DIFC Introduces Business Friendly and Flexible Regulatory Regime for Prescribed CompaniesPress Release 30 Jun 2019 01:58 pm
The new regulations provide an appropriate business framework that is in line with best international practice
Dubai, UAE, 30 June 2019 – Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, has made structuring and financing faster, economical, and more flexible. Under a newly introduced regime, structures such as Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) will now be classified as Prescribed Companies.
The new Prescribed Companies regime expands the previous regime to also allow certain firms to establish themselves in the DIFC with more flexible office requirements. These include firms that are either regulated by Dubai Financial Services Authority (DFSA) or a recognised International Financial Services Regulator. FinTech firms, Family Offices, Holding and Investment Companies, as well as Aviation Companies and firms involved in structured finance will also be eligible to establish a Prescribed Company in the Centre.
Furthermore, the annual licensing fee for Prescribed Companies has been reduced to US$1,000, with an incorporation fee of US$100.
Jacques Visser, Chief Legal Officer, DIFC Authority commented: “The new Prescribed Companies regime is a very positive regulatory development that is going to make the DIFC an even more accessible jurisdiction for businesses looking to tap into the MEASA opportunity. By replacing Intermediate Special Purpose Vehicles and Special Purpose Companies regimes with a unified, simplified and more expansive regime with a very competitive cost-structure, we are well aligned with international best practices while also ensuring local market needs are met.”
DIFC is committed to continuously enhancing its legislative infrastructure in order to give its business community the certainty and access they need to capture the opportunities within the MEASA region, through Dubai.
Following the recent enactment of the new DIFC Insolvency and Employment Laws, the Prescribed Companies regime will further enhance the legal and regulatory framework at the Centre, which remains the most sophisticated and business-friendly Common Law jurisdiction in the region. The new regime was unveiled during a session with Law Firms and Corporate Service Providers (CSPs) at DIFC Conference Centre earlier today to obtain market feedback on the legislative proposal, which is currently under public consultation.