Dubai is one of the top hubs in the region for finance, lifestyle, business, trading and what not? it’s the ideal destination for aspiring and young entrepreneurs and investors to set up here. The Dubai International Financial Center (DIFC) was created as the UAE’s response to major world financial centers such as London in Europe, Hong Kong in the Far East, and New York in the United States.
However, DIFC has grown over the years to become one of the leading financial centers in the Middle East and Africa region. The business incorporation process in the DIFC offers foreign investors the opportunity to take advantage of the region’s vast wealth opportunities.
The Dubai International Financial Centre is a well-regulated hub for financial organizations, investment companies and other designated professions and non-financial businesses. DIFC provides investors with quality infrastructure, modern office space, unique business licenses and progressive legislation.
DIFC Regulatory structure
Investors who want to know about the process of business formation in DIFC need to understand the financial free zone regulatory structure. The DIFC is regulated by three entities which are:
- DIFC Authority for Unregulated Entities
- Dubai Financial Services Authority for financial companies
- DIFC Courts for Arbitration Supervision
Perks of Starting a Business in DIFC
By establishing a business in DIFC, investors are entitled to the following benefits:
Foreign investors can enjoy full ownership of the companies formatted in DIFC. There is no condition to appoint a local sponsor while establishing a company in DIFC. in addition, the investors can have 100% return of profits as well.
Elite Regulatory Environment
The presence of the DFSA as one of the regulator or administrators has had a good impact on the financial services sector growth in Dubai. The DFSA is an independent regulator that licenses and regulates all banking and financial institutions activities in the DIFC.
The formation of the DFSA was based on the regulatory framework of the financial centers in London and New York. The DFSA has provided an efficient and secure platform for financial institutions to set up businesses in Dubai.
Efficiencies of Tax
The United Arab Emirates is generally known as a tax-free country, which is the main reason why investors around the world prefer to set up a business here. DIFC give guarantee of 40 years of zero taxes on profits and corporate income. Investors can benefit from the UAE’s extensive network of double taxation treaties with more than 100 countries. To better understand the tax requirements, consult with our beyond view business setup consultants.
A unique legal System
By formatting a business in DIFC, foreign investors gain access to a unique legislative system based on English Common Law. The entities of Courts in DIFC are responsible for the implementation of law and justice in the DIFC. The DIFC has its own independent jurisdiction over all civil and commercial disputes arising in the DIFC. The DIFC’s autonomous court system is a gift for entrepreneurs as they don’t have to be confused by the complexities of Islamic law.
The strategic location of DIFC in Dubai, which is considered the entrance to the Middle East and other major industries. The location of DIFC is ideal to tap the potential of rising markets in the region of Asia and Africa. The free zone provides great connectivity by air, land and sea, which is easing the international business. Offices managements, family offices and holding companies can initiate their business near to the property they manage and own.
Clear pricing and Easy setup
DIFC is famous for its easy company formation process. But there will be little changes between regulated and non-regulated firms, and your company nature will also play as a big factor as well.
With that, living in the DIFC will not be cheap, but their straightforward and clear pricing structure will be of huge benefits and will reassure you that you are getting your money’s worth. Here’s a quick guide.
- Initial setup cost: $21,000
- Licensing fees, office costs, share capital: $50,000.
- Creating a proper plan of business may also cost a few thousand dollars.
Top business activities allowed in DIFC
Business activities Permitted in DIFC are key parameters that investors should go through before considering the process of setting up a business in Dubai Free Zones. The DIFC enables a myriad of activities that are beneficial. The following main activities are allowed in the DIFC:
- Personal banking
- Investment banking
- Prescribed companies
- Insurance and collateral
- Professional service providers
- Islamic finance
- Private equity
- Capital markets
- Asset management
- Property management
- Private Equity
- Cafes and restaurants
- Art gallery
- Company offices
- Fund management
Required documentation for business setup in DIFC
- Detailed business plan
- Details of key controllers, major shareholders with more than 5% stake and certificate of key employees confirming the company’s ability to do business
- Organizational chart of proposed applicants
- Detailed information about operating systems and controls
- Company processes on compliance systems and internal audits.
- Audited financial report for shareholders for the last 3 years
- Completed anti-money laundering application
- If you are applying for a branch, the financial position of company and profile of regulatory history.
The Innovation License in DIFC allows innovators to establish, grow and broaden their innovation business. By obtaining an Innovation License in DIFC, entrepreneurs can connect with the community of banks, financial institutions and service providers. The DIFC Innovation License start at $1,500 per year with the best coworking and flexible workspaces access. Investors can apply for up to four first board visas. The DIFC Innovation License targets companies focusing on cutting-edge technology.
Unique feature of company incorporation in DIFC
The process of starting a business in DIFC is significantly different from the process of setting up a business in Dubai. One of the main dissimilarities is that investors establishing a DIFC financial services company will not be subject to the laws of the financial services regulators in UAE. However, these companies are subject to the UAE’s federal AML and Countering the Financing of Terrorism laws.
Why choose Beyond View as business setup consultant?
The procedure of setting up a business in the DIFC includes some common aspects that are uniform across almost all jurisdictions. However, as the DIFC is governed by its own independent laws, you need to know its rules. Taking a casual approach can confused the process, but business formation consultants in Dubai such as beyond view Business Setup Consultants can help you.
We can assist you with key services of setting up a business in Dubai such as opening a bank account, drafting documents, visa processing, VAT compliance, ESR compliance, anti-money laundering and anti-terrorist financing, ultimate beneficial ownership etc. Beyond view is the ultimate solution to all the problems associated with the company formation process in DFIC. Contact us today. we’d love to assist!