DIFC Free Zone, Dubai

DIFC Freezone

Uniwide collaborates with a wide range of free economic zones in the UAE, including the Dubai International Financial Centre (DIFC). In this section, you will find up-to-date information on the advantages and opportunities that DIFC offers for businesses.

Name and Website

Dubai International Financial Centre (DIFC); https://www.difc.ae/

General Information

DIFC has existed for more than twenty years as one of the leading financial centres of the UAE, Middle East, Africa, and South Asia. Over 4,300 companies operate in DIFC, and over 36,000 professionals work there.

DIFC has its own internationally recognized financial regulator and dispute resolution system. Corporate regulations in DIFC are based on English law.

Specialisation

International financial centre.

At the same time, companies from various industries are present in DIFC, including:

  • Financial companies (banking, capital markets, asset management, insurance and others);
  • Non-financial companies (holding companies, proprietary investment companies, consultancy and other professional service providers);
  • Fintech and innovations (technological companies and start-ups);
  • Retail and leisure (retail businesses, cafes and restaurants, arts).
Regulatory and Dispute Resolution Authorities
  • Dubai International Financial Centre Authority – a regulatory authority for all non-financial businesses.
  • Dubai Financial Services Authority, DFSA – a regulator for DIFC financial companies and a supervisory authority for AML/CFT purposes.
  • DIFC Courts – judicial bodies considering civil and commercial disputes based on English common law. 
Company Regulations
  • Companies Law 2018;
  • Limited Liability Partnership Law 2006;
  • Limited Partnership Law 2006.
Types of Licenses

Licenses for financial businesses are issued by the DFSA and include several categories depending on the activity and risk level.

There is also a wide range of licenses for non-financial activities.

Forms of Companies
  • Private company;
  • Public company;
  • Limited liability partnership;
  • Limited partnership.
Company Name

The name of a private company must include the words “Limited” or “Ltd.”, and the name of a public company must include the words “Public Limited Company” or “PLC.”

Share Capital

There is no minimum share capital for private companies. Public companies must have a share capital of at least USD 100,000.

Financial companies must have a base capital depending on their license category. For example, USD 10,000 for financial consulting, USD 500,000 for asset management, and USD 2,000,000 for credit provision.

Foreign shareholders may own 100% of the company’s shares.

Director and Secretary

A private company must have at least one director, and a public company must have at least two directors. Only individuals can be appointed directors.

A private company may, and a public company must have a secretary.

Physical Office

Companies must have a registered and physical office within the DIFC.

DIFC offers a wide range of office space options to suit the needs of different companies, from co-working to fully equipped offices of various sizes. Retail and event spaces and data centre services are also available.

Financial Statements and Audit

Companies in DIFC must keep accounting records and annually prepare and file audited accounts with the Registrar. The annual accounts are filed within six months after the end of the company’s financial year. 

Private companies may be exempt from auditing their accounts if their annual turnover in the current year (or the previous year for companies older than 1 year) was less than USD 5,000,000 and the number of shareholders was less than 20.

Taxation of Profits

Being a free zone, DIFC is subject to the UAE federal law on corporate taxation.

Companies must register for corporate tax and, if necessary, for VAT and submit tax returns.

A company registered in DIFC that meets the requirements for a “qualifying free zone person” can apply a 0% corporate tax rate on its “qualifying income”.

Annual Renewal

Starting from its second year of existence, the company annually pays free zone fees for license and immigration card renewal.

The company’s annual expenses also include office lease renewals, residence visas (as they expire), financial statements and audit expenses, and corporate service provider fees.

Re-domiciliation

Both inward and outward re-domiciliation is allowed.

A foreign company may continue as a free zone company in DIFC. Likewise, a company in DIFC may move to another jurisdiction subject to the approval of the Registrar.

Company Search

https://www.difc.ae/business/public-register

The information available includes a date of incorporation, a license validity period, a registered address, share capital, business activities, current directors, shareholders, secretaries and auditors.

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