Dubai International Financial Centre DIFC

Dubai International Financial Centre (DIFC)

The Dubai International Financial Centre (DIFC) is one of the most advanced financial centres in the world and the leading international financial centre for the Middle East, Africa and South Asia (MEASA). In 2004, the DIFC came into existence with its own laws, regulations, courts, and facility arbitration. The DIFC was established to be a recognized hub for institutional finance and a regional gateway for capital and investment. The laws are principle-based, allowing for the creation of subsidiary legislation such as regulations and rules. Laws have been enacted that in effect constitute a “commercial code”. These laws include the Companies Law, the Contracts Law, the Arbitration Law, and the Bankruptcy Law, which are administered by the DIFC Authority. Other laws deal with the application of civil commercial law in the DIFC.

The DIFC is intended to be a well-regulated hub for commercial and investment banks, and other financial institutions that wish to take advantage of the wealth of opportunities in the region by providing services in respect of underwriting, mergers and acquisitions, venture capital/private equity, foreign exchange trading, trade finance, capital market, and Islamic finance operations

The following are the activities in DIFC that you can establish:

DIFC is a wholesale financial centre that caters mainly to institutional investors. Serving retail clients is not the primary objective of the DIFC. DIFC focuses on the following sectors:

• Banking Services:
• Capital Markets
• Asset Management & Fund Registration
• Insurance and Reinsurance
• Islamic Finance
• Business Processing Operations
• Ancillary Service Providers

Advantages of establishing a business in DIFC

1. 100 percent foreign ownership
2. Zero percent tax on income and profits
3. Freedom to repatriate capital and profits
4. Most modern operational atmosphere
5. Availability of skilled workforce/ professionals
6. Independent regulatory agency (Dubai Financial Services Authority)
7. US Dollar dominated environment

Setting up a business in DIFC

Individuals, entrepreneurs, and businesses who were interested in setting up operations in DIFC are required to submit an application to DIFC’s regulatory body, DFSA which is considered an independent regulator of financial and ancillary services conducted in and from DIFC. Moreover, these grants licenses and regulates the activities of all banking and financial institutions in DIFC.

The process of setting up in DIFC comprises the following three stages:

1. DIFC Review and Approval
2. DSFA Approvals
3. ROC Registration:

The overall process below approach taken by DIFC and DFSA in the approval process is to ensure the suitability and appropriateness of the business plan, personnel, systems, and controls that the approved company will apply:

• 1st Initial meeting with the DIFC
• 2nd Submission of the Letter of Intent
• 3rd Preparation of the business plan, related financials, and compliance manual
• 4th Submission of the draft to DIFC
• 5th Finalization of application forms, policies, procedures, etc
• 6th Payment of DFSA fee
• 7th Formal submission to DFSA, along with client meeting with DFSA
• 8th DFSA Initial interview and comments
• 9th In-principle approval of the DFSA
• 10th ROC Registration process
• 11th Submission of Legal documents to ROC, along with the related lease of office space
• 12th Opening of bank account and transfer of share capital
• 13th Receipt of commercial license from the ROC
• 14th Issuance of share Certificate and press release by the DFSA17th End of process