DIFC – A FINANCIAL CENTRIC FREE ZONE

Dubai International Financial Centre (DIFC) is a dedicated economic zone that caters specifically to financial services companies. DIFC provides a state-of-the-art infrastructure for businesses operating in the finance, investment, banking, and fintech sectors.

DIFC operates under a robust regulatory body, a common law framework, and government support. It provides an ideal platform for fostering companies specializing in financial and business services. Additionally, DIFC offers a prime working location due to its advantageous time zone, effectively bridging the gap between international financial centers such as London, New York, Hong Kong, and Tokyo. Investors can leverage this opportunity by establishing their base in Dubai, allowing them to closely monitor major financial markets.

1. Top-Class Regulatory Environment

The Dubai Financial Services Authority (DFSA) serves as the autonomous, risk-based regulator for businesses operating within the DIFC. It is responsible for granting licenses and overseeing the operations of banking and financial institutions in this jurisdiction. The DFSA adheres to globally recognized regulatory policies, aligning itself with the robust financial regulatory frameworks of major financial centers such as London and New York.

2. Robust Legal Framework

DIFC boasts an in-house legislative system aligned with the principles of English Common Law. Responsible for the autonomous administration and enforcement of justice within DIFC, the DIFC Courts handle all civil and commercial disputes arising in the region.

BUSINESS BENEFITS FROM DIFC BUSINESS SETUP

•   100% Foreign Ownership
•   0% tax rate on income and profits
•   Leverage UAEs Double Taxation Avoidance Agreement
•   100% profit repatriation
•   Independent Regulatory Environment
•   Common-Law Framework consistent with the English Law
•   Fully transparent operating environment complying to world-class compliance and regulatory process
•   Hub & Spoke Model – Open branches anywhere in the world
•   An international Stock Exchange with a host of financial instruments for investment
•   Exceptional talent pool available in Dubai
•   Elevated lifestyle, best-in-class apartments, shopping outlets, transportation, technology infrastructure

TYPES OF LEGAL ENTITIES IN DIFC

DIFC serves as the central hub for financial and fintech companies, offering a specialized economic zone that caters specifically to businesses engaged in financial and investment-related activities. Within DIFC, various legal business forms are available to accommodate the diverse needs of companies operating in this dynamic sector.

•   A company limited by shares
•   Limited liability company
•   Branch Office
•   Partnership

BUSINESS LICENSE TYPES AVAILABLE

Managed License – Business activities that are linked with Finance and Banking are maintained by a financial regulatory system.

Non-Managed License – The Non-Managed License in DIFC is those ones that are not linked with Finance or Banking.

E.g. Retail spaces. Salons, Tailors, Wellness exercise, Cafes & restaurants.

PROCEDURE FOR BUSINESS SETUP IN DIFC

•   Fill up the application form
•   After initial approval, proceed to the registration process
•   Submit all the documents with proof of minimum share capital of the business
•   Open the bank account for the company
•   Once the documents are reviewed, the certification of incorporation will be issued.

DOCUMENTS REQUIRED TO SET UP A BUSINESS IN DIFC

•   Proof of trade name reservation
•   Proof of initial approval of business activities
•   Passport copies of the shareholder
•   Passport copy & Profile of the manager
•   Personal profile information sheet for each shareholder & manager
•   A detailed plan of business activity
•   Details of the organizational structure, IT Support system, Operations process
•   Information on the organization’s internal audit and compliance system
•   Anti-money laundering procedures
•   Detailed information on key shareholders and employees
•   Property Details of shareholders to check the propriety to conduct the business
•   Lease agreement contract stating the physical address and office location
•   Any third party approval for activities if applicable

SETTING UP AN ENTITY IN DIFC – STEPS TO FOLLOW

To establish a company in the Dubai International Financial Center (DIFC), follow these 5 simple steps. Setting up your company in DIFC is a breeze, with streamlined processes and minimal documentation requirements for investors.

1. SUBMIT THE INTEREST

Get in touch with PRO Consultancy, a highly acclaimed Registered Agent for DIFC Free Zone. Our team of expert Business Consultants will provide all the necessary details to set up your company as part of the initial onboarding process. You’ll receive a comprehensive proposal outlining various business options, a breakdown of setup costs, visa expenses for investors/employees, and all other related expenses associated with establishing your company in DIFC.

PRO Consultancy offers comprehensive assistance in registering a company for investors in the DIFC Free Zone. Our dedicated team will guide you through the entire process, from selecting the ideal business activity to obtaining the Investor Visa and corporate bank account. Count on us to handle all assignments proactively, ensuring a seamless experience.

2. APPLY FOR DFSA AUTHORIZATION

To establish a company in the DIFC Free Zone, investors need to seek pre-approval from the DFSA. Aurion will take charge of coordinating with the DFSA to obtain approval for the financial services company. The DFSA will require submission of a business plan for review, along with the application form. Once approval is granted, the DIFC Free Zone Authority will process the Financial Services license.

3. REGISTERED ADDRESS

To secure the office space, it is crucial to obtain the tenancy contract based on the Registered Address. The Lease Agreement should be registered with the appropriate DIFC Authority, depending on the ownership nature of the office space. If purchasing an office space in DIFC, the owner or company must fully own the space and apply for the ‘Self Occupy’ Certificate. Lease registration is mandatory for all entities leasing space from third-party developers in the DIFC area.

4. REGISTER WITH DIFC

Once the financial services receive initial approval from DFSA, proceed with completing the lease agreement and continue with the remaining steps to register the company with the DIFC Registrar of Companies. The fee for this process will vary significantly based on the chosen legal structure, nature of business activities, and office space requirements.

5. AUTHORIZATION BY DFSA

The DFSA will review detailed information about the company, including shareholders and the business plan, to authorize the business license. Once authorized, the DIFC Licensing Authority will issue the Financial Services License. At this stage, the company can also apply for an establishment card, which is necessary for processing employee visas in the future.

FINTECH AND INNOVATION LICENSE – DUBAI INTERNATIONAL FINANCIAL CENTRE AUTHORITY

License & Registration Fees as per DIFCA laws and regulations:

LEASE TYPES

KEY FEATURES

• Experience cost-effective workspaces with state-of-the-art infrastructure,
• Benefit from a diverse financial ecosystem supported by DIFC,
• Leverage the power of DIFC FinTech Hive, the accelerator for FinTech in DIFC,
• Connect with the dynamic DIFC Innovation Hub, a thriving hub of innovation and creativity,
• No need to worry about minimum share capital requirement,
• Conveniently located at Gate Avenue, Zone D.

Data Protection – In this section, investors must specify whether the entity will be processing personal data or not. In the case of processing personal data, they must specify the manner of processing personal data. This section also requires the details of the Data Controller appointed by the proposed entity.

REQUIRED DOCUMENTS:

1. To proceed with the application, please provide the following documents and information:

1. Clear copy of Passport

2. Recent Photograph

3. Signature sample of Shareholder/s

4. Three proposed company names in order of priority

5. Business Plan

6. Bank Statement for the past three months

Thank you for your cooperation.

HOW PRO Consultancy CAN ASSIST YOU?

Pro Consultancy Business Consultants can provide expert assistance in establishing your financial services or allied services company in DIFC. Given the focus of companies in DIFC on finance and investment, a comprehensive evaluation of shareholder profile, business activity, and business model by the relevant authorities is imperative. Rest assured, our team is equipped to guide you through this process seamlessly.

Our team of legal and business experts will guide you every step of the way in the process of forming a company in DIFC. If you’re interested in learning more about the Company Formation process in DIFC, don’t hesitate to reach out to our knowledgeable consultants today!