DMCC Single Family Office

February 28, 2017

There is a risk of bringing a Client to the subsidiary responsibility by means of arrest and foreclosure on the Client’s assets. To minimize this risk it is proposed to transfer the Client’s assets to a corporate structure with DMCC Single Family Office (“DMCC SFO”) – a company with limited legal capacity (license) in the jurisdiction of the United Arab Emirates – with the possibility of the subsequent asset recovery to the Client’s account.

For this purpose it is proposed to build the following legal structure:

  1. Client establishes a Dutch or a Cypriot trust (“the Trust”), whereby the Customer is the beneficiary;

  2. Trust establishes DMCC SFO;

  3. DMCC SFO owns by affiliated companies.

Introduction of the Trust into the legal structure provides privacy and greatly reduces the probability of foreclosure on the assets. After creating the legal structure the Client’s assets are transferred to DMCC SFO on the basis of the trust management agreement. Thus the Client remains the legal owner of the assets, but the assets are managed by DMCC SFO.

The advantages of DMCC SFO:

  1. Essential reduction of the probability of confiscation and foreclosure on assets is achieved due to the transboundary corporate structure;

  2. The high degree of protection of the Client’s assets inside the corporate structure (ensured by the fact that the owners of DMCC SFO can only be members of one family or a Trust established by them; DMCC SFO can only act in the interest of one family and can not provide services / sell their shares to third parties, etc.);

  3. Client’s assets are becoming more mobile;

  4. Activity of DMCC SFO is not taxed;

  5. Funds from the DMCC SFO accounts can be used as payment of the family members’ expenses.