In the latest news in Dubai, DIFC or Dubai International Financial Centre has just introduced a new regulatory framework that leads to the formation of prescribed companies. The new regulation effectively combined Special Purpose Companies (SPCs) and Intermediate Special Purpose Vehicles (ISPVs) into one category. They would not be considered as prescribed companies that will enjoy reduced fees and more opportunities to expand in Dubai.
The new prescribed companies regulatory structure allows companies to start building their own business in DIFC with more freedom and fewer office requirements.
These companies would now include firms under the Dubai Financial Service Authority (DFSA) and those businesses considered as International Financial Services Regulator. Not only that, but Family Offices, Fintech firms, Aviation Companies and other businesses within the Holding and Investment Companies and structured finance would be eligible to fall under prescribed companies. Healthcare companies in Dubai can also possibly take advantage of this new DIFC regulation.
For existing companies, they would still continue to exist as they are but they would use prescribed companies as their additional structuring tool to set up beneficiaries or subsidiaries.
Another great development from the new regulation is the reduction of fees. This means that the annual licensing fee would now be set to $1,000 or approximately Dh3,670. Before, licensing fees may range from $1000 to $3,500. Incorporation fee would also be set at $100.
The new DIFC announcement is considered to be revolutionary by many business setup consultants in Dubai. By replacing SPCs and ISPVs and combining them in a unified business structure, more companies would be attracted to investing in Dubai. Not only that, but the DIFC announcement gives more opportunities for companies to access the Middle East, Africa, and South Asia (MEASA) region.
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