Are you looking to establish a regulated firm in the Dubai International Financial Centre (DIFC)? If so, it’s essential to understand the costs involved in this process. Setting up a regulated firm in DIFC can be a complex and expensive endeavor, but with the right information and guidance, you can navigate this process successfully. Our team of experts is here to guide you through the process every step of the way. With our extensive experience and knowledge of the DIFC regulatory environment, we can help you set up your firm efficiently and effectively.
- What is DIFC?
- Why Choose DIFC?
- Why setup a financial services firm in DIFC?
- Specific Advantages for Regulated Firm in DIFC
- Step-by-Step Guide to Setting Up Your Regulated Firm in DIFC
- Cost of setting up a regulated firm in DIFC
- Why Choose Us for Setting Up Your Firm in DIFC?
- How Can We Help You?
- Connect with Neeja Corporate Services
- FAQS about Regulated Firm in DIFC
- Related Articles
What is DIFC?
The Dubai International Financial Centre (DIFC) is a leading financial hub in the Middle East, Africa, and South Asia region. Established in 2004, DIFC is home to a vibrant ecosystem of financial institutions, multinational corporations, and professional service providers. It offers a robust regulatory framework, modern infrastructure, and a supportive business environment, making it an attractive destination for businesses looking to expand their operations in the region.
Why Choose DIFC?
Setting up a regulated firm in DIFC comes with a host of benefits. These include:
- Strategic Location: DIFC is strategically located between the East and West, making it an ideal hub for businesses looking to expand globally.
- Regulatory Framework: DIFC has a robust regulatory framework that adheres to international best practices, providing firms with a stable and secure operating environment.
- Tax Benefits: Firms operating in DIFC are exempt from corporate and personal income taxes, providing significant cost savings.
- Access to Markets: DIFC provides firms with access to a wide range of markets in the region, allowing them to grow and diversify their business.
- Professional Support: DIFC offers a range of support services, including legal, financial, and administrative support, to help firms establish and grow their presence in the region.
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Why setup a financial services firm in DIFC?
Establishing a financial services firm in DIFC offers multiple advantages. The DIFC stands out as a premier financial center in UAE, providing a various collection of financial services along with a cohesive environment and exceptional quality of life. It enjoys a strong reputation globally as well.
Additionally, there are great opportunities for startups. The recent focus on fintech has given rise to the DIFC Fintech Hive industry, which acts as an accelerator for fintech companies to trial their products and present them to potential investors.
Specific Advantages for Regulated Firm in DIFC
Here are several key benefits of setting up operations in the Dubai International Financial Centre:
FRAMEWORK:
The legal structure facilitates international transactions.
Complete foreign ownership is allowed, with no limits on capital repatriation.
There are no restrictions on hiring foreign employees.
TAX EFFICIENCIES:
For 50 years, there is no tax on profits, capital, or assets.
Personal income is also tax-free.
CONFIDENCE:
The regulatory body is highly respected and operates independently.
The judicial system is based on common law and conducted in English.
It operates separately from the civil courts of the UAE.
The regulatory approach is based on risk assessment.
ECOSYSTEM:
The region is a key player in deal-making activities.
There is a concentration of global financial institutions.
It offers top-tier regional and international professional services.
It is recognized as the premier fund domicile in the area.
GEOGRAPHIC EPICENTRE:
Management offices, holding companies, and family offices in the GCC are situated near their assets.
The UAE is pivotal in enhancing global trade between Asia, Africa, and the West.
It is strategically positioned to leverage opportunities in emerging markets.
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Step-by-Step Guide to Setting Up Your Regulated Firm in DIFC
- Choose Your Business Structure: The first step in setting up a regulated firm in DIFC is to decide on the most suitable business structure for your venture. Whether you opt for a limited liability company, branch office, or partnership, it is crucial to consider the legal implications and requirements associated with each.
- Obtain a Commercial License: To operate legally in DIFC, you will need to obtain a commercial license from the DIFC Authority. The license will specify the scope of your business activities and the regulatory requirements you must adhere to.
- Secure Office Space: As a regulated firm, you are required to have a physical presence in the DIFC. You can choose to either lease office space within the financial center or set up a physical office in a location approved by the DIFC Authority.
- Submit Regulatory Applications: Once you have finalized your business structure, obtained a commercial license, and secured office space, you will need to submit regulatory applications to the DFSA. These applications will include details of your firm’s shareholders, directors, and senior management, as well as information on your business activities and risk management policies.
- Comply with Regulatory Requirements: After obtaining regulatory approval, it is essential to ensure ongoing compliance with the DFSA’s regulations. This includes maintaining accurate financial records, submitting periodic reports, and undergoing regular audits to demonstrate your firm’s adherence to regulatory standards.
Cost of setting up a regulated firm in DIFC
Setting up a regulated firm in DIFC involves several initial costs that you should know. These costs typically include registration fees, licensing fees, legal fees, office rent, and other miscellaneous expenses. It’s essential to budget for these costs beforehand to avoid any financial surprises down the line.
Establishing a DIFC Regulated Firm requires several key interactions:
Dubai Financial Services Authority (DFSA)
The DFSA oversees the evaluation and approval of all financial services applications. The associated costs vary based on the specific activities requested, categorizing applicants into one of five groups.
Typically, DFSA fees consist of two main components: an application processing fee and an annual licensing fee.
Application fee: begins at US$ 15,000 for a Category 4 license application.
License fee: also starts at US$ 15,000 for a Category 4 license.
There are special provisions for Fund Management activities, starting at US$ 5,000, and Crowdfunding activities, which begin at US$ 10,000.
Registrar of Companies (DIFC ROC)
The ROC assists in establishing the legal framework for the DIFC Regulated Firm. Shareholders can be either individuals or corporations, with various options available, including ‘Private Company Limited by Shares’ and ‘Limited Liability Partnerships’. For a Private Company Limited by Shares, the setup costs include:
Name reservation application (2 working days): US$ 800
Incorporation application for a Private Company Limited by Shares (5 working days): US$ 8,000
Commercial License upon Incorporation (5 working days): US$ 12,000 (annual fee)
Data Protection
As part of the registration process for a new entity in the DIFC, a data protection notification is required. The associated costs are:
Registration fee: US$ 500
Annual renewal fee: US$ 250
Office Spaces
All entities registered in the DIFC must secure a physical office. Options include the Gate and nearby buildings, as well as other structures within the DIFC, such as Emirates Financial Towers, Central Park, Park Avenue, Burj Daman, and Currency House.
Rental prices vary based on the chosen space and building. Here are some indicative rates:
DIFC Business Centre – starting from US$ 35,000 for a two-desk office.
DIFC Fitted Offices – starting at US$ 55 per square foot.
Other buildings – starting from US$ 32,000 per year.
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Why Choose Us for Setting Up Your Firm in DIFC?
When it comes to setting up a regulated firm in DIFC, experience and expertise matter. Our team has a proven track record of helping businesses establish themselves in DIFC successfully. Here are some reasons to choose us for setting up your firm in DIFC:
- Expert Guidance: Our team has extensive knowledge of the DIFC regulatory environment and can provide you with expert guidance throughout the process.
- Efficiency: We understand the importance of time when setting up a business. With our efficient processes, we can get your firm up and running quickly.
- Tailored Solutions: We understand that every business is unique. That’s why we provide tailored solutions to meet your specific needs and requirements.
How Can We Help You?
Setting up a regulated firm in DIFC with us is a seamless process that involves several steps. Here’s how we can assist you every step of the way:
- Initial Consultation: We sit down with you to understand your business objectives, investment plans, and regulatory requirements.
- Business Incorporation: We help you register your firm in DIFC, including obtaining the necessary licenses and permits.
- Compliance Support: We provide ongoing support to ensure that your firm remains compliant with the regulations governing the financial services industry in DIFC.
- Expansion Assistance: As your business grows, we assist you in expanding your operations and exploring new opportunities within DIFC and beyond.
- Networking Opportunities: We connect you with key stakeholders, industry experts, and potential partners to help you build a strong network and grow your business.
In conclusion, Setting up a regulated firm in DIFC with us is a smart choice for businesses looking to establish a presence in one of the fastest-growing financial centers in the world. Our expertise, experience, and commitment to excellence make us the perfect partner for your business ventures in DIFC. Get in touch with us today and take the first step towards achieving your business goals in DIFC!
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Connect with Neeja Corporate Services
Are you looking to a new company register in Dubai but feeling overcome by the registration process? Don’t worry, you’re not alone. Setting up a business in a foreign country can be challenging, but with the right guidance and support, it doesn’t have to be a stressful experience. Neeja’s business setup services offer complete support and serve as a one-stop shop for new company register in DIFC. We provide a wide range of value-added services, such as Regulated Firm in DIFC and VAT registration. Over the years, we have successfully advised many new entrepreneurs to make their business dreams a reality.
To book a free consultation, call on +971 43243031. You can also send a WhatsApp message at +971 50 465 2843. To connect over email, send us your query at incorp@neejacs.com.
FAQS about Regulated Firm in DIFC
Can foreigners set up a regulated firm in DIFC?
Yes, foreigners can set up regulated firms in DIFC. The regulatory environment in DIFC is designed to attract international businesses.
How long does it take to set up a regulated firm in DIFC?
The timeline for setting up a regulated firm in DIFC can vary depending on various factors such as the legal structure chosen and the complexity of the business. Our team will provide you with a detailed timeline based on your specific requirements.
What are the benefits of setting up a regulated firm in DIFC?
Setting up a regulated firm in DIFC offers numerous benefits, including access to a global financial network, tax advantages, and a business-friendly regulatory environment.
