COSTS OF BUSINESS SETUP
- Registration feeUSD 8,000
- LicenseUSD 12,000
- Office rent*Rent varies and depends on the size of leased space
- TOTALUSD 20,000 + rent
DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC) is a free zone that was conceived by the Dubai Government as the first UAE financial economic zone. Currently it is the only fully functional financial zone in the UAE, with Abu Dhabi Financial Centre picking up as of the year of 2016.
The key feature of DIFC is its legal system, which is based on English common law as compared to civil or commercial laws of the UAE. It is also important to mention that DIFC has its own court. The main currency within DIFC is a US dollar, so all DIFC management fees are accepted in USD.
Apart from payment of all registration fees, in order to operate a financial company in Dubai International Financial Centre, relevant approvals from Dubai Financial Services Authority (DFSA) are required.
DIFC offers various types of legal entities. Prospective registrants may seek to establish the following companies:
-a Public Company (PLC)
-a Private Company (LTD)
-a branch office of a pre-existing foreign company (Recognised Company)
-a party may also seek to transfer the incorporation of an existing company to DIFC from another jurisdiction (Continued Company)
-a Limited Liability Partnership (LLP)
-a branch of a pre-existing foreign Limited Liability Partnership (RLLP)
-a General Partnership (GP)
-a Branch of a pre-existing foreign general partnership (RP)
-a Limited Partnership (LP)
-a Branch of pre-existing limited partnership (RLP)
-a Non-Profit Incorporated Organisation (NPIO)
-a party may also seek to transfer an existing non-profit incorporated organization into DIFC from another jurisdiction (Continued NPIO)
-a Foundation
-A Branch of a pre-existing Foundation (Recognised Foundation)
-a party may also seek to transfer an existing foundation into DIFC from another jurisdiction (Continued Foundation)
The main type of business license in DIFC is service. However, there are various categories of license that can be acquired depending on a company activity. They include:
-DIFC Innovation License
-DIFC Crowdfunding License
-DIFC Financial License
-DIFC 3D License
-DIFC Investment Advisor License
-DIFC Payment Service Provider (PSP) License
Banks.
This involves accepting Deposits, managing an Unrestricted Profit-Sharing Account.
Market maker, provider of credit.
It involves dealing in Investments as Principal, providing credit.
Brokerage services.
It includes dealing in Investments as Matched Principal, dealing in Investments as Agent.
Custodian and Employee Money Purchase Schemes.
Under this category companies may provide such activities as Custody (only if for a Fund), acting as Trustee for a Fund, operating an Employee Money Purchase Scheme, acting as the Administrator of an Employee Money Purchase Scheme.
Asset Manager, Fund Manager, Issuer of Stored Value (Money Services).
It involves managing assets, managing a Collective Investment Fund, providing Custody, managing a PSIAr, providing Trust Services as a trustee of an express trust, providing Custody (other than for a Fund), Providing Money Services (Issuing Stored Value).
Money Service Businesses (other than Issuing Stored Value)
Advising and arranging activities.
Activities include arranging deals in Investments, arranging Credit and Advising on Credit, advising on Financial Products, arranging Custody, Insurance Intermediation, Insurance Management, operating an ATS, providing Fund Administration, providing Trust Services, operating a Crowdfunding Platform, arranging or Advising on Money Services.
Islamic Business
-100% Foreign Ownership
-convenient tax rates
-100% profit repatriation
-Opportunity to use UAE's Double Taxation Avoidance Agreement
-Independent Regulatory Framework
-A Common-Law Framework consistent with English Law
-Fully transparent operating environment
-State-of-the-art Business Infrastructure
-The ability to open branches anywhere in the world
-Access to an international Stock Exchange with a plethora of financial instruments for investment
-A dynamic and high-quality lifestyle, with top-of-the-line apartments, shopping outlets, transportation, and technology infrastructure
To set up a company in DIFC the following documents and procedures are required.
1. Getting Initial approval of company registration and entity name from the DIFC Authority.
2. Submitting an application to the DIFC Authority.
The application should include the following:
-a completed application form
-a business plan outlining your proposed business activities and financial projections
-details of a proposed company structure
-a proof of initial capital investment
-a copy of the proposed company’s Memorandum and Articles of Association
3. For Private Companies, no minimum share capital is required.
4. For Public Companies, a minimum share capital is USD 100,000.
DIFC offers 1.45 million sq. ft. of premium office spaces which are designed to suit various demands of the world's fastest-growing businesses, start-ups, technology innovators and accelerators.
DIFC office solutions include:
-Co-working spaces
-Serviced Offices
-Retail spaces
-Commercial offices
-Academy Venues
-Event and Congress spaces
Opening a company in Dubai International Financial Centre (DIFC) company entitles a shareholder for a residence visa after receiving a business license.
The residence permit is valid for 2 years for the shareholders and employees.
FOR PUBLIC COMPANIES. The minimum share capital requirement for public companies is USD 100,000. Share capital shall be formed by depositing funds into the company's bank account. NO SHARE CAPITAL FOR PRIVATE COMPANIES
1 year only, as in any other emirate, after which the license needs to be renewed.
Dubai International Financial Centre requires that all member companies submit annual audit reports.
Company’s license shall be renewed prior to its expiry date. Penalties apply for late renewal.
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