The Dubai International Financial Centre (DIFC) is one of the world's leading financial free zones and the premier hub for financial services, professional services and wealth management in the Middle East, Africa and South Asia (MEASA) region.
What Is the DIFC?
Established in 2004 by Dubai Law No. 9 of 2004, the DIFC is a financial free zone located in the heart of Dubai. It operates as an onshore financial centre with its own civil and commercial laws, regulatory body and courts system. The DIFC is not subject to UAE federal civil and commercial law; instead, it applies a legal framework based on English common law, independently enacted and administered within the DIFC.
The DIFC is home to more than 5,000 registered companies, including more than 400 financial institutions, and employs over 40,000 professionals across finance, law, consulting and technology.
The DIFC's Legal Framework
The DIFC's legal system is one of its most important features. The DIFC has its own body of laws, covering companies, employment, insolvency, trusts, foundations, arbitration and more. These laws are broadly aligned with English common law principles, making the DIFC's legal environment immediately familiar to international businesses and investors.
The DIFC Courts are an independent, English-language common law court system with jurisdiction over civil and commercial disputes arising within the DIFC. The courts have an established body of case law and are widely respected for their efficiency and independence.
Regulatory Authority: The DFSA
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the DIFC. The DFSA is responsible for licensing and supervising financial services firms, including banks, asset managers, fund administrators, insurance companies and professional service firms carrying on regulated activities.
The DFSA applies a risk-based regulatory approach broadly aligned with international standards set by bodies including the Financial Stability Board (FSB), the Basel Committee, IOSCO and the FATF.
Types of Entities in the DIFC
The DIFC offers a range of entity types to suit different business purposes:
Company Limited by Shares
The most common DIFC entity type, suitable for regulated and non-regulated businesses. Companies may be private or public and can be 100% foreign-owned.
Limited Liability Company (LLC)
An LLC in the DIFC limits the liability of its members to their capital contributions. This structure is commonly used for professional services firms and joint ventures.
Prescribed Company (PC)
A special purpose vehicle designed for holding purposes. Prescribed Companies may not carry on business activities but can hold assets, shares in group entities, real property and other investments. Particularly popular for GCC family holding structures and co-investment vehicles.
Foundation
A legal entity without shareholders or members, used for succession planning, wealth protection and philanthropy. DIFC Foundations own their assets outright and are governed by a charter and bylaws.
Investment Company / Fund
The DIFC offers a range of fund structures for collective investment, including Exempt Funds, Qualified Investor Funds (QIFs) and Public Funds, regulated by the DFSA under its Collective Investment Rules.
Key Benefits of the DIFC
Zero Per Cent Tax
The DIFC offers a zero per cent tax rate on income and profits for qualifying entities. Under the UAE's Corporate Tax regime, DIFC entities meeting the Qualifying Free Zone Person (QFZP) criteria continue to benefit from a zero per cent rate on qualifying income.
100% Foreign Ownership
Unlike mainland UAE, the DIFC permits 100% foreign ownership of all entity types with no requirement for a local partner or sponsor.
Common Law Framework
The DIFC's English common law-based legal and judicial system is familiar to international investors and businesses, reducing legal uncertainty and facilitating cross-border transactions.
Repatriation of Profits and Capital
There are no restrictions on the repatriation of profits, dividends or capital from the DIFC.
World-Class Infrastructure
The DIFC campus offers premium office space, a vibrant business district and proximity to Dubai's international airport and financial services ecosystem.
Who Uses the DIFC?
The DIFC serves a broad range of businesses and individuals:
- Financial services firms: Banks, asset managers, fund managers, brokers, insurance companies and payment service providers seeking a regulated environment with international credibility
- Professional services firms: Law firms, accounting firms, management consultancies and corporate service providers
- Holding companies: Businesses and families using DIFC entities, including Prescribed Companies, as holding vehicles for regional and international assets
- Family offices: High-net-worth families establishing single or multi-family office structures to manage wealth professionally
- Technology and fintech companies: Businesses seeking access to DIFC's innovation ecosystem and the DFSA's regulatory sandbox framework
Getting Started
Setting up in the DIFC involves selecting the right entity type, preparing constitutional documents, registering with the DIFC Authority (DIFCA) and, where required, applying for authorisation from the DFSA.
Atlas Corporate Services provides full end-to-end DIFC setup support, from initial structuring advice through to registration, licensing and ongoing governance. Contact the Atlas team to discuss your DIFC requirements.