DIFC Announces Enactment of Prescribed Company RegulationsNews31 Oct 2019 09:29 am
Dubai, UAE – 31 October, 2019: Dubai International Financial Centre (DIFC), today announced that the Board of Directors of the DIFC Authority has issued the Financial Collateral Regulations and Security Regulations which will take effect on 31 October 2019.
The Prescribed Company Regulations are issued under the Companies Law, DIFC Law No. 5 of 2018 and repeals and replaces the former Special Purpose Company Regulations. Under the new regime, existing DIFC structures such as Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) will now be classified as Prescribed Companies. The Prescribed Company Regulations expands the previous ISPV and SPC regimes and enables the following firms to establish a Prescribed Company in the DIFC: firms regulated by Dubai Financial Services Authority (DFSA) or a recognised International Financial Services Regulator; FinTech firms; Family Offices; DFSA regulated Crowd Funding Operators; Holding and Investment Companies; as well as Aviation Companies and firms involved in structured financing. The Regulations also give Corporate Service Providers the opportunity to have a greater role in the establishment and annual reporting requirements of Prescribed Companies.
Furthermore, Prescribed Companies have more flexible office requirements and reduced annual licensing fees of US$1,000, and a one off incorporation fee of US$100.