Establishing a prescribed company in Dubai

In the UAE, Ogier provide incorporation and establishment services for both nonregulated and regulated entities within the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), serving a diverse clientele from fund and asset managers to financial advisors and brokerage firms.

Establishing a prescribed company in the DIFC

The DIFC has announced a significant expansion and enhancement of the existing prescribed company (PC) regime, making setting up a PC in the DIFC even more accessible and streamlined than ever before. This expansion simplifies the establishment process and broadens the eligibility criteria, offering competitive advantages such as low licensing fees and eased the office space leasing requirement. It’s an efficient choice for succession planning, asset protection, and serving as a holding company, supported by a minimal governance framework.

The DIFC stands out for its independent legal system and courts, favourable tax policies following the introduction of UAE corporate tax, 100% foreign ownership, and no currency or capital repatriation restrictions, making it an attractive option for businesses.

DIFC amendments to prescribed company regulations

The DIFC’s consultation paper, published in May 2024, proposes significant amendments to the PC regulations. These amendments aim to expand and simplify the framework under which PCs operate within the DIFC. Key proposed changes include:

• Expansion of qualifying requirements for PCs to include Gulf Cooperation Council (GCC) persons, authorised firms, DIFC registered persons, entities owning or controlling GCC registrable assets, and entities established for a qualifying purpose
• Clarification of business conduct and registered office requirements for PCs within the DIFC
• Removal of the “qualifying applicant” definition, replaced by broader criteria allowing more flexibility in PC establishment
• Introduction of a six-month grace period for new PCs to meet qualifying requirements, with possible extensions
• These amendments are intended to make the DIFC a more attractive and flexible jurisdiction for the establishment and operation of prescribed companies.

For more information on establishing a prescribed company in Dubai, read our guide.