Start with the Decision, Not the Sales Pitch
The UAE draws ultra-high-net-worth families for reasons that go well beyond headline tax rates. Political stability in a volatile region, a currency pegged to the US dollar, world-class physical and digital infrastructure, direct flight connectivity to virtually every major financial centre, and a legal framework that has been steadily modernized over two decades all combine to create a jurisdiction that functions as a genuine operational base rather than a mere brass plate. For families managing wealth across multiple geographies, the UAE offers something increasingly rare: a credible domicile where holding structures, family offices, and operating entities can coexist under one regulatory umbrella while maintaining access to both Western and Eastern capital markets.
That said, the two most expensive mistakes UHNW families make happen before a single document is filed. The first is choosing a jurisdiction within the UAE because it appears cheap or because a formation agent promotes a fast turnaround. Speed and cost are irrelevant if the resulting entity cannot open a functioning bank account, satisfy substance requirements under international tax frameworks, or hold the specific asset classes the family needs to shelter. The second mistake is forming a company before understanding the banking and compliance reality that entity will face on day one. Banks in the UAE have tightened onboarding dramatically since 2020, and a holding company that looks hollow on paper will be declined by every serious institution regardless of the wealth behind it. The correct sequence is always strategy first, then banking feasibility, then formation.
A family office managing real estate in London, private equity stakes in Southeast Asia, and an operating tech company in Riyadh faces an entirely different structural question than a single founder who wants to consolidate IP and license it regionally. Both may end up in the UAE, but the jurisdiction, license type, corporate layering, and banking approach will diverge sharply. Starting with the decision rather than the product listing is what separates a durable structure from one that needs expensive restructuring within two years.
The Three Setup Worlds and When Each Makes Sense
The UAE offers three structurally distinct environments for company formation: mainland, free zone, and offshore. Each operates under different regulators, confers different operational rights, and is perceived differently by banks, counterparties, and international tax authorities. Treating them as interchangeable is one of the most common errors in family structuring.
Mainland companies are licensed by the Department of Economic Development (or equivalent authority) in the emirate of formation. They can trade freely anywhere in the UAE, contract with government entities, and operate without geographic restriction within the country. For UHNW families, mainland is often the correct choice when the structure needs to hold UAE real estate directly, enter into joint ventures with local partners, or conduct activities that require specific regulatory approvals tied to federal or emirate-level authorities. Mainland entities also tend to be viewed more favourably by UAE banks because they carry clearer substance signals: a physical office, local staff, and a visible operational footprint.
Free zone companies are regulated by the authority governing that specific zone. Each free zone has its own licensing regime, fee structure, visa allocation model, and compliance expectations. The key operational limitation is that a free zone entity generally cannot transact directly with the UAE domestic market without a local distributor or service agent arrangement, though this has been evolving and depends on the specific zone and activity. The advantage is streamlined formation, full foreign ownership as standard, and often lower overhead for businesses that do not need local market access. For holding companies, certain free zones have developed regimes specifically tailored to asset holding, IP ownership, and investment management, making them attractive for UHNW families that want a clean holding layer above operating subsidiaries elsewhere.
Offshore companies are registered in a UAE free zone but are not issued a trade license and cannot conduct business within the UAE. They exist primarily as legal vehicles for asset holding, share ownership, and international transactions. An offshore company registered in, for example, Jebel Ali or RAK ICC can own shares in other companies, hold bank accounts, and enter into contracts internationally, but it cannot rent office space, obtain visas, or operate domestically. For families, offshore entities can serve as intermediate holding layers, but they carry a perception risk: international banks and tax authorities increasingly scrutinise offshore structures for substance, and a UAE offshore company with no employees, no physical presence, and no operational rationale may trigger the same red flags as a Caribbean shell. The old assumption that offshore equals privacy and simplicity no longer holds in a post-CRS, post-BEPS world.
Free Zones in Practice
There are more than forty free zones across the UAE, and they are not equivalent. DIFC and ADGM operate under common law legal systems with their own courts, making them the preferred domicile for family offices, fund structures, and wealth management entities that need legal certainty recognised by international counterparties. DMCC is the largest free zone by number of companies and is heavily oriented toward commodities trading, though it also licenses a wide range of commercial and service activities. DAFZA, IFZA, RAKEZ, and others each serve different market segments with varying levels of regulatory sophistication, cost, and banking acceptance.
For a UHNW family evaluating free zones, the critical questions are not about formation cost. They are: does this zone license the activity I actually need; does the zone's regulatory reputation help or hinder my banking relationships; what are the real substance requirements I must maintain; and what does ongoing compliance look like year over year. A holding company in ADGM, for instance, benefits from a legal framework that international banks and institutional investors understand immediately. The same holding activity licensed in a lesser-known zone may be perfectly legal but could face friction when trying to open correspondent banking relationships or when being assessed by a European tax authority reviewing the family's structure.
Substance is no longer optional. The UAE has implemented economic substance regulations that require entities earning certain categories of income to demonstrate adequate employees, expenditure, and decision-making within the country. A holding company that exists only on paper, with no staff, no board meetings held in the UAE, and no demonstrable management activity, risks being reported to foreign tax authorities and losing whatever planning benefit it was meant to provide. Families should assume that every free zone entity will need to show genuine activity proportionate to its function.
Visa allocation in free zones is tied to office type and package. A flexi-desk or virtual office may support one or two visas, while a physical office will support more depending on square footage. For UHNW families, this matters when key individuals need UAE residency tied to the entity, or when the family office will employ staff locally. Planning visa needs before selecting a zone avoids the frustration of upgrading mid-stream, which often means changing the license package entirely.
Renewal costs deserve particular attention. The first-year package price quoted by formation agents rarely reflects the true annual cost once government fees, establishment card renewal, immigration file maintenance, medical testing, visa stamping, Emirates ID renewal, accounting obligations, audit fees where applicable, and compliance documentation are added. A realistic cost model accounts for all of these from the outset and budgets a contingency for regulatory changes, which in the UAE can occur with limited advance notice.
Mainland in Practice
Mainland formation makes strategic sense when the family structure requires unrestricted access to the UAE domestic market, needs to contract directly with government or semi-government entities, or involves activities that are specifically regulated at the emirate or federal level. Certain activities in real estate brokerage, healthcare, education, food trading, and financial services either require or strongly favour a mainland license.
The formation process involves the relevant emirate's licensing authority, and the requirements vary by activity. Some activities require pre-approvals from sector regulators before the license can be issued. The company will need a physical office that meets minimum size requirements, which vary by authority and activity. Foreign ownership rules have been liberalised substantially, but some activities remain on restricted lists where local partnership or specific approvals are needed. Families should verify the ownership rules for their specific activity code rather than relying on general statements about full foreign ownership being available on the mainland.
For holding purposes, a mainland company can own UAE real estate, shares in other UAE entities, and vehicles directly. It can also enter into financing arrangements with UAE banks more easily than some free zone counterparts, because mainland entities are generally perceived as having stronger local roots. When a UHNW family's primary assets include UAE property, local joint ventures, or revenue streams from UAE-based contracts, mainland is often the foundation of the structure, with free zone or ADGM entities layered above for international holding or IP purposes.
The administrative obligations on the mainland are real. Trade license renewal is annual. Establishment cards, immigration files, and visa quotas must be maintained. Corporate tax registration and filing are mandatory for entities meeting the threshold. VAT registration applies if taxable supplies exceed the mandatory threshold. Bookkeeping must be maintained from day one, and depending on the legal form and size of the entity, an annual audit may be required. None of this is unmanageable, but it requires a system, not a once-a-year scramble.
The Cost Map That People Fail to Budget
Formation agents quote packages. Families should budget systems. The distinction matters enormously because the package price is typically the smallest component of what a UAE entity actually costs to maintain properly over its lifetime.
One-time formation costs include the initial license fee, memorandum and articles drafting or adoption, establishment card issuance, immigration file opening, any pre-approval fees for regulated activities, initial visa costs including medical testing and Emirates ID for founders and key personnel, and the first office or desk arrangement. These costs vary significantly by jurisdiction, zone, and activity. Rather than quoting specific numbers that change frequently and depend on dozens of variables, the correct approach is to request an itemised quote from the relevant authority or a reputable formation consultant that breaks down every government fee, every service charge, and every third-party cost separately.
Annual recurring costs include license renewal, establishment card renewal, office or desk renewal, immigration file renewal, visa renewal costs for all personnel, accounting and bookkeeping, corporate tax compliance preparation and filing, VAT compliance where applicable, audit fees where required, registered agent fees in some free zones, compliance documentation updates such as UBO declarations and economic substance filings, and any regulatory reporting obligations tied to the specific activity. For a UHNW family holding company in a well-regarded free zone with two or three visas, a physical office, professional accounting, and proper compliance support, the annual operating cost of the entity alone, before any business expenses, is material enough to warrant a dedicated budget line.
The hidden costs in cheap packages deserve particular scrutiny. A formation agent offering an all-inclusive price that seems dramatically lower than competitors is almost certainly omitting items: government fee increases, medical testing, typing and processing charges, attestation fees, PRO service fees for immigration processing, bank account assistance, and compliance documentation. The family discovers these omissions at the worst possible time, usually during banking onboarding or first renewal, when the gap between what was promised and what is required creates delays, additional costs, and sometimes structural problems that require re-formation.
Bank Account Reality and How to Become Bankable
Banking is the single point of failure in most UAE setups. A perfectly formed company with the right license, the right jurisdiction, and the right structure is functionally useless if it cannot open and maintain a bank account. For UHNW families, the banking challenge is paradoxically both easier and harder than it is for smaller businesses. Easier because the wealth is demonstrable. Harder because the compliance scrutiny on large, complex, multi-jurisdictional structures is intense, and banks have no obligation to accept any client regardless of wealth.
The KYC logic that UAE banks apply is layered. Source of funds asks where the money coming into this specific account originates: which entity, which transaction, which counterparty. Source of wealth asks the broader question of how the beneficial owners accumulated their net worth over their lifetime. Expected transaction profile covers the volume, frequency, currency mix, and geographic flow of funds the account will handle. Counterparty assessment looks at who the entity will be paying and receiving from, and whether those counterparties are in high-risk jurisdictions or sanctioned sectors. Industry risk evaluates whether the licensed activity falls into categories that banks consider elevated risk: trading in certain commodities, cash-intensive businesses, cryptocurrency-adjacent activities, or anything touching sanctioned regions.
Beneficial ownership clarity is non-negotiable. Banks must identify every individual who ultimately owns or controls the entity, through every layer of the corporate chain. A UHNW family with a holding structure that runs through three jurisdictions, two trusts, and a foundation will need to produce a complete ownership chart with supporting documentation at every level. Gaps, ambiguities, or structures that appear designed to obscure ownership will result in immediate rejection. This applies equally to families from jurisdictions where corporate registers are less transparent; the bank will require certified documents, legal opinions, or notarised declarations to fill any informational gap.
Common rejection causes include inconsistency between the story told during the bank meeting and the documentation provided; missing contracts or invoices that demonstrate genuine business activity; high-risk geography exposure, particularly where counterparties or fund flows involve countries under sanctions or grey-list scrutiny; cash-heavy business models with insufficient controls; mismatch between the licensed activity and what the company actually does; unrealistic financial projections that suggest the company exists primarily as a bank account rather than a business; and website or digital presence that appears hastily assembled or inconsistent with the claimed operations.
A practical bank readiness file for a UHNW holding company should contain the following elements prepared as a coherent package: a clean corporate structure chart showing every entity from the top beneficial owner down to the account-opening entity, with jurisdiction and ownership percentages at each level; certified constitutional documents for every entity in the chain; passport copies and proof of address for all UBOs and signatories; a detailed source of wealth narrative supported by documentation such as business sale agreements, inheritance records, investment portfolio statements, or audited accounts from operating businesses; source of funds documentation showing specifically where the initial deposits will come from, with supporting bank statements or transfer records; a transaction profile document that honestly describes expected inflows and outflows by type, currency, geography, and frequency; contracts, engagement letters, or term sheets demonstrating real commercial relationships; a professional website or documented operational footprint that aligns with the licensed activity; and audited or management accounts for any existing entities in the group.
The preparation of this file is where many families underestimate the work involved. It is not a weekend exercise. For a complex multi-jurisdictional structure, assembling, certifying, attesting, and organising a complete bank readiness package can take weeks. Starting this process before or in parallel with formation, rather than after, is essential.
Corporate Tax and VAT in Practical Terms
The UAE introduced federal corporate tax effective for financial years starting on or after 1 June 2023, and UHNW families structuring entities in 2026 must treat tax compliance as a foundational element of their setup rather than an afterthought. The standard rate applies to taxable income above a threshold, with a zero rate applying to income below that threshold. However, the specific application to any given entity depends on its legal form, its activities, whether it qualifies for any exemptions or elections, and the nature of its income. Free zone entities that meet qualifying conditions may be eligible for a zero-rate regime on qualifying income, but the conditions are specific, involve substance and activity tests, and are subject to ongoing compliance requirements that must be met every reporting period.
For holding companies, the treatment of dividends, capital gains, and intra-group transactions under the corporate tax law involves specific provisions and elections that require professional analysis. Making assumptions based on headlines or general summaries is dangerous. A family holding company that receives dividends from a subsidiary in another jurisdiction, earns rental income from UAE property, and recognises a capital gain on a share disposal may find that each income stream is treated differently under the law. Transfer pricing rules apply to related party transactions, and UHNW families with multiple entities in their group must document and price intercompany transactions at arm's length.
The practical discipline this requires is bookkeeping from day one. Not bookkeeping done retroactively before the filing deadline, but contemporaneous recording of every transaction, every invoice, every receipt, and every intercompany charge as it occurs. The entities in a UHNW family structure should be on accounting software from the day of formation, with a qualified bookkeeper or accountant maintaining records on at least a monthly basis. Tax filing deadlines are fixed, and penalties for late filing, late payment, or inaccurate returns are specified in the law. Treating tax compliance as a system, with monthly bookkeeping, quarterly reviews, and annual filing well ahead of deadline, prevents the panicked year-end exercise that leads to errors and omissions.
VAT at five percent applies to most goods and services in the UAE, and the registration threshold is mandatory once taxable supplies exceed the specified amount. Families operating businesses through UAE entities need to monitor turnover against the threshold and register before it is crossed, not after. VAT compliance requires proper tax invoicing, accurate record-keeping, and timely filing of returns. The penalties for failure to register, late filing, or errors in returns are material. For holding companies, the VAT position depends on whether the entity is making taxable supplies; a pure equity holding company may not be required to register, but one that provides management services, charges intercompany fees, or earns rental income may well be. The analysis is entity-specific and should be done by a qualified tax adviser during the structuring phase, not discovered during an audit.
Visas and Residency Through a Company
A UAE company license does not automatically generate an unlimited number of visas. Visa allocation is tied to the license type, the physical office space, and the immigration rules governing the relevant jurisdiction. A free zone flexi-desk package may include one or two visa allocations. A physical office of a certain size may support a larger quota. Mainland companies follow emirate-level immigration rules that tie visa numbers to office space and activity.
For UHNW families, the visa question usually has several dimensions. The primary family member who will be the UBO or director needs a visa tied to the entity, which serves as the basis for their Emirates ID and establishes their tax residency position if they spend sufficient time in the UAE. A spouse and children can typically be sponsored under a family visa, subject to salary or income thresholds and other requirements that vary by category. Key staff in a family office, whether an investment manager, a personal assistant, or an accountant, each need individual visas tied to the employing entity, with associated costs for medical testing, Emirates ID, and labour cards where applicable.
Long-term residency options have expanded considerably. The UAE offers various categories of extended residency for investors, entrepreneurs, specialised talent, and other qualifying individuals, with validity periods that extend well beyond the standard employment visa cycle. Eligibility criteria, documentation requirements, and processing timelines vary by category and can change. Families considering the UAE as a primary residence should work with immigration counsel to identify the most appropriate category based on their specific circumstances, investment profile, and long-term plans. Making promises about specific visa outcomes is irresponsible; the correct approach is to identify the target category, prepare the documentation thoroughly, and submit through proper channels.
Tax residency is a related but distinct question. Holding a UAE visa and Emirates ID does not automatically make an individual tax resident in the UAE for the purposes of other countries' tax laws. Many jurisdictions apply their own tests based on days of physical presence, centre of vital interests, habitual abode, or nationality. UHNW families must coordinate their UAE residency planning with tax advice in every jurisdiction where they have connections, assets, or filing obligations. The UAE has issued a domestic tax residency framework and can issue tax residency certificates, but these certificates are evidence to present to foreign authorities, not guarantees of how those authorities will assess the individual's position.
Trade, Import Export, and Cross-Border Operations
UHNW families increasingly use UAE entities not just as holding vehicles but as active trading platforms, particularly for commodities, electronics, textiles, and luxury goods moving between Asia, Africa, and Europe. The UAE's geographic position, port infrastructure, and free zone logistics capabilities make it a natural hub for physical trade flows. However, a trading company is only as good as its compliance posture, and the operational details matter enormously.
Correct activity selection at the licensing stage is foundational. A company licensed for general trading may not be authorised to handle specific categories of goods that require additional permits, such as food items, pharmaceuticals, dual-use goods, or precious metals. Getting the activity codes right from the outset avoids the situation where a shipment is held at customs because the importing entity's license does not cover the goods being cleared.
Documentation discipline for trade is extensive. Purchase orders, commercial invoices, packing lists, certificates of origin, bills of lading, insurance certificates, and customs declarations must all align. Discrepancies between the invoice value and the declared customs value, or between the goods description on the commercial invoice and the HS code used for customs clearance, trigger inspections, delays, and potential penalties. Payment sequencing matters equally: letters of credit, advance payments, and open account terms each carry different risk profiles, and the choice must align with the counterparty relationship, the commodity, and the geography.
For families with trade operations, counterparty due diligence is not optional. The UAE has implemented sanctions screening, anti-money laundering, and counter-terrorism financing obligations that apply to all commercial entities. Trading with a counterparty that appears on a sanctions list, or routing payments through a jurisdiction under restrictions, can result in account freezes, regulatory investigation, and reputational damage that extends far beyond the UAE entity. Screening counterparties before entering into contracts, maintaining records of due diligence, and updating checks periodically are minimum requirements.
Digital Business and E-Commerce
Consulting firms, software companies, marketing agencies, and online retail operations form a large and growing share of UAE company formations by UHNW families and their portfolio companies. The licensing framework accommodates these activities, but the specific license category, zone, and setup parameters must match what the business actually does.
A software company licensing its product globally from the UAE needs a license that covers IT services or software development, depending on the jurisdiction's activity list. A consulting firm serving clients in Europe needs a professional services or management consulting license. An e-commerce operation selling physical goods internationally needs a trading license with the correct activity codes, plus logistics and payment infrastructure that works across its target markets.
Payment gateway integration is where many digital businesses encounter friction. International payment processors have their own compliance requirements for UAE entities, including verified business documentation, website review, product category restrictions, and reserve or holdback policies for new merchants. Chargeback exposure is a real cost for e-commerce operators, and the refund and dispute resolution policies must be built into the business model, not discovered when the first chargeback arrives. Data protection considerations are also increasingly relevant, particularly for businesses handling EU customer data, where GDPR obligations apply regardless of where the company is domiciled.
For UHNW families running portfolio companies through UAE entities, the licensing and compliance setup for each digital business should be treated individually. A single holding company may sit above multiple operating entities, each with its own license, bank account, payment gateway, and compliance framework tailored to its specific activity. Trying to run fundamentally different businesses through a single license to save costs almost always creates problems, either at the banking stage or when a client or regulator asks pointed questions about what exactly the entity does.
Asset Protection, Holding Structures, and IP Ownership
The core logic of using a holding company is separation. The holding entity owns assets; operating entities bear commercial risk. If an operating company faces a claim, lawsuit, or creditor action, the assets held in the separate holding entity are insulated, at least in principle. For UHNW families, this separation is applied across multiple dimensions: real estate held in a property holding company, intellectual property owned by an IP holding company and licensed to operating entities, investment portfolios held in an investment holding vehicle, and brand assets owned separately from the businesses that use them.
The UAE offers several jurisdictions that are well-suited to holding structures. ADGM and DIFC, with their common law legal systems and dedicated courts, provide a legal environment that international counterparties and lenders understand and trust. Free zone entities in zones with established holding company regimes can serve as intermediate layers. The choice of jurisdiction for the holding company should be driven by what the company will hold, who the counterparties are, and where enforcement of rights might need to occur.
IP ownership is a particularly important consideration for families with technology businesses, consumer brands, or media assets. Placing IP in a dedicated holding entity and licensing it to operating companies creates both asset protection and potential tax planning efficiency, but the arrangement must be genuine. The licensing terms must be at arm's length, the holding entity must have the substance and capability to manage the IP, and the arrangement must be documented with proper licensing agreements, royalty calculations, and transfer pricing documentation. A hollow IP holding company that receives royalties but has no staff, no decision-making capability, and no genuine connection to the IP's development or management will not withstand scrutiny from tax authorities or courts.
Real estate structuring through UAE holding entities is common for families with property portfolios. The ownership chain, financing arrangements, and tax position of property held through a corporate structure differ from direct personal ownership, and the implications vary by emirate, property type, and the nationality and residency status of the beneficial owners. Legal and tax advice specific to the property, the jurisdiction, and the family's broader structure is essential before committing to an ownership model.
Families should resist the temptation to over-engineer. A structure with six layers of holding companies across four jurisdictions may look sophisticated on a PowerPoint slide, but if each layer adds cost, compliance burden, and administrative friction without a clear functional purpose, the structure is working against the family rather than for it. Every entity in the chain should exist for a defined reason that can be articulated clearly to a bank, a tax authority, or a court.
Governance and Contracts That Prevent Disasters
Governance is where UHNW family structures either hold together or fall apart, and the failures are almost always preventable. A shareholder agreement that clearly defines decision rights, profit distribution, exit mechanisms, dispute resolution, and the circumstances under which a family member can be removed as director or shareholder is not a luxury document; it is the structural backbone of the enterprise.
Manager authority and signing powers must be defined precisely. In many UAE entities, the manager or director has broad powers by default under the constitutional documents, including the ability to open and close bank accounts, enter into contracts of unlimited value, and bind the company to obligations without further approval. For a family holding company, this is usually inappropriate. The constitutional documents and board resolutions should specify signing authority limits, require dual approval for transactions above a defined threshold, and restrict certain actions, such as borrowing, guaranteeing obligations, or disposing of major assets, to require the approval of all shareholders or a supermajority.
UBO clarity must be maintained not just at formation but continuously. The UAE's beneficial ownership reporting requirements mean that the register of ultimate beneficial owners must be accurate and current. Changes in family circumstances, such as a death, divorce, or transfer of interests between family members, must be reflected promptly. Failure to update UBO records can result in penalties and, more practically, can cause banking relationships to be suspended when the bank's periodic review reveals a discrepancy between its records and the current reality.
Basic operational controls should be in place from day one. These include dual signatory requirements for all payments above a specified amount, a documented invoice approval process, standardised contract templates for recurring transaction types, a document retention policy that specifies how long records must be kept and where they are stored, and regular reconciliation of bank accounts against accounting records. For a family holding company, these controls are not bureaucratic overhead; they are the minimum standard that a bank, auditor, or regulator expects to see when they examine how the entity operates.
Exit, Restructure, or Shut Down Cleanly
Structures evolve. A family that set up a UAE holding company to consolidate three operating businesses may, within a few years, sell one business, acquire another, bring in a co-investor, or decide to migrate from a free zone to the mainland for operational reasons. Each of these changes has procedural, legal, tax, and banking implications that must be managed deliberately.
Adding partners or investors to an existing entity involves amending the constitutional documents, updating the license, notifying the relevant authority, revising the UBO register, and informing the bank. The bank notification is critical: bringing in a new shareholder without proactively notifying the bank risks triggering a compliance review that can freeze the account until the new party is fully vetted. Share transfers, whether between family members or to third parties, may involve transfer pricing considerations, potential tax implications in the seller's jurisdiction of tax residence, and approval requirements that vary by jurisdiction and entity type.
Migration between jurisdictions within the UAE, such as moving from a free zone to the mainland or from one free zone to another, is possible in some cases but is not a simple administrative transfer. It typically involves forming a new entity in the target jurisdiction, transferring assets and contracts, closing the old entity, and managing the banking transition. This process takes months and requires careful sequencing to avoid gaps in licensing, banking, or compliance.
Clean closure of a UAE entity is more involved than many families expect. The process generally requires settling all liabilities, cancelling visas and labour cards, deregistering from VAT and corporate tax where applicable, obtaining clearance from relevant authorities, and formally deregistering the license. The timeline can extend to several months, and regulatory fees may apply during the closure period. The worst outcome is an abandoned company: a license left to expire without proper deregistration. This can result in accumulating penalties, blacklisting that affects the individuals associated with the company, and complications for those individuals' ability to form or direct companies in the UAE in the future. Every entity formed should have a documented plan for how it will be closed if circumstances change, and the family should review the ongoing necessity of every entity in its structure at least annually.
How ALand and Dr Pooyan Ghamari Support UHNW Family Structures
The complexity described throughout this article is real, and UHNW families are right to question whether their existing advisory team fully understands the UAE's operational environment. Many international law firms and tax advisers can design a structure on paper but lack the ground-level knowledge of how that structure will interact with UAE banking compliance, free zone administration, immigration processing, and ongoing regulatory obligations. This is the gap that ALand, under the direction of Dr Pooyan Ghamari, is designed to fill.
ALand functions as a structuring and compliance consultancy, not as a license broker selling a product. The distinction matters. A broker's incentive is to close the formation as quickly as possible and move on. A consultancy's role is to ensure the structure is correct before formation begins, the banking approach is viable, the compliance infrastructure is in place from day one, and the family's ongoing obligations are managed systematically rather than reactively.
In practice, ALand's engagement with a UHNW family typically begins with jurisdiction and entity selection based on the family's actual business model, asset profile, banking needs, and long-term objectives. This is not a menu selection exercise; it requires understanding which free zone or mainland configuration supports the specific activities, which jurisdictions will be accepted by the family's target banks, and how the UAE entity fits into the family's broader international structure without creating substance, transfer pricing, or beneficial ownership problems.
Compliance preparation and bank readiness packaging is the next layer. ALand prepares the complete documentation file that banks require, working with the family and their international advisers to assemble source of wealth narratives, structure charts, certified documents, and transaction profiles that present a coherent and verifiable picture. Dr Ghamari's approach emphasises that banking onboarding is not an application form; it is a presentation of the business to a compliance audience, and it must be prepared with the same rigour as any other professional engagement.
Post-formation, ALand provides ongoing operational support: monitoring compliance deadlines, coordinating with accountants and auditors, managing license and visa renewals, supervising transaction documentation, and serving as the point of coordination between the family and its various UAE service providers. This is not passive administrative support; it is an active process control function that ensures the entity remains bankable, compliant, and structurally sound as regulations evolve and the family's circumstances change. For UHNW families managing multi-generational wealth, this continuity of oversight is not a convenience but a structural necessity.
Maintaining the Structure Across Generations
The ultimate test of a UAE holding structure is whether it survives the transition from the first generation to the second and beyond. This requires more than good documents; it requires a governance framework that anticipates succession, a compliance posture that can be maintained by people who did not build it, and a banking relationship that does not depend on the personal credibility of a single family member.
Succession planning within UAE structures should address several practical questions: who has authority to act if the primary UBO becomes incapacitated or dies; how are signing powers transferred; what happens to visa sponsorship for family members and staff; how is the bank notified and the account continuity maintained; and whether the constitutional documents and shareholder agreements contemplate the transfer of interests to the next generation without requiring the entire structure to be unwound and rebuilt.
DIFC and ADGM both offer foundation and trust frameworks that can sit above holding companies and provide a governance layer specifically designed for multi-generational wealth preservation. These frameworks allow families to separate economic rights from control rights, establish clear succession protocols, and create mechanisms for managing family disputes without disrupting the underlying commercial structure. Whether a foundation, a trust, or a carefully drafted shareholder agreement is the right tool depends on the family's size, complexity, cultural context, and the jurisdictions where beneficiaries are tax resident.
The families that do this well treat their UAE structure not as a one-time setup project but as a living system that requires annual review, periodic stress-testing, and continuous alignment with both regulatory changes and the family's evolving circumstances. Those that treat it as a formation-and-forget exercise discover, usually at the worst possible moment, that a structure without maintenance is a structure without protection.