corporate and Commercial Advisory

Setting Up a Family Office in ADGM 

  • Investment Size: There are no minimum investment requirements for setting up a family office in ADGM. This gives families the freedom to decide on their investment size based on their financial goals and aspirations. 
  • Legal Structure: The legal structure of a family office in ADGM can vary according to the unique needs and preferences of each family. Common structures include Restricted Scope Companies (RSCs) and Foundations, each with distinct benefits catering to specific objectives. 
  • Eligibility: To be eligible to set up a family office in ADGM, a family must have a closely related group of individuals who are united by blood, marriage, or adoption and share a common interest in wealth management and preservation. 
  • Office/Premises in ADGM: A physical office is not required to operate a family office in ADGM.  
  • Management: The management structure of a family office depends on its legal setup. For private companies, a minimum of one director is required to oversee operations and decision-making. 
  • Reporting: ADGM requires different levels of reporting depending on the legal structure of the family office. For example, Restricted Scope Companies (RSCs) must submit an annual return, but there is no mandatory filing of accounts or audit requirements. 
  • Public Register: As far as the public register is concerned, the accessibility of information depends on the legal structure. RSCs, for instance, maintain records of directors and shareholders but do not make this information publicly accessible. 

Thus setting up a family office in Abu Dhabi Global Market (ADGM) offers an array of advantages and opportunities for affluent families seeking to manage, preserve, and grow their wealth. The flexibility in investment size, legal structures, and reporting requirements further enhances ADGM’s appeal as a leading international financial center.  

About ATB Legal

ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats. Please feel free to reach out to us at office@atblegal.com for a non-obligatory initial consultation.

by Jose Joseph

Jose is a Senior Associate at ATB Legal. As a legal consultant he handles and extensively writes about Arbitrations in DIAC & ICC, DIFC and ADGM matters, corporate and commercial litigations, and trademark.

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