In the heart of The Middle East, Africa and Asia (MEASA) markets, Dubai is undoubtedly one of the most geographically lucrative spaces in the world for setting up companies and corroborating business networks. Established in 2004, Dubai International Financial Centre (DIFC) hosts a number of financial services companies, high-end retail outlets as well as other businesses. It stands out by being a free zone, i.e. a duty free zone and by offering a 100% foreign ownership as opposed to the other parts of Dubai, where ownership is limited to part foreign ownership. There is no tax on incomes and profits for a period of 40 years.
The advantages of setting up a firm in the DIFC are endless. Apart from being a geographic epicentre, the DIFC is governed by an independent legal authority, i.e. the Dubai Financial Services Authority. DFSA is a highly reliable regulator that exercises jurisdiction over all finance service firms in the DIFC unlike the rest of the legal system in the UAE. There are no restrictions on hiring foreign talent. With a thriving ecosystem of investment funds, wealth consultancy firms, law firms and firms rendering other professional services, the DIFC practically lives the robustness of high-value deals and opportunities.
In order to understand how to be a part of this system, let us first learn the license categories under which the firms can be set up.
| Category | Nature of the entity | Base Capital Eligibility |
| 1 | Banks | US $ 10M |
| 2 | Market Maker | US $ 2M |
| 3A | Brokerage | US $ 500,000 |
| 3B | Custodian and Employee Money Purchase Schemes | US $ 4M |
| 3C | Asset Manager, Fund Manager, Issuer of Stored Value | US $ 500,000 |
| 3D | Money Service Businesses | US $ 200,000 |
| 4 | Advising and arranging activities (non-discretionary) | US $ 10,000 |
| 5 | Islamic Business | US $ 10M |
*These licenses are also attached with other pre-requisites which are to be separately read
DIFC is already a home to over 4000 companies now. The procedure of registering a company into the DIFC depends on the nature of the entity, i.e. whether it is an LLC, LLP, company, etc. and the type of business as well. Secondly, to operate within the Dubai International Financial Centre (DIFC), a company is required to have a minimum of one shareholder and a minimum of two directors. The company must possess a valid commercial license to carry out its operations effectively. More or less, following is the list of documents required for registration:
Articles of Association executed by the founders
The prescribed application form
Business plan
Audited accounts of the shareholders up until three years
Other details of the shareholders and directors
For entities engaged in financial activities, there are additional compliances and documents which need to be tendered. To engage with any expert or consultant for this purpose is highly recommended.
With an unparalleled community for business mammoths, DIFC is what an entrepreneurial dream looks like.
