The Dubai International Financial Centre (DIFC) stands as the leading global financial hub in the Middle East, Africa, and South Asia (MEASA) region. Governed by an independent, common-law judicial system, it offers a robust legal framework that attracts international investors, financial institutions, and FinTech startups.
Understanding the DIFC company setup process requires a deep dive into the DIFC Companies Law No. 5 of 2018 and its accompanying regulations. This guide provides a comprehensive legal roadmap for entities seeking to establish a presence within this premier jurisdiction.
Understanding the Legal Framework for DIFC Company Formation
When embarking on setting up a company in DIFC, investors must first recognize that the jurisdiction operates under its own civil and commercial laws, distinct from the UAE’s onshore civil law system.
The Role of the DIFC Registrar of Companies (ROC)
The DIFC incorporation process is primarily managed by the Registrar of Companies. The ROC’s mandate, derived from the DIFC Operating Law, is to ensure that all entities operating within the center are properly registered and compliant with statutory filings.
Key Legislation Governing Setup
- DIFC Companies Law No. 5 of 2018: The primary statute governing the lifecycle of a company.
- DIFC Operating Law (DIFC Law No. 7 of 2018): Governs the licensing and operational requirements.
- DIFC Fees Rules: Outlines the mandatory costs associated with registration.
- DIFC Data Protection Law: Critical for companies handling personal data.
Selecting the Right Entity: DIFC Company Types
A critical step in the difc business registration process is selecting the legal structure that aligns with your commercial objectives.
Private Companies (Limited Liability)
The DIFC LLC formation (Private Company) is the most common choice for SMEs and startups. Under the 2018 Law, there is no minimum share capital requirement, though the capital must be sufficient for the proposed business activities.
Public Companies
Suitable for larger organizations planning to list on an exchange or those with more than 50 shareholders.
Branches of Foreign or UAE Companies
For established entities looking to expand, a DIFC branch setup allows the parent company to retain 100% ownership without creating a separate legal personality.
Foundations and Family Offices
DIFC offers specialized structures for wealth management and succession planning, governed by the DIFC Foundations Law.
The Step-by-Step DIFC Company Formation Guide
Navigating the step by step difc company formation requires meticulous attention to administrative and legal details.
Step 1: Submission of Interest
The process begins with an inquiry through the DIFC portal. For regulated financial services, a “Letter of Intent” must be discussed with the Dubai Financial Services Authority (DFSA).
Step 2: Name Reservation
The proposed name must comply with the DIFC Registrar Rules. It cannot be misleading or similar to existing protected brands.
Step 3: Application Submission
This involves submitting the detailed documents needed for a DIFC company, including:
- Articles of Association (Standard or Tailored).
- Proof of Address (Lease Agreement/Fitted Office).
- Passport copies and CVs of Directors and Senior Management.
Step 4: Initial Approval and Licensing
Once the ROC reviews the difc company formation requirements, an “Initial Approval” is granted. This allows the entity to finalize its physical office space and open a corporate bank account.
Step 5: Final Registration
Upon signing the lease and paying the requisite fees under the DIFC Fees Rules, the ROC issues the Commercial License and Certificate of Incorporation.
DIFC Company Setup Cost and Timeline
Estimated Costs
While fees are subject to change, the difc company setup cost typically includes:
- Application Fee: Approx. $8,000 (USD).
- Annual License Fee: Starts from $12,000 (USD) depending on activity.
- Data Protection Fee: $500–$1,250 (USD).
- Office Rent: Variable based on square footage within DIFC.
Expected Timeline
The difc company setup timeline generally spans 4 to 8 weeks for non-regulated entities. Regulated entities (banks, asset managers) may take 6 to 9 months due to the rigorous DFSA vetting process.
Post-Incorporation Compliance and Governance
Once the difc incorporation checklist is complete, companies must adhere to ongoing statutory obligations:
- Annual Return Filing: Mandatory filing with the ROC.
- Financial Audit: Companies must appoint a DIFC-approved auditor.
- Ultimate Beneficial Ownership (UBO): Maintaining a UBO register is a legal requirement under UAE Federal AML laws and DIFC regulations.
Frequently Asked Questions
Q1: Can I own 100% of my company in DIFC?
Yes. DIFC allows 100% foreign ownership. Our advisors assist in ensuring the Articles of Association reflect this structure accurately under the DIFC Companies Law.
Q2: What is the minimum office space requirement?
DIFC requires a physical office. “Flexi-desk” options are available for certain categories, but most entities must secure a physical lease verified by the ROC.
Q3: How do the DIFC Courts protect my business?
The DIFC Courts operate under a common law framework in English. This provides a predictable legal environment for contract enforcement and dispute resolution.
Q4: Do I need a local partner?
No. Unlike some onshore categories, setting up a company in DIFC does not require a UAE National shareholder.
Q5: What are the tax implications?
DIFC offers a 0% tax rate on corporate income and profits (guaranteed for 50 years), though UAE Federal Corporate Tax (9%) may apply if certain thresholds and criteria are met.
Q6: Can a DIFC company operate in mainland Dubai?
Generally, a DIFC license is restricted to the zone. For mainland operations, a separate Department of Economy and Tourism (DET) license or a “dual licensing” arrangement is required.
Q7: Is a DIFC company subject to VAT?
Yes, if the taxable supplies exceed the mandatory registration threshold of AED 375,000, as per UAE Federal Tax Authority (FTA) regulations.
Q8: How do I change directors after setup?
This requires a board resolution and a formal filing with the ROC. Our difc company formation lawyers can manage these statutory filings to ensure compliance.
Q9: What is the role of the DFSA?
The DFSA regulates financial and ancillary services. If your activity is “Financial,” you must obtain a FSP (Financial Services Permission) in addition to the ROC license.
Q10: Can I migrate an existing foreign company to DIFC?
Yes, the DIFC Companies Law allows for “Continuation,” where a foreign entity can transfer its seat of incorporation to DIFC without losing its legal history.
Overviews
English
Setting up in DIFC offers a common-law jurisdiction, 100% ownership, and access to the DIFC Courts. The process involves ROC registration, compliance with the Companies Law 2018, and securing physical premises.
Arabic
يوفر مركز دبي المالي العالمي (DIFC) بيئة قانونية قائمة على القانون العام، مما يسمح بالملكية الأجنبية بنسبة 100٪. تتضمن عملية التأسيس التسجيل لدى مسجل الشركات والامتثال لقانون الشركات لعام 2018، مع ضرورة وجود مقر فعلي للشركة داخل المركز.
Spanish
Establecer una empresa en el DIFC ofrece una jurisdicción de “Common Law”, propiedad 100% extranjera y acceso a los Tribunales del DIFC. El proceso requiere el registro ante el ROC y el cumplimiento de la Ley de Sociedades de 2018.
French
L’implantation au DIFC offre une juridiction de common law, une propriété à 100 % et l’accès aux tribunaux du DIFC. Le processus comprend l’enregistrement au ROC et le respect de la loi sur les sociétés de 2018.
German
Die Gründung im DIFC bietet eine Common-Law-Gerichtsbarkeit, 100 % Eigentum und Zugang zu den DIFC-Gerichten. Der Prozess umfasst die ROC-Registrierung und die Einhaltung des Gesellschaftsgesetzes von 2018.
Italian
L’apertura di una società nel DIFC offre una giurisdizione di common law, il 100% di proprietà straniera e l’accesso ai tribunali DIFC. La procedura prevede la registrazione presso il ROC e la conformità alla legge sulle società del 2018.
Russian
Регистрация компании в DIFC обеспечивает юрисдикцию общего права, 100% иностранную собственность и доступ к судам DIFC. Процесс включает регистрацию в ROC и соблюдение Закона о компаниях 2018 года.
Ukrainian
Створення компанії в DIFC забезпечує юрисдикцію загального права, 100% іноземну власність та доступ до судів DIFC. Процес включає реєстрацію в ROC та дотримання Закону про компанії 2018 року.
Portuguese
A abertura de uma empresa no DIFC oferece uma jurisdição de “Common Law”, 100% de propriedade e acesso aos tribunais do DIFC. O processo envolve o registro no ROC e o cumprimento da Lei das Sociedades de 2018.
Chinese
在DIFC设立公司提供普通法管辖权、100%外资所有权并可使用DIFC法院。流程包括向ROC注册并遵守2018年《公司法》。
Persian
راهاندازی شرکت در DIFC یک حوزه قضایی کامن لا، مالکیت 100٪ و دسترسی به دادگاههای DIFC را فراهم میکند. این فرآیند شامل ثبت در ROC و رعایت قانون شرکتهای 2018 است.
Hebrew
הקמת חברה ב-DIFC מציעה סמכות שיפוט של המשפט המקובל, 100% בעלות זרה וגישה לבתי המשפט של ה-DIFC. התהליך כולל רישום ב-ROC ועמידה בחוק החברות של 2018.