KEY TAKEAWAYS:
- Benefits of setting up in the DIFC and advantages of using a DIFC Prescribed Company
- What is a DIFC Prescribed Company, who can establish an Prescribed Company
- The role of Walkers Professional Services
Walkers Professional Services (Middle East) Limited ("Walkers") is a licensed corporate services provider in the Dubai International Financial Centre (the "DIFC"). Walkers provides registered office services, directors and company secretarial services to Prescribed Companies.
Benefits of setting up in the DIFC
The DIFC was the first financial free zone to be established in the United Arab Emirates ("UAE") and has a highly sophisticated legal system based on English common law. The DIFC has its own independent judicial system and its own independent regulator, the Dubai Financial Services Authority. The DIFC complies with global best practices and international accepted laws and regulatory processes making it a clear leader for financial services in the United Arab Emirates.
What is a DIFC Prescribed Company?
Prescribed Companies are passive holding companies established to ring-fence and isolate assets and liabilities from financial and legal risk.
Who can establish an Active Enterprise?
An Prescribed Company can be established in the below scenarios:
- Where the Prescribed Company is controlled by:
- A GCC citizen or an entity controlled by a GCC citizen;
- An entity that has any class of its securities listed on a securities exchange in the GCC;
- Any GCC Government entity;
- Registered Persons, namely, those registered DIFC entities which are not PresCos or NPIOs; or
- An Authorised Firm holding a license from the Dubai Financial Services Authority (DFSA) or a Recognised Financial Services Regulator;
- Where the Prescribed Company is established or continued in the
DIFC for the purpose of holding legal title to, or controlling one
or GCC Registrable Assets - i.e. an asset or property interest that
must be registered with a GCC Authority to establish legal
ownership, secure rights, or claims against it, and to provide
public notice (e.g. a share certificate, commercial licence, title
deed, etc). of such interests, including, but not limited, to:
- Land and real property;
- Shares in companies;
- Partnership interests;
- Intellectual property; and/or
- Aircraft and maritime vessels;
- Where the Prescribed Company is established or continued in the
DIFC for a Qualifying Purpose:
- An Aviation Structure;
- A Crowdfunding Structure;
- An Intellectual Property Structure;
- A Maritime Structure; or
- A Structured Financing;
- Where the Prescribed Company established or continued in the DIFC has a Director that is an employee of a Corporate Service Provider and that Corporate Service Provider has an arrangement with the DIFC Registrar to carry out certain AML/ compliance functions on behalf of the Prescribed Company.
Advantages of using a DIFC Prescribed Company
- Reduced licensing fees;
- Flexible regsitered address;
- Quick and easy, fully digital registration process;
- No attestation required for corporate documents;
- Globally competitive amd attractive tax regime;
- Zero restrictions on currency 100% foreign ownership and capital repatriation; and
- Domicile of incorporated companies transferable to and from DIFC.
The role of Walkers Professional Services
Walkers acts as a licensed corporate services provider for Prescribed Companies, in accordance with the requirements of the DIFC Prescribed Company Regulations, which includes:
- Acting as registration/incorporation agent;
- Acting as company secretary (if required);
- Providing independent directors (if required);
- Providing Economic Substance Filing Services;
- Providing administrative services (including registered office services);
- Handling filings and interacting directly with the DIFC Registrar of Companies;
- Assisting with completion of annual filings; and
- Providing strike-off and voluntary liquidation services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.