Dubai has long been recognised as a global business hub, offering a growing and thriving environment for entrepreneurs. The Emirates’ rapid growth and diversification across various sectors have helped it become a key financial center, particularly in the Middle East, North Africa, and South Asia regions.
As one of the world's most advanced financial ecosystems, Dubai is home to numerous free zones, each catering to specific industries. Among them, the Dubai International Financial Centre (DIFC) stands out as a premier financial hub attracting international businesses from a range of sectors. Are you planning to start a business in the financial industry in Dubai? Continue reading to find out more details about the Dubai International Financial Centre free zone.
Overview of the DIFC
The Dubai International Financial Centre free zone is the Middle East's key financial hub. Operating under its own independent legal and regulatory framework, DIFC provides international financial institutions and businesses with a secure, stable environment. The free zone houses major global banks, asset management firms, insurance companies, fintech startups, and professional service providers. All these companies and organisations are regulated by the Dubai Financial Services Authority (DFSA).
Why Choose Dubai International Financial Centre Free Zone?
The Dubai International Financial Centre free zone provides businesses with numerous competitive advantages in the financial sector. This makes it an ideal location for businesses to establish and grow their financial operations. Let us have a look at some of the popular reasons:
- Strategic Location - DIFC free zone is positioned between major financial centers in Europe and Asia. Businesses in the region can easily access both Eastern and Western markets.
- Independent Legal System - The free zone has an independent system based on English Common Law. This provides certainty and familiarity for international businesses.
- Complete Foreign Ownership - Businesses are allowed to have complete control of their business without the requirement of a local partnership.
- Taxes -Companies in DIFC can benefit from competitive tax rates such as 9 percent corporate tax, zero income tax, and exemption on withholding tax or capital gains tax for 50 years.
- Advanced Infrastructure - The Dubai International Financial Centre free zone offers state-of-the-art office spaces, high-speed connectivity, and modern facilities.
- Business Ecosystem - Companies can access a diverse community of financial institutions, professional services, and talented workforce.
Steps for Company Formation in DIFC
Establishing your presence in the Dubai International Financial Centre free zone involves a straightforward process designed to launch your business without any hassle. The following are the generic steps required to start a business in DIFC:
Step 1 - Pick a legal structure which you will use to incorporate your business in DIFC. Some of the options include alimited liability company (LLC), a representative office, a branch office in Dubai, and more.
Step 2 - Decide the business activities that your company setup in DIFC will engage in.
Step 3 - Choose a name for your business while following the UAE’s naming guidelines. Next, apply for trade name reservation with the designated authorities.
Step 4 - Apply for pre-approval from the DFSA. During this procedure, you will have to submit certain company-related documents.
Step 5 - Apply for company registration by submitting an application form and the necessary documents. pay the requisite fees.
Step 6- Based on your business activity, you will have to apply for the relevant trade license from the free zone authorities. Lastly, pay the fees to secure this legal document.
Documents Required for a DIFC Free Zone Business Setup
To establish your entity in the Dubai International Financial Centre free zone, you will need to prepare and submit certain key documents. It is important to note that all documents in foreign languages must be legally translated into English and notarised before submission. Check out the documentation requirements below:
- A business plan outlining your operations, projections, and strategy
- Passport copies of all shareholders
- Bank reference letters
- Audited financial statements (if applicable)
- Articles of Association (AoA)
- Memorandum of Association (MoA)
Business Activities Allowed in the DIFC Free Zone
DIFC offers licensing for a wide range of business activities across the financial and professional services spectrum:
- Banking services
- Trading and brokerage services for securities and commodities
- Wealth management
- Insurance & reinsurance
- FinTech Innovation
- Professional services
- Fund management
- Islamic finance
How Can Commitbiz Help?
Commitbiz offers comprehensive support for your DIFC business setup journey, combining expert guidance with hands-on assistance throughout the entire process. Our experienced team provides strategic consultation on choosing the right business structures, documentation, regulatory compliance, visa processing, opening a corporate bank account in Dubai, and more.
With Commitbiz as your trusted partner, you can navigate the complexities of establishing your presence in one of the world's most prestigious financial centers while allowing you to focus on your core business. Contact us to start your business in the Dubai International Financial Centre free zone!
Is there a minimum capital requirement to set up a business in DIFC?
The minimum capital requirement for setting up a business in DIFC depends on the type of business activity. For financial firms, the minimum capital is determined by the Dubai Financial Services Authority (DFSA), based on the type of services provided.
What are the office space requirements in the Dubai International Financial Centre free zone?
Companies in DIFC must lease office space within the DIFC itself. The office space must meet the minimum requirements as set by the DIFC Authority.
Can a DIFC company open a bank account in Dubai?
Yes, businesses in DIFC can open a corporate bank account in Dubai.
Can I hire foreign employees for my business setup in DIFC?
Yes, DIFC-based companies can hire foreign employees. However, businesses must follow the regulations set by the Ministry of Human Resources and Emiratisation (MOHRE).
What are the costs involved in setting up a business in DIFC?
The cost of starting a business in DIFC varies on plenty of factors. Some of them include registration fees, office rental, licensing fees, and other administrative expenses.