Dubai International Financial Free Zone Authority

Dubai International Free Zone (DIFC) is centrally located in Dubai, adjacent to the Dubai World Trade Center (DWTC). It is a Financial Free Zone regulated under the Dubai Financial Regulatory Authority.

The Dubai International Financial Centre (DIFC) is a leading financial free zone hub established in 2004 as a special economic zone in Dubai. It is a strategic centre for companies operating in the Middle East, Africa, and South Asia (MEASA) markets.

Key Features of DIFC

Regulatory Framework: DIFC is regulated by the Dubai Financial Services Authority (DFSA), an independent regulator exclusive to the zone

It functions under a common law framework and conducts business in English

Legal System: DIFC has its own court system, DIFC Courts, which is separate from the UAE’s federal legal system

This provides a unique legal environment tailored to international financial operations.

Tax Benefits: DIFC offers a 50-year guarantee of zero taxes on corporate income and profits

This is complemented by the UAE’s network of double taxation treaties.

Ownership Structure: As a free zone, DIFC allows companies 100% foreign ownership without the need for a local partner

DIFC Authority

The principal governing body of the DIFC is the DIFC Authority

Its responsibilities include:

1 Overseeing strategic development

2 Managing operational aspects

3 Planning for the Dubai International Financial Centre

4 Tally ERP

The DIFC Authority is committed to creating value for its stakeholders and ensuring the centre’s growth and success.

Business Activities

DIFC caters primarily to institutional investors, focusing on sectors such as:

Banking and Brokerage
Capital markets
Wealth management
Reinsurance and captives
Islamic finance
Business processing operations
Ancillary services

Growth and Success

DIFC has seen significant growth, with a 19% annual increase in non-financial firms reported in 2022

The total number of international companies, family businesses, and corporate service providers in DIFC now exceeds 3,000

The Dubai International Financial Centre Free Zone Authority has created a world-class financial hub attracting global businesses and talent. Its unique regulatory framework, tax benefits, and strategic location have positioned it as a key player in the international economic landscape.

It allows licenses for banks, capital markets, technology, financial service sectors, and related service sector companies to operate from here.

The company setup process in the Dubai International Financial Centre (DIFC) involves several key steps:

Initial Consultation and Planning

Meet with DIFC authorities to discuss your business plan and intended activities

Submit a Letter of Intent expressing interest in setting up in DIFC

Prepare a comprehensive Regulatory Business Plan detailing your business model, revenue streams, governance, and risk management

Application and Approval

Submit a formal application to the Dubai Financial Services Authority (DFSA) along with required documentation
- Regulatory Business Plan
- Financial model
- Policies and procedures manuals
- Details on shareholders, directors, and senior management
- IRAP/ICAAP reports (if applicable)
- Pay the DFSA application fee
- Undergo a detailed review process by the DFSA
- Receive an In-Principal Approval (IPA) if the application is satisfactory

Company Registration

Register the legal entity with the DIFC Registrar of Companies (ROC)
Choose an appropriate legal structure (e.g. LLC, LTD, Branch)
Submit required documents:
- Business plan
- Shareholders’ documents and resolutions, wherever applicable
- Memorandum and articles of association
- Proof of capital investment
Obtain a provisional Certificate of Incorporation

Operational Setup

Secure office space within DIFC
Open a local bank account and deposit the required share capital
Apply for and obtain the necessary commercial license

Final Approval

Provide evidence of fulfilling IPA conditions to the DFSA
Receive the Financial Services Permission, allowing you to commence business operations

The process typically takes 6-8 months for regulated and 6-8 weeks for non-regulated activities.

It’s important to note that the specific requirements and timeline may vary depending on the nature of your business and the type of license required.

The cost of setting up a company in the Dubai International Financial Centre (DIFC) can vary depending on several factors, but here’s a breakdown of the main expenses:

Registration and Licensing Fees

Company Registration

Name reservation: $800

Incorporation application for a Private Company Limited by Shares: $8,000

Commercial License

Annual fee: $12,000

Data Protection

Registration: $500
Annual renewal: $250

Office Space

DIFC requires all registered entities to lease a physical office. Options include:

DIFC Business Centre: Starting from $27,000 for a one-desk office
DIFC Fitted Offices: From Approx $55 per square foot
Other buildings within DIFC: Starting from $32,000 per annum

Visa Costs

Establishment Card Application: $630
PSA Deposit: $682
Visas (per visa): Starting from $1,500

Additional Costs for Regulated Firms

For companies requiring regulation by the Dubai Financial Services Authority (DFSA):

Application fee: Starts from $15,000 for a Category 4 license
Annual license fee: Starts from $15,000 for a Category 4 license

Total Estimated Cost

The total cost to set up a holding company in DIFC is estimated to be above $25,000

However, this can vary substantially based on the type of company, office space chosen, and number of visas required. The initial setup costs for regulated firms can range from $50,000 to $90,000 before becoming operational.

It’s important to note that these costs are subject to change and may vary depending on your business’s requirements. It’s advisable to consult with a business setup expert or directly with DIFC authorities for the most up-to-date and accurate cost information tailored to your specific business needs.

Our expert DIFC Free Zone authorised consultants can incorporate a company in DIFC according to the client’s and prospect’s business models and plans.

We provide end-to-end solutions to all clients in the business setup of DIFC, licensing amendment services in DIFC, and PRO services in DIFC as per the rules and regulations of Dubai International Financial Center.