DIFC Company Formation and Registration

difc company formation

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DIFC Business Setup

The Dubai International Financial Centre (DIFC) is a prominent free zone strategically located in the heart of Dubai, serving as a leading global financial hub. Established to provide a world-class business environment, DIFC has become a key destination for companies seeking to establish a presence in the Middle East. As of 2024, DIFC boasts over 6,000 active businesses, underscoring its significance as a thriving center for commerce and finance.

Primarily designated for financial firms, DIFC offers a robust framework that supports a wide range of financial services, including banking, asset management, insurance, and capital markets. The center is home to a diverse array of international and regional financial institutions, making it a critical player in the global financial landscape. 

However, DIFC is not limited to just financial firms; it also caters to a variety of non-financial businesses, including those in the retail and leisure sectors, as well as fintech and innovation companies. This inclusivity allows DIFC to foster a dynamic ecosystem where traditional finance intersects with innovative technology and entrepreneurial ventures.

One of the distinguishing features of DIFC is its comprehensive legal and regulatory framework, which is designed to promote transparency, governance, and investor confidence. 

The DIFC Authority oversees the regulatory environment, ensuring that businesses operate within a secure and structured setting. This environment is further enhanced by a host of amenities, including state-of-the-art office spaces, dining options, and leisure facilities, creating a vibrant community for professionals.

Additionally, DIFC hosts numerous events, conferences, and workshops throughout the year, providing networking opportunities and fostering collaboration among industry leaders and innovators. The center’s strategic location, coupled with its world-class infrastructure and business-friendly policies, makes it an attractive destination for companies looking to expand their operations in the region.

On the whole, the Dubai International Financial Centre stands out as a premier free zone that not only serves the financial sector but also welcomes a diverse range of businesses. With its growing number of active enterprises, comprehensive support services, and commitment to fostering innovation, DIFC is well-positioned to remain a pivotal player in the global financial arena for years to come.

Ajman Free Zone Business Setup Advantages

Full Foreign Ownership

International businesses do not require a local Emirati sponsor to be a partner to operate in DIFC, maintaining 100% ownership.

Tax Incentives

Businesses are exempted from the corporate tax observed in the mainland unless they do not comply with the DIFC criteria.

Double Taxation Treaties

The UAE has taxation agreements with over 135 countries that prevent businesses from paying tax on the same income twice

Capital and Profit Repatriation

Freedom to repatriate capital and profits without any restrictions.

Independent Regulatory Authority

Operating under a regulatory body - Dubai Financial Services Authority (DFSA) dedicated to the free zone with customized laws for each industry.

English Common Law

The legal framework is based on English Common Law widely recognized and trusted by international businesses.

Transparent Environment

A transparent environment that adheres to global financial standards.

International Stock Exchange

Access to an international stock exchange with primary and secondary listings for debt and equity instruments.

Licenses Available in DIFC

Financial Services License: For banks, asset management, insurance, and investment firms.
Non-Financial Services License: For professional services such as legal, consulting, accounting, and more.
Retail License: For operating retail businesses within DIFC.
Innovation License: For tech and startup companies, including FinTech and digital businesses.
Prescribed Company License: For holding, family offices, or Special Purpose Vehicles (SPV).
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Business Licenses in Difc

DIFC Business Setup Process

Timeline: 4 to 8 weeks

01 Initial Consultation

Engage with DIFC representatives or a business consultant to discuss your business requirements, industry focus, and licensing needs.

Takes 1 to 2 days

02  Submit Application

Complete and submit the online application through the DIFC portal, providing essential details such as business name, type, ownership structure, and activities.

Takes 1 day

03   Name Reservation

DIFC reviews the application and reserves the company name, ensuring it complies with their naming conventions.

Takes 1 day

04 Pre-Approval

DIFC conducts due diligence on the company and its shareholders, this includes background checks and assessments of the proposed business activities.

Takes 3 to 5 days

05 Document Submission

Gather and submit all required documentation.

Takes 3 to 5 days

06 Payment of Fees 

Pay the necessary registration and licensing fees associated with establishing the business in DIFC.

Takes 1 day

07  License Issuance 

Once all documents are approved and fees are paid, DIFC issues the business license, allowing operations to commence.

Takes 3 to 5 days

08 Office Space Setup

Secure office space within DIFC and sign a lease agreement. 

Takes 3 to 10 days

09Visa Processing 

Apply for visas for shareholders and employees. 

Takes 10 to 15 days

10Bank Account Opening

Open a corporate bank account in Dubai after obtaining the business license. 

Takes 1 to 2 weeks

Documents Required in DIFC

Required documents vary based on the legal structure of the business: Private Company, Public Company, Prescribed Company, Branch of a Foreign Company and Limited Liability Partnership.

Entity Type Required Documents
Private Company (Ltd) Application Form
Memorandum and Articles of Association
Passport copies of shareholders and directors
Proof of address for shareholders and directors
Business Plan
Regulatory approvals (if applicable)
Public Company (PLC) Application Form
Memorandum and Articles of Association
Passport copies of shareholders and director
Proof of address for shareholders and directors
Business Plan
Financial statements
Regulatory approvals (if applicable)
Branch of a Foreign Company Application form
Certificate of incorporation of the parent company
Memorandum and Articles of Association of the parent company
Passport copies of local managers
Proof of address for local managers
Board resolution to establish a branch in DIFC
Regulatory approvals (if applicable)
Limited Liability Partnership (LLP) Application Form
Partnership Agreement
Passport copies of partners
Proof of address for partners
Business Plan
Regulatory approvals (if applicable)
Prescribed Company Application Form
Memorandum and Articles of Association
Passport copies of shareholders and directors
Proof of address for shareholders and directors
Purpose statement
Regulatory approvals (if applicable)

License Cost in DIFC

The cost of setting up a business in DIFC varies depending on the type of license you require, the starting price of all licenses is AED 73,460 ($20,000).

In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.

*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.

DIFC Company Formation License Requirement

Physical Presence: The entity must have a physical presence in DIFC, including obtaining a flexible desk in co-working spaces.
Trading Restrictions: The entity is restricted from engaging in the trading or selling of physical products, such as importing/exporting goods, either directly or through e-commerce channels.
Technological Solution: The entity is required to offer a technological solution, such as a software solution, AI, Web3, Technology R&D, or Blockchain.
Non-Regulated Status: The entity must be non-regulated and is prohibited from offering any financial services, including financial advisory or arranging money services.
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List of Business Activities in DIFC

01
Computer Consultancies
02
Data Classification & Analysis Services
03
Cyber security consultation
04
Technology Research & Development
05
Web Designing
06
Portal
07
Public Networking Services
08
Software House
09
Education Technologies Research & Development
10
Education & Training Computer Software
11
Information Technology Consultants
12
Network Consultancies
13
Internet Content Provider
14
Electronic Chips Programming
15
Internet Consultancy

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