Dubai International Financial Centre (DIFC) is a financial hub in the Middle East. It is specially designed so that financial entrepreneurs like you can benefit from world-class monetary services like funding, customs duty relief, and no limitations on currency.
DIFC thrives on a network of reputed banks, firms, and renowned financial experts. Read the article to further understand details regarding the DIFC freezone.
Why do Fintech Companies choose DIFC?
The Dubai government is known for its pro-business policies attracting entrepreneurs from across the globe.
Some of the reasons why you should setup a company in the DIFC freezone are listed below -
- Competitive tax rates
- It is a strategic location
- DIFC is a global equity market
- Transparent operational setting
- Enjoy complete foreign ownership
- Access to advanced infrastructure
- Usage of any currency is permitted
- Complete retrieval of investment and profits
- It has a self-governing regulatory environment
- DIFC freezone taps into UAE's Double Taxation Avoidance Agreement
Business Structures Allowed in DIFC Freezone
Dubai government allows you to choose between certain business structures for company formation in DIFC. You can choose between a Limited Liability Company (LLC), branch office, Company Limited by Shares (LTD), representative office, general partnership, limited partnership, and Limited Liability Partnership (LLP).
Activities Permitted in Dubai International Financial Centre
When it comes to business setup in DIFC, you can engage in activities associated with finance and investment. Business activities permitted in the free zone are wealth management, stock market, Islamic finance, banking, brokering, private equity, and asset management, among others.
Documents Required to Start a Company in DIFC
The documents mentioned below need to be submitted to the relevant authorities in order to start your company in the DIFC freezone:
- Business plan
- Shareholders’ address proof
- Copy of trade name reservation
- Passport copy of all shareholders
- Memorandum of Association (MoA)
- Plan of internal audit and compliance
- Information about control and operating system
- Duly filled Anti-money Laundering (AML) application form
- Complete information about core members of the company.
Application Process for Company Formation in DIFC
You need to follow the steps mentioned below to establish your company in the Dubai International Financial Centre freezone.
- Submit the application form along with the necessary documents to secure pre-approval from the Dubai Financial Services Authority (DFSA).
- Upon approval from DFSA, select a suitable business structure for your company.
- Pick a name for your business and ensure that it abides by UAE’s naming regulations.
- Submit the company’s name to the authorities and secure approval from the DIFC Registrar of Companies.
- Find a suitable location in the DIFC freezone for business setup. Consider factors such as facilities offered, utilities, and parking space, among others.
- Avail a financial license from the authorities by paying the requisite fees.
- You need to open a free zone company bank account to handle your company’s financial transactions.
If you are considering company formation in DIFC, Commitbiz can help by taking care of all the legalities. Our experts have over 16+ years of experience in business incorporation across the UAE and would love to participate in your entrepreneurial journey. Book a free call with our experts today!
Can companies in the DIFC Free Zone operate outside the UAE?
Yes, companies registered in the DIFC Free Zone can conduct business both within the UAE and internationally. The free zone's strategic location provides easy access to markets in the Middle East, Africa, Asia, and beyond.
What legal system does the DIFC Free Zone operate under?
The DIFC has its own independent legal system based on English Common Law, separate from the UAE's legal system.
What support services are available for businesses in the DIFC Free Zone?
DIFC Free Zone provides comprehensive support services, including legal and regulatory assistance, networking opportunities, access to funding and investment, and a range of business development resources to help you thrive in the region.