DIFC Prescribed Companies

✅ Cost-Effective Business Solutions – Ideal for asset holding, structured finance, and special-purpose entities.
✅ Regulatory Advantage – Operate within the DIFC’s globally recognized legal framework.
✅ Tax Benefits – Enjoy 0% corporate tax and no withholding tax on profits.
✅ Global Market Access – Strategically positioned for international trade and investment.
✅ Flexible Corporate Structures – Tailored for businesses, investors, and high-net-worth individuals.

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DIFC Prescribed Companies offer an efficient business structure within the Dubai International Financial Centre (DIFC). These regulations are referred to as the “Prescribed Company Regulations 2024.”They offer cost-effective solutions for asset holding, structured finance, and special-purpose activities. These companies cater to both businesses and individuals seeking streamlined operations within one of the UAE’s leading financial hubs.

In 2025, DIFC Prescribed Companies are more relevant than ever due to their simplified compliance requirements and financial benefits. They provide a robust legal framework, ensuring asset protection and corporate transparency. Businesses and investors can take advantage of DIFC’s strategic location, connecting global markets and fostering opportunities for growth.

DIFC Prescribed Companies allow organizations to operate with lower costs while benefiting from the advantages of a regulated financial environment. Whether you are planning wealth management or global investments, this structure offers flexibility and reliability for diverse needs.

DIFC Prescribed Company Eligibility 2024

1. Control-Based Qualification

GCC PersonsA Prescribed Company can be controlled by any of these GCC-related entities:

  • Individual citizens of any GCC member state
  • Corporate bodies (including companies and partnerships) controlled by GCC citizens
  • Companies listed on GCC securities exchanges
  • Government entities including federal, Dubai, or other emirate governments
  • This control must be demonstrable and maintained throughout the company’s existence

Registered Persons

  • A DIFC-registered entity (excluding another Prescribed Company or a Non-Profit Incorporated Organisation (NPIO)).

Authorised Firms

  • A person holding a DFSA licence or a licence from a Recognised Financial Services Regulator to conduct one or more financial services (excluding a Representative Office).

Recognised regulators include those in Zone 1 countries, such as the UAE, UK, USA, Canada, Australia, Germany, France, and others.

2. GCC Registrable Assets Purpose

This pathway focuses on holding or controlling assets that require registration with GCC authorities. Eligible assets include:

  • Land and real property
  • Shares in private and public companies
  • Partnership interests
  • Other registrable assets requiring official documentation
  • The assets must be properly registered and documented with relevant GCC authorities

3. Qualifying Purpose Structures

Prescribed Companies can be established for specific qualifying purposes:

  • Aviation Structures: For aircraft ownership, leasing, and financing
  • Maritime Structures: For vessel ownership and maritime operations
  • Intellectual Property Structures: For managing IP rights
  • Crowdfunding Structures: For investment platforms and collective investments
  • Structured Financing: For complex financial arrangements and securities issuance
  • Each structure must strictly adhere to its declared purpose

4. Corporate Service Provider Route

This pathway allows establishment through:

  • Appointment of a Corporate Service Provider (CSP) employee as director
  • Formal arrangement between CSP and Registrar
  • CSP handling of AML/Compliance functions

Key Criteria for Qualification

1. Registered Office in DIFC

All prescribed companies must maintain a registered office within the DIFC jurisdiction.

2. Minimum Capital Requirements

While there are no stringent minimum capital thresholds, the company’s funding must be sufficient to support its operational activities.

3. Appointment of Service Providers

Companies must appoint a DIFC-registered agent for ongoing compliance and operational support.

4. Beneficiary Disclosure

Full disclosure of ultimate beneficial owners (UBOs) is mandatory, ensuring compliance with DIFC regulations and anti-money laundering (AML) policies.

Must maintain proper books and records

Annual compliance filings required

Key Benefits & Advantages

DIFC Prescribed Companies provide distinct advantages, making them an attractive choice for businesses and investors seeking cost-efficient corporate solutions. Their legal structure and operational flexibility are particularly beneficial for UAE-based and international clients.

Advantages for UAE and Global Clients

1. Cost Efficiency:

  • Lower setup and maintenance costs compared to other DIFC company structures.
  • Exemption from DIFC’s audited financial statement requirements for specific activities.

2. Strategic Location:

  • Operate within a globally recognized financial center connected to key markets across the Middle East, Africa, and Asia.
  • Benefit from the UAE’s position as a hub for global trade and finance.

3. Regulatory Benefits:

  • Access to DIFC’s robust legal framework based on English common law.
  • Enhanced financial transparency, providing credibility for global transactions.

4. Tax Advantages:

  • 0% corporate tax under UAE federal tax policies for eligible activities.
  • No withholding tax or restrictions on repatriating profits.

5. Flexibility in Operations:

  • Customizable corporate structures to meet diverse business needs, including holding companies, SPVs, and family wealth entities.
  • Fewer regulatory burdens, making it easier to focus on core business activities.

Setup Process & Requirements

Setting up a DIFC Prescribed Company involves a straightforward process designed to ensure regulatory compliance while maintaining efficiency. Here’s a step-by-step guide to establish your company in the DIFC.

Step-by-Step Setup Process

1. Pre-Application Stage:

  • Define the company’s purpose and ensure it aligns with permissible activities (e.g., asset holding, structured financing).
  • Appoint a DIFC-registered agent to facilitate the process.

2. Application Submission:

  • Complete and submit the prescribed company application form via the DIFC Authority portal.
  • Provide all required documentation, including identity verification for shareholders and directors.

3. Document Review:

DIFC will review the application to ensure compliance with DIFC Foundation Law and other regulatory requirements.

4. Issuance of Certificate:

  • Upon approval, a Certificate of Incorporation is issued, confirming the company’s legal registration.

5. Post-Incorporation Compliance:

  • Open a corporate bank account in the UAE.
  • Maintain a registered office within the DIFC.

Documentation Requirements

1. Application for Incorporation

Submit this form to the DIFC Registrar of Companies to start the incorporation process. It includes the company’s name, purpose, and structure.

2. Articles of Association

Use the standard form, ensuring activities align with the Qualifying Purpose if applicable.

3. Memorandum of Association

This document outlines the company’s purpose and powers, usually in a standardized format.

4. Resolution to Establish a Registered Office

Confirms the establishment of a registered office within the DIFC.

5. Proof of Registered Office Address

Provide documentation confirming the company’s registered office location within the DIFC.

6. Identification Documents for Shareholders and Directors

Include passports and proof of residence for all shareholders and directors.

7. Business Plan

A detailed business plan may be required to outline the company’s objectives and operations.

8. Confirmation Statement

Filed annually to confirm the company’s compliance with DIFC regulations.

9. License Application Form

Submit this form to obtain the necessary business license from the DIFC.

10. Proof of Payment for Fees

Provide receipts showing payment of incorporation and licensing fees.

11. Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Documents

Include due diligence reports and other compliance-related documents.

Timelines

  • The registration process typically takes 5-7 business days once all documentation is complete.

Local Requirements

  • Adherence to DIFC’s AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism) regulations is mandatory.
  • Companies must also comply with ongoing reporting obligations, including UBO updates and annual filings.

Operational Considerations

Operating a DIFC Prescribed Company requires careful adherence to regulatory and operational guidelines. These considerations ensure compliance while allowing companies to focus on their core objectives.

Activity Restrictions

  • Prescribed Companies are limited to specific activities such as asset holding, family wealth management, and structured finance.
  • General trading, retail operations, and commercial activities outside approved purposes are prohibited.

Compliance Obligations

  • Financial Reporting: Annual submission of financial statements may be required, depending on the company’s activities.
  • Record Keeping: Companies must maintain accurate records of transactions, meeting minutes, and changes to the company structure.
  • Beneficial Ownership Updates: Any changes to ultimate beneficial ownership (UBO) details must be reported promptly to the DIFC Authority.

Corporate Governance

  • A minimum of one director is required to manage the company’s operations.
  • Regular meetings should be held to ensure compliance with internal policies and regulatory requirements.

UAE-Specific Considerations

  • AML/CFT: Implement strong customer verification processes, monitor transactions, and report suspicious activities.
  • Data Protection: Ensure data security, obtain consent for data processing, and respond quickly to data breaches.
  • Penalties: Avoid hefty fines by maintaining compliance with both AML regulations and data protection laws.

Registered Office Maintenance

  • A physical registered office within DIFC is mandatory throughout the company’s operational lifecycle. This ensures alignment with local jurisdictional requirements.

Use Cases & Applications

DIFC Prescribed Companies are versatile entities designed to meet the needs of businesses and individuals in specialized scenarios. Their adaptability makes them valuable for various applications in the UAE and beyond.

Common Use Cases

1. Asset Holding

  • Securely hold assets such as real estate, intellectual property, and investments.
  • Ideal for high-net-worth individuals (HNWIs) and family offices.

2. Structured Finance

  • Facilitate securitization, debt issuance, and other financial transactions.
  • Frequently used by financial institutions and multinational corporations.

3. Family Wealth Management

  • Simplify the management and transfer of family wealth across generations.
  • Ensure succession planning while maintaining control over assets.

4. Special Purpose Vehicles (SPVs)

  • Used for mergers, acquisitions, joint ventures, or risk mitigation strategies.

5. Charitable Foundations

  • Establish a platform for philanthropic activities with transparency and accountability.

UAE-Specific Applications

1. Corporate Restructuring

  • Streamline business operations by consolidating assets and entities under a DIFC Prescribed Company.

2. Cross-Border Investments

  • Leverage DIFC’s global financial connectivity to facilitate international transactions.

Legal Framework & Compliance

DIFC Prescribed Companies operate under a well-defined legal framework that ensures compliance with both local and international standards. This framework provides security, transparency, and regulatory oversight.

Key Governing Laws

1. DIFC Companies Law No. 5 of 2018:

  • Establishes the rules for incorporation, governance, and operations of DIFC companies.

2. DIFC Prescribed Company Regulations 2019:

  • Defines specific criteria, limitations, and obligations for prescribed companies.

3. UAE Federal AML and CFT Regulations:

  • Ensures compliance with anti-money laundering and anti-terrorism financing laws.

4. DIFC Data Protection Law:

  • Mandates strict data privacy measures to safeguard sensitive information.

Compliance Requirements

1. Annual Reporting:

  • Submit financial statements and updates on company structure and UBO information.

2. Record Maintenance:

  • Maintain accurate and accessible records of transactions, meeting minutes, and internal decisions.

3. Adherence to Permitted Activities:

  • Operate strictly within the approved scope of activities as outlined during registration.

Penalties for Non-Compliance

  • Monetary fines for violations.
  • Suspension or cancellation of company licenses.
  • Potential legal consequences under UAE law.

Cost Structure

DIFC Prescribed Companies are known for their cost efficiency, making them a preferred choice for businesses and individuals. Below is a breakdown of the costs associated with setting up and maintaining a prescribed company.

Setup Costs

  • Application Fee: USD 100 – USD 12,000 (based on activity type).
  • Registered Office Fee: USD 3,500 annually (registered agent address).
  • Professional Service Fees: Advisory and document preparation costs range from USD 3,000 – USD 6,000.

Annual Maintenance Costs

  • Renewal Fee: USD 100 – USD 12,000
  • Compliance and Reporting Fees: Varies based on activities and registered agent services.

Additional Costs

  • Amendments: Fees apply for changes to the company structure or documentation.
  • Fines for Non-Compliance: Monetary penalties may be incurred for missed deadlines or regulatory violations.

Transparency in Pricing

These costs are transparent and predictable, allowing businesses to plan budgets effectively. DIFC offers a competitive pricing model compared to other jurisdictions, particularly for companies focused on asset management or financial structuring.

Professional Support Services

Setting up and managing a DIFC Prescribed Company can be simplified with professional support services. Juriszone offers comprehensive assistance to ensure compliance and operational efficiency.

Our Services Include:

  • Advisory Support: Assess eligibility and align business activities with DIFC regulations.
  • Documentation Preparation: Draft and submit required documents, including Articles of Association, Memorandum of Association, and UBO declarations.
  • Registered Agent Services: Act as a DIFC-registered agent to manage compliance and reporting obligations.
  • Compliance Monitoring: Ensure ongoing adherence to AML/CFT and data protection regulations.
  • Post-Incorporation Services: Support with corporate bank account setup, office leasing, and administrative tasks.

Why Choose Juriszone?

Our expert team combines local knowledge with global expertise to guide you through every step of the process. We ensure efficient registration, reduce risks of non-compliance, and provide ongoing support to help you focus on achieving your business goals.

With Juriszone, you gain a reliable partner to simplify the complexities of operating within DIFC.