Starting a business in Dubai, specifically in the Dubai International Financial Centre (DIFC), involves a well-defined process that caters to a range of business and financial services. As a globally recognized free zone and an excellent business hub, DIFC offers numerous benefits to companies planning to establish their presence in this cosmopolitan city.
Strategically located between the East and West, DIFC bridges the time-zone gap for a global financial centre between the leading financial centres of London and New York in the West and Hong Kong and Tokyo in the East. The quality and range of DIFC’s independent regulation, common law framework, supportive infrastructure, and its tax-friendly regime make it an ideal location for businesses to reach into and out of the emerging markets of the region.
At the core of DIFC’s model is the Dubai Financial Services Authority (DFSA), an independent risk-based regulator that grants licenses and regulates the activities of all banking and financial institutions in DIFC. The DFSA was created using a principle-based primary legislation model, closely resembling the ones used in London and New York, providing financial companies with the confidence that they have a sound, stable, secure, and growth-oriented platform for their business.
DIFC stands out due to its unique legal framework consistent with English Common law. It has its own set of civil and commercial laws and regulations, a complete code of law governing financial services regulation, and an independent judicial system. The DIFC Courts are responsible for the independent administration and enforcement of justice in DIFC.
One of the key advantages of setting up a business in DIFC is the provision of 100% ownership for subsidiaries and incorporated entities. There are no restrictions or constraints on capital or profit flows, and no currency exchange controls in the US-dollar denominated jurisdiction.
DIFC provides a platform for businesses to centralize the regional and global management of operations, and their rollout to branches around the world. It also provides a 40-year guarantee of zero taxes on corporate income and profits, bolstered by the UAE’s extensive network of double taxation avoidance treaties with regulators and central banks.
To establish and conduct business in DIFC, entities must apply for incorporation or registration. This involves submitting an application to the Registrar of Companies (ROC), who will advise, receive, review, and process all applications. The ROC provides a detailed checklist of required forms and supporting documents to be submitted. The ROC then issues a Commercial License along with a certificate of incorporation, registration, or continuation.
Starting a business in DIFC involves understanding its unique features, its independent regulation, and legal framework. It requires proper planning and a comprehensive understanding of the business registration and licensing process. With its strategic location, robust infrastructure, and business-friendly policies, DIFC offers a lucrative opportunity for businesses looking to expand in the Middle East and beyond.
Dubai International Financial Centre (DIFC):
DIFC is an onshore financial center that offers a secure and efficient platform for businesses and financial institutions. It provides a range of benefits for businesses such as:
- An independent, risk-based regulator, the Dubai Financial Services Authority (DFSA), which grants licenses and regulates the activities of all banking and financial institutions in DIFC.
- A unique legal framework consistent with English Common law.
- 100% ownership for subsidiaries and incorporated entities.
- No restriction on capital repatriation.
- A hub and spoke model for centralizing regional and global management of operations.
- Tax efficiencies, including a 40-year guarantee of zero taxes on corporate income and profits, enhanced by the UAE’s wide network of double taxation avoidance treaties with regulators and central banks.
To establish a business in DIFC, entities must apply for incorporation or registration of a DIFC entity by submitting their application to the Registrar of Companies (ROC).
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