DIFC free zone is a financial center of Dubai and provides a platform for DIFC company formation. It is a federal financial free zone and was established according to UAE Federal Order No# 35 of 2004; UAE Federal Law No# 8 of 2004 and Dubai Law No# 12 of 2004. The DIFC has its own legal system as well as a courts, free from those of the UAE.
The DIFCfree zone is a special economic zone in Dubai covering 110 hectare. It was established in March 2004 and a financial hub for the Middle East; Africa as well as a South Asia (MEASA) markets. DIFC free trade zone has its own free regulator as well as judicial system; common law frame work, tax friendly system, global financial exchange and also a large business community. DIFC free zone is a house for hundreds of financial firm. It is a house for wealth funds and private investors; but it also hosts groups of retail outlets, cafe, also for restaurants; public green spaces, residential space and hotels as well as art galleries.
DIFC free zone is one of the Dubai free trade zone; it offers you a 100% ownership in order to setup a company without the need of a local partner. This free trade zone is run by a common law frame work different from the one UAE legal system; with laws and as well as regulations issue in English. DIFC free zone offers its clients a 50 year surety of zero per cent tax on corporate income as well as profits; make up for the UAE’s network of DTA treaties.
DIFC company formation
The goal of DIFC free zone is to provide a platform for company formation in Dubai; and mostly for the financial firm to perform business with the emerging markets of the region. It was recognized with the dream of generating a background for development; progress and economic growth in the UAE; while opening the area markets by providing globally accepted legal as well as business practice; and also it has a proper structure which keeps it with global standards.
It is a global financial hub usefully situated in the middle of the Dubai. It is restricted by an area which is fast emerging and rich in natural resources and petro dollars. Combined with the tax friendly government; and the unrestricted attitude on the subject of capital repatriation as well as movement of funds; it provide a financial target and center that is matchless.
Benefits of Company formation in DIFC free zone
Following are the leading advantages of company formation in DIFC free zone
100 percent overseas ownership is allowed for company formation in DIFC free zone.
Environment for company formation in DIFC is dollar denominated environment.
A wide tax agreement network for UAE merged entities.
An exclusively clear and crystal operating environment, meet the terms with international good practices.
Independence of repatriation of capital and income for DIFC company formation.
A world-class and self-governing, regulatory agency working alongside other financial regulatory agencies situated in key international jurisdictions.
A range of legal vehicles which may be recognized with capital structuring flexibility.
An international stock exchange with primary and secondary listings of debt as well as equity instruments.
A pool of expert professionals exists in Dubai and the region.
A responsive one stop shop service for visas and work permits as well as other related requirements.
A new and well-organized transport, communications and internet infrastructure.
Types of Entities for DIFC company formation:
Limited Liability DIFC company formation – LLC – A Limited Liability Company may not become regulated by the DFSA and may not issue securities. A minimum of one member is mandatory.
Company Limited by Shares – LTD – This type of a company is allow to raise capital; that is by offering shares as per a public offer and can issue securities. This type of a firm need at least one partner.
Limited Liability Partnership – LLP – LLP is a type of a firm which may need two or more partner; that is who must be members of the LLP. The liabilities of the members are limited to the extent of their shares in the LLP.
General Partnership – GP – This type of a firm need two or more partner. In this case all partner are mutually as well as separately liable for the debts of the partnership.
Recognized DIFC company formation – RC; This type of a firm is a branch of an existing external company within the DIFC. A RC is not a separate unit; and therefore it is just working as the extension of the foreign company.
Limited Partnership – LP – This type of a firm has a two or more partner; and also you need to include at least one general share holder; whose liability will be limitless and also you need one partner whose liability must be limited.
Special Purpose Companies – according to their agreement they require to be licensed to operate under the DIFC Authority.
Non-regulated DIFC company formation
Pre-existing LLP, GP or LP may be registered in the DIFC free zone.
The DIFC free zone Authority also allow foreign companies to be transfer its operation to the DIFC; but there is one condition that the foreign company is authorized to do so;
Non-regulated DIFC company formation are those; that is set up in the DIFC but are not involved in booming on a Financial Service; or are not required to be regulated pursuant to one or more of the exemptions set out in the DFSA Rulebooks. Examples of these entities include companies working proprietary investments; service providers such as recruitment agencies, coffee shops, restaurants as well as bars etc.; company carrying out activities of a support or back office nature, DIFC holding company.
Main characteristics of DIFC free zone company formation:
Following are the major characteristics of DIFC free zone company formation
DIFC Free Zone
DIFC free trade zone
No corporate tax as well as no personal tax
DIFC laws as well as regulations
Information publish relating to company officers
No names are disclose
UAE dirhams pegged to USD
Time to form
30 working days
Every company shall keep accounting records, accounting and also auditing are mandatory
No need of a local in the DIFC free zone
Efficient means of communication
Residence visa issuance
Number of directors needed
Depends on the size of the office space
Registrar of Companies for Company setup in DIFC free zone
Registrar is in charge for setup of a company in DIFC free zone. It also has an essential role in given that information on DIFC entities.
The basic functions of Registrar of Companies for company formation in DIFC free zone are:
DIFC company formation as well as liquidate DIFC free zone companies;
Examine as well as store DIFC company formation information supplied under the appropriate laws and regulations;
And make the DIFC company formation information accessible to the public.
The role of the Registrar is to instruct on; review and receive as well as to process all the request for you. When you submit it for to do company formation in DIFC free zone.
Silent feature of Dubai International Financial Center free zone
In order to attract client to set up company DIFC free zone; Dubai International Financial center free zone provides a 40 year guarantee of zero taxes on corporate income and earnings.
In order to attract client to set up company DIFC free zone; Dubai International Financial Center free zone, offer 100% ownership; as well as a world class and best working environment which allows for a wide range of legal entities.
Hub as well as a Spoke Model
Dubai International Financial Center free zone offers a plat form for you to centralize; the local as well as global operations and their roll out to branches around the globe.
Independent Regulatory Environment
An independent risk base regulator, the DFSA awards licenses and regulates; that is the activities of financial services conduct through DIFC free trade zone.
Common Law Frame work
Dubai International Financial Center free zone has its own legal system as well as courts; which follow a Common Law frame work; DIFC free trade zone has a free regulator which is equally respected court system.
No Restriction on Capital Repatriation
Dubai International Financial Center free zone base company face no restrictions on capital or profit flows; and DIFC free trade has also no limits no currency exchange; because it is a US dollar denominated free zone.
Document required for company formation in DIFC free zone
In the first place you need to reserve a trade name.
Passport (PP) Copy of each of the partner who will involve in DIFC company formation
Proof of initial approval for the activity which you are looking to add in the license.
Personal Info sheet for each and every partner as well as manager; We will also give you a simple of this form
Passport copy as well as C.V of the Manager
A Notarize POA which state that you are hiring Our Firm as your legal consultant for DIFC company formation; So that we can perform on your behalf.
Lease agreement – You also need to show a Lease agreement; which show that you have a physical address for your office. The average rent in within the free zone area is US$ 25 up to US$ 45 per sq. / ft. (US$ 225 up to US$ 400 per sq. /m.). Our company can help you while looking for your office.
Also during the process, may be a requirement for a few other documents by the authorities
There are some activities which need a third party approval; so for that an extra cost as well as our fee might be needed.
Additional Documents required for a corporate shareholder
The board of directors need to issue a board resolution for your current firm; that is in the place of origin to show its interest in new setup in DIFC free zone. You also need to attest this in the UAE Embassy in your country. (We will also give you a simple of this form)
You also need to attest MOA as well as AOA from the UAE Embassy at the place of origin.
We are DIFC Business Setup Consultants; If you are looking for DIFC company formation; then you must need to apply for one of the DIFC entity; you can do so by submitting your application to the ROC; who will receive, advise and review as well as process all of your request. The ROC will give you a detailed check list of forms; along with all the docs which you need to submit. The ROC will then issue you a License.