DIFC Introduces Initiative to Enhance Succession Planning and Longevity of Family Businesses
In an innovative initiative, the DIFC Family Wealth Centre, in partnership with MIT Sloan Executive Education and the DIFC Academy, is launching the premier ‘Sustaining Family Business Success’ high educational program in Dubai.
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This program aims to equip family businesses within the Dubai International Financial Centre (DIFC) and the broader region with the adequate education on maintaining success across generations.
The innovative MIT Sloan Executive Education program provides family businesses preparing for expansion in Dubai and elsewhere with new insights and perspectives. It covers the exploration of opportunities, challenges, trends, and strategies essential for the management and leadership of family businesses and broader family enterprises through multiple generations. Participants of the course will receive a Certificate of Completion from the MIT Sloan School of Management.
John Davis, the Faculty Director at MIT Sloan, highlighted the need for family businesses to adapt to the rapidly changing global environment by adopting a future-focused and flexible approach to stewardship, emphasizing the creation of diverse values aligned with family principles as the outline for success in today’s world.
Christian Kunz, the Chief Strategy, Innovation & Ventures Officer at DIFC Authority, emphasized on the importance of the Dubai and DIFC’s business ecosystem, strategic position, and commitment to innovation as key factors making it the perfect environment for family businesses. He expressed enthusiasm about providing members of the DIFC Family Wealth Centre and family businesses access to cutting-edge education on sustaining success, enabling them to upscale and continue their growth locally and internationally.
This announcement is part of a series of measures by the Dubai International Financial Centre (DIFC) to support the ongoing innovation, growth, and succession planning of family businesses confidently. The DIFC Family Wealth Centre, launched in March 2023, represents a world-first initiative, offering comprehensive services to family businesses at a crucial time when an estimated AED 3.67 trillion (USD 1 trillion) in assets is expected to transfer to the next generation in the Middle East over the next decade.
Additionally, the DIFC introduced the Family Arrangements Regulations in February 2023, offering tailored support for families to preserve their legacies across generations and geographies. These regulations complement the UAE Family Business Law, fostering a supportive environment for family businesses.
Structured on six foundational pillars, future vision, managing turbulence, governance, talent, succession, and multigenerational success, the initiative is in line with the UAE Government’s dedication to bolstering family businesses, vital for the nation’s economic growth.
With only 20% of family businesses in the Middle East reaching the third generation, providing next-generation leaders with top-tier education is essential for their enduring success.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Compliance with these deadlines is crucial to avoid administrative penalties.
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The UAE’s Federal Tax Authority (FTA) is urging Corporate Taxpayers to adhere to submission deadlines to avoid fines. Specifically, Resident Juridical Persons with licenses issued in May (regardless of the year) must submit their Corporate Tax registration applications by July 31, 2024, in line with Federal Tax Authority Decision No. 3 of 2024.
This decision aligns with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, effective from March 1, 2024. The FTA stresses the importance of meeting these registration deadlines, which have been communicated through various media channels and direct outreach to registered company owners in the UAE.
Utilizing the EmaraTax Platform
Compliance with these deadlines is crucial to avoid administrative penalties. The deadlines apply to both juridical and natural persons, including Resident and Non-Resident Persons in the UAE. Detailed information on these deadlines and other relevant issuances can be found on the FTA’s official website.
According to the FTA’s Public Clarification, Resident Juridical Persons established or recognized before March 1, 2024, must submit their tax registration applications based on the month their license was issued. Those with expired licenses as of March 1, 2024, should submit their applications based on the original issuance month. For those holding multiple licenses, the earliest issuance date applies.
Administrative penalties for corporate tax violations have been in effect since August 1, 2023. To facilitate the registration process, taxpayers must use the “EmaraTax” digital platform, available 24/7, or seek assistance from accredited tax agents and government service centers.
The FTA has also emphasized the importance of providing accurate information and submitting updated supporting documents correctly with the electronic registration application, noting that registering for Corporate Tax for a juridical person requires uploading various documents, including the commercial license, the Emirates ID card, the passport of the authorized signatory, and proof of authorization for the authorized signatory.
A comprehensive video explaining the registration process through the “EmaraTax” platform is available on the FTA’s website. This platform, designed according to international best practices, aims to streamline the registration journey, submission of periodic returns, and payment of due taxes for all UAE taxpayers.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
