Company Formation in Dubai International Financial Centre Free Zone

٣٠ يناير Company Formation in Dubai International Financial Centre Free Zone

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The Dubai International Financial Centre (DIFC) Free Zone is one of the most prominent investment destinations in Dubai, providing an advanced business environment that attracts companies from all over the world. Establishing a company in the DIFC Free Zone offers many advantages, making it a preferred choice for investors wishing to enter the financial and commercial markets in the region.

The Dubai International Financial Centre (DIFC) is a leading international financial centre, designed to be the ideal launch pad for financial and non-financial businesses alike. The Centre offers an advanced regulatory framework, with laws that encourage transparency and innovation, enhancing the business environment and attracting international investment. Companies that set up in the DIFC benefit from a flexible regulatory environment, income tax exemptions, full intellectual property protection, as well as access to a wide network of professionals and advanced financial services.

In addition, DIFC enjoys a strategic location in the heart of Dubai, providing easy access to the markets of the Middle East, Asia and Africa, and is enhanced by the presence of advanced infrastructure, including modern facilities and offices specifically designed to meet the needs of global companies.

However, establishing a company in the DIFC Free Zone requires a thorough understanding of the legal and administrative requirements, as well as careful planning to meet the necessary conditions for obtaining a license and registering the company. In this article, we will review the incorporation steps, the associated costs, the opportunities available, as well as the challenges that new companies may face in the DIFC Free Zone.

Types of entities registered in the Dubai International Financial Centre

Limited by Shares (LTD) – A company limited by shares is allowed to raise capital by offering shares in the form of an initial public offering and can also issue securities. It is essential to have at least one shareholder.
Limited Liability Companies (LLC) – A limited liability company is not subject to DIFC regulations and does not issue securities. It is essential to have at least one shareholder.
Recognised Companies (RC) – A recognised company is a registered branch of a foreign company already established in the DIFC. A recognised company is not a separate legal entity; it is simply an extension of an existing company established abroad.
Limited Liability Partnership (LLP) – This partnership is formed by two or more people, all of whom are part of the partnership. The liabilities of the members are limited to the extent of their contribution to the partnership.
General Partnership (GP) – This partnership is formed by two or more persons, and all partners are jointly and severally liable for the debts and obligations of the partnership.
Limited Partnership (LP) – This partnership is formed by two or more persons and must include at least one general partner whose liability is unlimited and one partner whose liability is limited to his contribution to the partnership.
Special Purpose Companies – These companies must be licensed to operate under the DIFC Authority by their charter.
Limited liability companies, public companies or limited partnerships that already exist in the DIFC can be registered.
The DIFC Authority allows foreign companies to relocate to the DIFC (provided that the foreign company is authorized to do so under the laws of the jurisdiction of incorporation).
Non-regulated entities are those that are established in the DIFC but are not engaged in the performance of a financial service (as defined in the DFSA Regulations) or are not subject to one or more of the exemptions set out in the DFSA Regulations. Examples of such entities include: holding companies, companies investing in real estate, companies carrying out support and technical support activities, and service providers such as recruitment agencies, restaurants, cafes and bars.

Steps to establish a company in the Dubai International Financial Centre

Establishing a company in the Dubai International Financial Centre requires following specific procedures. Here are the general steps to establish a company in the Dubai International Financial Centre:

Choose the type of company: Select the type of company you want to establish, such as a limited company, partnership, or sole proprietorship.
Determine the business activity: Choose the business activity carefully and ensure that it complies with the laws of the Dubai International Financial Centre.
Choosing a company name: Choose a company name and ensure that it complies with the DIFC Commercial Register regulations.
Submitting the application: Submit the application for establishing the company to the relevant authorities in the Dubai International Financial Centre.
Determine the company structure: Determine the company structure including shareholders, directors and their shares in the capital.
Obtaining business licenses and permits: Obtain the necessary licenses and permits to operate the company in the Dubai International Financial Centre.
Open a bank account: Open a bank account for the company in one of the approved banks in the Dubai International Financial Centre.
Visas and Employment: Obtain the necessary visas for foreign employees and ensure that local laws regarding employment are followed.
Compliance with laws and regulations: Ensure compliance with all local laws and regulations in the DIFC, including tax and financial matters.
Insurance: Insure the company in accordance with its business activity and the requirements of operating in the DIFC.

Documents required to establish a company in the Dubai International Financial Centre

To set up a company in the Dubai International Financial Centre (DIFC) free zone, a set of basic documents and papers must be submitted. The exact details vary depending on the type of company and its incorporation files, but in general, the required papers include:

Registration Application: The registration application form to be completed and submitted to the relevant authorities in DIFC.
Letter of Commitment: A formal letter from partners or shareholders confirming their commitment to establishing the company and specifying the details of the partners and the percentage owned.
Passports: Colour copies of passports of all partners and key managers.
Visas and Residency: If any of the partners or managers are residents of the UAE, copies of residency visas must be provided.
Resumes: Resumes of all partners and directors, including details of professional experience and education.
Articles of Association and Memorandum of Association: A draft of the company’s articles of association and memorandum of association, which sets out the company’s structure, purposes and management.
Lease Contract: A copy of the lease contract for the office or commercial space allocated to the company in the center.
Parent Company Documents: If the company is part of a group or a subsidiary of a parent company, documents proving the incorporation of the parent company, such as a certificate of registration and bylaws, must be submitted.
Letter from local bank: Letter from local bank confirming opening of company bank account with account details.
Other relevant documents: Any additional documents that may be required by the free zone authorities based on the type of activity and services provided.

Advantages of establishing a company in the Dubai International Financial Centre

Establishing a company in the Dubai International Financial Centre (DIFC) offers many advantages that make it a preferred choice for global companies. Here are the most prominent advantages of establishing a company in this free zone:

Advanced Regulatory Environment: The Dubai International Financial Centre has a sophisticated and independent legal system based on international trade laws and British laws, providing an advanced and transparent regulatory environment.
Tax Exemptions: Companies in the Dubai International Financial Centre benefit from tax exemptions including no tax on profits, which enhances corporate profitability and reduces operating costs.
Easy access to global markets: Thanks to its strategic location near Al Maktoum International Airport, the center provides easy access to global financial markets, enhancing the efficiency of international shipping, transportation and trade operations.
Advanced Infrastructure: The center has a modern infrastructure and advanced facilities, including offices, data centers and commercial facilities, that support companies in achieving their goals and improving their operational efficiency.
Specialized banking and legal services: The center provides specialized banking and legal services that include global banks and experienced law firms, which contribute to facilitating financial and commercial transactions.
Transparency and clear regulations: The Centre is committed to providing a transparent business environment and clear regulations, which enhances confidence among investors and companies and contributes to creating a stable business environment.
Diversity of economic activities: The center allows the establishment of companies in a variety of economic activities including finance, legal, and consulting, allowing companies to expand in various fields.
Government Support and Advisory Services: DIFC provides comprehensive government support and integrated advisory services to help companies overcome challenges and develop their businesses.
Networking and communication opportunities: The center provides extensive opportunities to communicate and build networks with major global companies, which enhances opportunities for cooperation and growth.
Security and Stability: The center provides a safe and stable environment with a strong infrastructure to keep businesses safe and protected from economic and political risks.

At the end of our article on establishing a company in the Dubai International Financial Centre (DIFC) free zone , it is clear that this area is one of the most attractive destinations for global companies in Dubai. The Dubai International Financial Centre enjoys a prestigious reputation as a leading financial centre in the region, providing an ideal environment for financial businesses and professional services.

The Dubai International Financial Centre Free Zone offers a range of advantages that make it the ideal choice for international investors. With its advanced infrastructure, innovative commercial laws and independent legal system, the zone provides a legal framework and regulatory system that accelerate and facilitate the process of establishment and growth.

By facilitating access to global financial markets and providing advanced banking and legal services, DIFC enhances the position of global companies and maximizes their opportunities for success. The Centre also provides a transparent and innovative business environment, making it the preferred choice for many major companies, banks and financial institutions.

When setting up a company in the Dubai International Financial Centre, investors can benefit from the full support provided by the local authorities, including advice and assistance in completing the necessary procedures. The free zone also provides easy access to a wide network of business partners and specialized services, which enhances the opportunities for growth and expansion.

Ultimately, DIFC represents a powerful and integrated platform for the success of companies in Dubai, and enables investors to benefit from an exceptional business environment that supports innovation and growth.