DIFC is one of the top ten onshore financial centers in the world, providing a secure and efficient platform for businesses and financial institutions to enter and exit the region's rising markets. DIFC is the ideal foundation to take advantage of the constantly rising demand for financial and commercial services in the MENASA region due to the quality and independence of its regulator, the predominant common law framework, good infrastructure, and tax efficiency.
DIFC bridges the time zone difference between the key financial cities of London and New York in the West and Hong Kong and Tokyo in the East for a global financial center.
Thus in today’s blog Dhanguard will lay out an extensive overview regarding Dubai International Financial Center, hereinafter referred to as DIFC. So without any further ado, let’s learn!
Can DIFC firms serve clients outside of the city and across the UAE?
They can, in fact. Sheikh Mohammed bin Rashid Al Maktoum published DIFC Law No. (5) of 2021, which clarified the laws governing the advertising and supply of services and products for DIFC enterprises. The new law confirms that DIFC registered organizations can deliver services and goods outside of the DIFC if they are predominantly provided from the firm's premises in the DIFC area. Outside of the centre, promotional and marketing activities are permitted.
Specific Benefits of DIFC
The following are some of the benefits of establishing a business in the Dubai International Financial Center:
Legal and Regulatory Environment
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The legal structure encourages cross-border business.
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Foreign ownership is permitted in its whole
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Foreign personnel are not restricted.
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Capital repatriation is unrestricted.
Confidence in Counterparties
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Independent and well-respected regulator
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Independent common law judicial system institutes in English
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Legal system differs from that of the UAE
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Regulatory strategy focused on risk
Ecosystem Variation
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Deal making in the region is Vital.
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International corporations, investment funds, wealth management firms, banks, and financial institutions are all concentrated in this area.
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Law and auditing businesses of international and regional renown, as well as other professional services.
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The region's largest fund domicile.
Geographical Epicenter
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Management businesses, holding corporations, and family offices are placed near the assets they own or manage.
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The Middle East, Africa, and South Asia (MEASA) region is becoming the global economy's focal point.
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Dubai is a major player in the expanding South-South trade, particularly between Asia and Africa.
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Well-positioned to take advantage of emerging market opportunities.
Benefits from Taxes
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Beginning from 2004, there will be no tax on profits, capital, or assets for the next 50 years.
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No tax on employee’s earnings
Read More: An Overview of LLC Company Formation in Dubai
The Procedure for Applying
The procedure for applying is enumerated below-
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Formal introductions to the DIFC and the DFSA are the first step in the DIFC application procedure.
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Following the initial call, a thorough Regulatory Business Plan (RBP) is created, complete with financial predictions, for the regulator's swift evaluation.
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The regulator's comments are included into the RBP, and a comprehensive application containing rules, processes, and other related paperwork is created. All important individuals' KYC and related forms are also ready for submission.
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The formal application is subsequently forwarded to the DFSA, which reviews it for 7-10 business days before accepting it. After then, the comprehensive review process begins, which might take anywhere from 60 to 90 days to complete.
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During the evaluation, the regulator communicates with the applicant at all times, starting with a first review two weeks after the application is submitted, followed by follow-up reviews. The DFSA also meets with the SEO, FO, and CO/MLRO designates to conduct a thorough interview.
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If the application is approved in-principle, it is given a green light. After that, the applicant must meet the in-principle requirements, which include forming a legal entity, creating a bank account, and depositing the share capital into the account. Other responsibilities include finalizing auditors and acquiring professional indemnity insurance for the company.
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After that, a final filing to the DFSA is made, and the authority issues Financial Service Permissions, completing the process. The company is presently accepting orders.
Why should you consider setting up your Financial Services Company in the DIFC?
The DIFC is the region's most important financial center. The center not only provides a diverse range of financial services, but it also provides an integrated environment and a world-class standard of living. It is also well-liked in the worldwide community. There are also opportunities for new businesses. The DIFC Fintech Hive project, which serves as an accelerator for fintech startups to test their ideas and market them to potential investors, was born out of the recent focus on fintech.
Conclusion
One of the most important financial centers in the Middle East is Dubai International Financial Center (DIFC). The Dubai International Financial Center (DIFC) is home to the UAE's most prestigious financial and business institutions. DIFC provides financial enterprises with a secure and efficient business infrastructure that allows them to access both the local UAE market and the rest of the world. Dhanguard Business Consultants will help you set up your financial services or allied services firm in the DIFC. Because DIFC firms are primarily focused on finance and investment, the concerned authorities must conduct a detailed evaluation of the shareholder profile, business activities, and business model. Our business professionals will guide you through the full company formation process in DIFC. If you want to learn more about the DIFC Company Formation process, contact one of our professional consultants right away!