The DIFC Free Zone is a preferred destination for global companies looking to achieve success and growth. The center provides modern infrastructure and innovative legal and tax systems, creating an ideal environment for companies in a variety of sectors. Establishing a company in the DIFC Free Zone represents an exceptional investment opportunity in the heart of global business. This center has a unique position that makes it one of the most important global financial centers, as it provides companies with opportunities to expand and innovate in a sophisticated and advanced business environment. The procedures for establishing companies in this center allow businessmen to access a global financial market and international investment and financing networks. In addition, the DIFC is a platform for innovation and exchange of experiences, attracting talent and creative minds from all over the world. Through this article, we will explore the details of the procedures and benefits offered by setting up companies in the DIFC Free Zone, highlighting the pioneering environment And economic opportunities available to investors and businessmen.
Types of entities registered in the Dubai International Financial Centre
- Limited Company by Shares (LTD): Limited companies are allowed to raise capital by offering shares in the form of an IPO and can also issue securities. It is considered necessary 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 considered necessary to have at least one shareholder.
- Recognized Companies (RC): A RC company is a registered branch of a foreign company already located in the DIFC. A recognized company is not considered a separate legal entity; Rather, it is merely an extension of a company established abroad.
- Limited Liability Partnership (LLP): This partnership is concluded by two or more people, all of whom are part of this partnership. Members’ responsibilities are limited to the extent of their contribution to the partnership.
- General Partnership (GP): This partnership is held by two or more people, and all partners are jointly and severally liable for the debts and obligations of the partnership.
- Limited Partnership (LP): This partnership is concluded by two or more people, 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: According to their charter, these companies must be licensed to operate under the umbrella of the DIFC Authority.
Steps to establish a company in the Dubai International Financial Center
Establishing a company in the DIFC Free Zone requires following several steps. Here’s an overview of the basic procedures:
- Determine the type of company: Determine the type of company that suits your business, such as a local company, a free company, or a sole proprietorship.
- Choosing a Business Name: Choose a unique, non-duplicate name that complies with local laws and regulations. It is preferable to check the availability of the name before starting the registration process.
- Submit a registration application: Submit an application to register your company at the relevant registration office in the Dubai International Financial Centre.
- Define the business activity: Provide accurate details about the company’s activity and the services it will provide.
- Determine the company structure and shareholders: Determine the company structure and percentages of shareholders in the case of a partnership.
- Select Company Location: Choose where you would like to establish your company within the DIFC.
- Determine capital: Provide details about the capital planned to be allocated to the company.
- Signing agreements: Sign the necessary agreements and legal documents related to establishing the company.
- Receive approval: Wait until you receive final approval from the relevant authorities in the DIFC.
- Receiving License: After approval, you will receive your final business license.
- Compliance with tax obligations: Ensure compliance with all local tax obligations in the DIFC.
- Opening a bank account: Open a company bank account in one of the approved banks in the region.
Costs of establishing a company in the Dubai International Financial Center Free Zone
The costs of setting up a company in the Dubai International Financial Center (DFSA) depend on several factors, including the type of company and the activities you intend to undertake. Here are some key points that can affect incorporation costs:
- Company type: There may be different costs for setting up a sole proprietorship, limited company or investment company.
- Economic activity: Determining licensing costs depends on the type of activities that the company will undertake.
- Capital size: You may need to determine the capital needed to establish the company, according to DFSA requirements.
- Hosting offices: If you need an office on a DFSA site, you will have additional hosting costs.
- Legal and advisory services: You may need the services of legal advisors or consultants to guide you through the incorporation process.
- Banks and bank accounts: This can include the costs of opening a bank account and banking services.
- Government fees: Government fees include company registration costs and annual fees.
- Maintenance costs: You should take into account the company’s annual maintenance costs, including license and license renewals.
Licenses to establish a company in the Dubai International Financial Center Free Zone
Establishing a company in the DIFC Free Zone requires obtaining the necessary licenses. Here are some licenses that may be necessary, and they vary depending on the type of company and its activity:
- Business License: The company must obtain a license appropriate to its specific business activity. Activities must be defined accurately and approval must be obtained from the relevant authorities.
- Company license: The company must obtain an official license from the competent government authorities in the free zone.
- Incorporation license: Founders need an official license proving the company’s incorporation, details of shareholders, and authorized activities.
- Infrastructure License: Some companies may require special licenses to take advantage of the advanced infrastructure available in the free zone.
- Work License: Company employees are required to obtain a work license that allows them to work in the region.
- Advertising and marketing license: If the company plans to conduct advertising or marketing campaigns, it may need a special license.
How can you establish a company in the free zone?
Establishing companies in the free zones in Dubai is much easier than establishing a company inside Dubai, as it can be 100% owned by any nationality, and the presence of a partner or sponsor who is a citizen of the UAE is not required, as the company is registered as a free zone establishment or it is a company belonging to The free zone or a branch or representative office in the free zone in Dubai. In this case, it is possible for the main company to be outside the Emirates, and it is not required to be inside the Emirates. The companies located within the free zone are regulated through the authority responsible for the free zone, which is the one that issues any licenses to the company. This depends on the location of the free zone and the activity it carries out. The type of license issued by the responsible authority varies according to the commercial activity. A company can be established in the free zone by following some steps, including:
- Choose the company’s location
- Agreeing on the trade name, as it is the name that distinguishes one company from another.
- Obtaining the company’s business license.
- Obtaining initial approval to start work.
- Commercial license registration.
- Complete the requirements for a commercial license and obtain it.
Establishing a company in the free zone
The UAE is distinguished by the fact that it has more than 40 free zones in addition to some areas that are being established. Therefore, establishing a company in a free zone is one of the difficult matters facing the investor, as it is difficult to choose between many areas. Therefore, Kaber Company, through its great experience in business management, undertakes By helping many investors choose the appropriate free zone for their commercial activity, it also helps in establishing and establishing a company in the free zone in the shortest time and at the lowest costs.
Advantages of establishing a DIFC company
- 100% retransfer of capital and profits abroad
- 100% exemption from import and export duties
- No tax is imposed on corporate gains or personal income in most cases
- No restrictions on the use of currency
- Low cost of operations
- Pre-built offices, factories and warehouses
- Fast establishment and licensing procedures
- Single window for customs clearance; That is, multiple administrative services in one station
- Provides labor recruitment assistance and additional support services, such as sponsorship and on-site housing
- Abundant and inexpensive energy
- Excellent infrastructure, communications, and attractive work environment
