DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC)

DIFC: Dubai  International Financial Centre: Overview

Dubai International Financial Centre (DIFC) is a top ten global financial centre and is home to both an internationally recognized, independent regulator and a proven judicial system with an English common law framework.

With a 15-year track record of facilitating trade and investment flows across the MEASA region, the Centre connects these fast-growing markets with the economies of Asia, Europe and the Americas through Dubai.

DIFC is home to an internationally recognized, independent regulator and a proven judicial system with an English common law framework, as well as the region’s largest financial ecosystem of more than 25,600 professionals working across over 2,500 active registered companies – making up the largest and most diverse pool of industry talent in the region.

The Centre’s vision is to drive the future of finance. Today, it offers one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programs, and funding for growth-stage start-ups.

Comprising a variety of world-renowned retail and dining venues, a dynamic art and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of Dubai’s most sought-after business and lifestyle destinations.

Source: www.diafc.ae

 DIFC PROPOSED LICENSES

There are several types of DIFC licenses:

1. Professional License: For companies providing consulting and different type of services.
2. Commercial License: For companies engaged in import/export of different goods.
3. Retail License: For companies setting retail shop in DIFC area.
4. Foundation: Foundation is suitable for family businesses and asset protection.

Wide range of activities offered by DIFC  Free Zone

DIFC provides a wide range of business activities and specialized for financial activities. you can get up to 3 business activities from same business line can be added in a license. DIFC offers business activities with the following categories:

1. Consulting
2. Service
3. Retail
4. Foundation

Lease Facilities offered by DIFC:

DIFC is located in one of the premium location in Dubai. If you are planning to lease a space in one of the buildings owned by DIFC Investments Ltd which includes:

• The Gate Building
• Gate district buildings 2, 3, 4 and 5
• Gate Village buildings 1, 2, 3 ,4 ,5 ,6 ,7 ,8 ,10 and 11
• The Coffee Zone
• The Gate Avenue
• Pavilion:

Private office rent prices starts from 300 AED per SQ/FT.

DIFC Company Registration Process:

Stage 1: Provide DIFC with letter of Intent

Stage 2: Provide Business plan

Stage 3:  Submit Application documents to DFSA ( Required for financial activities)

Stage 4: DFSA issues in-principal approval

Stage 5: Registration and Incorporation with registrar of companies

Stage 6: DSFA final Inspection and authorization

DIFC Company Setup Cost:

DIFC License fees starts from USD 12,000 and the cost if renewal will be same as the first year license fees:

Particular	Fees
License fees	USD 12,000
Application	USD 500
Registrations fees	USD 8,000
Data Protection	USD 2,000

Office rental ( Private or Co-working) to be added to the above fees.

The time frame of the company registration is between 3 to 5 Weeks and the process could be done remotely so the presence of the shareholders is not required.

Several items to be considered with the above packages such as:

1. DIFC Establishment Card fee: 1st year AED 2,000 | Renewal fee: AED 2,200
2. DIFC Residence Visa fee: AED 3,750 per applicant
3. Medical checkup: VIP process AED 850 | Normal Process AED 450
4. Emirates ID application fee: AED 390

After obtaining the residence, the applicant my sponsor the family Members and get them a residence a dependents, the requirements are:

– Sponsor Original Emirates ID
– Sponsor Passport + visa copy (Original/Color copy)
– Salary Certificate-Arabic (from authority) OR Labor contract
– Ejari /Registered Tenancy contract OR / TITLE DEED + Dewa bill
– Dependent Color passport copy
– Marriage certificate/birth certificate (attested from home country, MOFA, and translated to Arabic)
– Clear PP size Photo

FOUNDATION

Establishing a foundation can indeed provide several benefits, Let’s explore some of these advantages in more detail:

Asset Distribution According to Wishes:

Foundations are legal entities that can hold and manage assets. By establishing a foundation, a founder can specify in detail how their assets should be managed and distributed after their passing. This helps ensure that their wishes are carried out as intended.

Family Succession:

Foundations can serve as effective tools for family succession planning. They provide a structure through which assets can be passed down to future generations, helping to maintain family wealth and legacy over time.

Tax Planning:

Foundations can offer tax advantages depending on the jurisdiction. In some cases, contributions to foundations may be tax-deductible, and income generated by the foundation may be tax-exempt. This can be a valuable aspect of overall tax planning for the founder and their beneficiaries.

Asset Protection:

Assets held within a foundation may be shielded from certain legal liabilities and creditor claims. This can provide a level of protection for the assets, ensuring they are preserved for the intended purposes or beneficiaries.

Corporate Structuring:

Foundations can be structured in various ways to meet specific goals. They can hold various types of assets, including shares in companies, real estate, or financial instruments. This flexibility allows for the customization of the foundation’s structure based on the founder’s objectives.

Public Interest Purposes (excluding charities):

Foundations can be established for purposes that benefit the public, such as educational, scientific, or cultural endeavors. Unlike charities, foundations may not be required to actively fundraise, making them suitable for individuals who want to support public interests without the same level of ongoing operational requirements.

It’s important to note that the specific benefits and regulations surrounding foundations can vary significantly based on the jurisdiction in which they are established. Consulting with legal and financial professionals familiar with the laws of the relevant jurisdiction is crucial when considering the establishment of a foundation to ensure compliance and optimal structuring based on individual circumstances.

To establish an entity as a Foundation in the DIFC, the following criteria must be met:

• A minimum of one (1) founder is required.
• A minimum of two (2) council members must be appointed.
• The Foundation must maintain a registered office in the DIFC at all times. This condition can be fulfilled by either leasing an office within the DIFC, sharing an office with an affiliated entity already present in the DIFC, or by designating a Registered Agent.
• The Foundation is prohibited from engaging in any commercial activities, except those that are essential for, and related or incidental to, its defined objectives.
• If a Foundation is established with a charitable or specified non-charitable objective, a Guardian must be appointed

Table of fees
Initial cost	Fee (USD)
Application Fees	$1,000
License fees	$200
Data Protection Fee (if applicable)	$750

DIFC Innovation License

The DIFC Innovation License presents a Commercial License featuring a subsidized fee structure (90% subsidy, reduced visa expenses, and an augmented visa quota) for all technology and innovation start-ups. This provides a chance to participate in the Innovation ecosystem and facilitate continued development and expansion. It is important to emphasize that this is a non-regulated license, and no financial services can be provided under its purview.

Open to all Technology and Innovation startups, regardless of sector:

1. Commercial Licensing at a subsidized rate of USD 1,500 (annual fee) plus a one-time registration fee of USD 1000.
2. Availability of co-working space with a flexible desk at USD 500 (+VAT) per month.
3. Allocation of up to 4 visas for the initial desk, along with discounted visa costs up to 50%.
4. Swift registration process and immediate access to the DIFC Ecosystem

Professional Advice on Starting a Business in Dubai:

Are you looking for the right Business setup consulting firm? FreeZoneMarket Powered by FZM Solutions DMCC is a platform specialized in company formation in Dubai where business owners can register and renew their company license and get assistance with visas, and banks.

If you are unable to find your business activity in IFZA or looking for affordable business setup solutions There is an alternative that could be Meydan Free Zone or Sharjah Free Zone.

We provide a wide range of business setup in Dubai and the UAE for businesses and companies. We offer a broad and diverse range of services to our clients!