The Dubai International Financial Center or DIFC is Dubai's financial center located between the east and west of the region. It is a free zone providing a stable business and financial platform for all types of businesses. Many companies register a freezone company in DIFC to tap into markets of the Middle East, South Asia, and Africa. Plus, the internationally recognized and fully independent regulatory body, coupled with a tax friendly environment, common law framework and a growing demand for financial services has made DIFC a very popular choice.
Why European and American businesses choose DIFC?
International companies based in Europe and America choose DIFC because of its conveniently positioned time zone between major markets like those of Hong Kong, New York, London, and Tokyo. The fact that businesses can take advantage of state of the art services, coupled with safety and cost effectiveness makes the DIFC free zone an excellent choice.
Types of licenses offered by DIFC Free Zone
Businesses that want to register a freezone company in DIFC need to choose between two license options i.e. Non-Regulated License and a regulated license. We briefly describe both below:
- A Non-Regulated License: A non-regulated DIFC business license or registration can be used by all business except for those in the finance and banking sectors. So, all non-financial businesses like gyms, jewelry retailers, apparel stores, traders, etc. can get a non-regulated business license. Also, hotels and academic institutions can also get a non-regulated license.
- A Regulated License: A regulated license is meant for businesses in the banking and financial sector. Any business that involves a bank needs to be regulated. However, regulated businesses make up the majority of firms in the DIFC free zone.
Top Reasons to Register A Free Zone Company In DIFC
- No Taxes: You and your business is covered by a 50-year tax exemption guarantee. So, you'll not be liable to pay either income taxes or business taxes of any sort. Plus, the UAE does not incorporate double taxation with a broad network of treaties with over 50 countries.
- Complete Foreign Ownership: All DIFC companies are entitled to 100% ownership. Also, thanks to world-class regulation it allows for the setting up various businesses incorporating an array of legal structures. So, businesses are a lot more flexible with a DIFC business license.
- No Capital Repatriation Restriction:> When you start a freezone company in DIFC, there are no restrictions or limitations on your capital or the flow of profits. Also, unlike other countries you do not face currency exchange issues, which allows businesses to receive and pay internationally without a hassle.
- A solid common law framework: DIFC's legal and court system follow a very well executed common law framework which is enforced by an independent regulator and adjudicated by a trustworthyjudicial system. It is distinct from customary UAE law since the regulations, and the legal framework is in English.
- World class regulation / regulator: One of the biggest reasons why DIFC has been so successful is because of its fully independent risk regulator i.e. the Dubai Financial Services Authority (DFSA). It is the DFSA's job to grant licenses and to regulate all the financial services which are conducted via the DIFC. Interestingly the DFSA was reorganized by the Financial Services Authority in the UK, as well as the US Federal Reserve, and it also happens to be a member of the IOSCO. The DFSA also has over 90 MOUs with various regulators and central banks internationally.
DIFC Business License Requirements are:
- A duly filled application form
- A business plan. The plan should elaborate how the company fits DIFCs objectives as well as outlining the value of the business
- The company's financial projection for the next three years
- Two years of annual accounts for a startup. You'll need to provide a source of funds
- Passport copies and biography of the management team
The above items are reviewed in detail by the Business Entities department and are then sent to the Registration Review Committee for their approval. The final decision is made after evaluation, and the following are found to be true:
- Business risk
- Employee and employment suitability
- Centre building
- Financial backing
- Contribution to the country's GDP
- Overall business implementation
How do we help you?
At Fast Free Zone we assist in setting up a free zone company in DIFC. Our affordable service can ensure that your business is up and running in no time. Whether you want to open up a branch office, or a fully functioning financial service we can assist you with all the approvals and legal documentation.
Contact us today for a free consultation. .