One of the largest business changing environments at a global level can be experienced at the heart of UAE, Dubai. Diversion of the Emirate into specialized zones and segment has been constantly increasing so as to capture the mass market and grow on multiple sectors. Among all, the one that focuses on the financial front is Dubai International Finance Centre (DIFC). This centre has been targeted as a gateway to growth for financial firms embracing more than 1800+ organizations in its premises which targets the fastest markets namely, India, MENA, and Sub-Saharan Market. The legal and regulatory framework has been designed in such a way so that it binds and meets the needs of finance prevailing in different markets. On 14th Nov 2018, Highness Sheikh Mohammed bin Rashid Al Maktoum has enacted certain changes to the DIFC framework.
DIFC’s New Framework
The restructured framework has switched its way and rather than following a private or public company regime, it now focuses more on consultation and global benchmarking to encourage small business entities. Different arrangements have been organized to boost the complex business environment, mergers, schemes, debt restructuring to encourage collaborations across the financial institutions’ network. Another change has been initiated to the Companies Law by revamping the company’s operating regulations, with an aim to ease the business tasks.
Company Laws of DIFC
In the process, Companies Law, DIFC Law No. 5 of 2018 abolishes LLC and introduces different classifications of public and private companies which emphasize more on mergers to accommodate the growing market. Moving ahead, DIFC Law No.7 includes the enhancement of license regime which will provide an opportunity to the business entities to conduct businesses within or from the centre. Next, the DIFC Law No. 10 that deals with the real estate properties will make sure that the purchasers will get a clear picture and disclosure of what is being bought.
Introduction of UBO
A business entity is expected to understand with whom they are dealing on a daily basis. This saves them to avoid doing business with fraud parties. Ultimate Benefit Ownership (UBO) reveals the necessary information regarding a business entity that its stakeholders should be aware of. DIFC has taken a step forward to introduce UBO that requires the ownership information of all DIFC entities, maintaining their accuracy as well as provide accurate privacy protection.
Few further initiatives are to be taken for the betterment of the financial sector. Once the above-stated laws come into practice, Anti-Money Laundering (AML), as well as Counter-Terrorist Financing (CTF), will also be initiated that will uplift the Dubai’s financial sector.
Thus, we can see that the UAE Government is very much keen to develop the financial sector, giving the financial institutions a better future. If you are an investor and want to establish your business entity in the finance sector, this is the best time that you can build your business foundation. Establishing a company in Dubai becomes much easier if you have a guide who can help you with company formation services. We at Commitbiz are here to help you out. We are one of the best business consultants in Dubai dealing with the core pillars of a business entity. Our experts can help you with the establishment process, followed by Accounting, Tax, VAT, and Visa services etc. Contact us today to know more about it.