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Establishing a DIFC Prescribed Company in 2025
Dubai is a business-friendly place, and the Dubai International Financial Centre (DIFC) is a global hub for finance, innovation, and corporate structuring. One of the most popular vehicles in DIFC is the Prescribed Company (PC) - ideal for family offices, holding assets or SPV (Special Purpose Vehicle) functions.
In this guide, we will take you through the step-by-step process to set up a DIFC Prescribed Company in 2025, costs, benefits, eligibility and how you can use it for your global or UAE business needs.
What is a DIFC Prescribed Company?
A DIFC Prescribed Company is incorporated under the DIFC Companies Law No. 5 of 2018. It has a lighter regulatory framework with lower setup and operational costs. It is used for:
- Holding assets
- Corporate structuring
- Special Purpose Vehicles (SPV)
- Family businesses or trusts
- Intellectual property management
These companies enjoy DIFC's common law system and internationally recognised regulations.
Benefits of Setting Up a DIFC Prescribed Company
1. Reduced Cost & Compliance
Prescribed Companies have lower setup fees, minimal annual filings, and fewer disclosure requirements, ideal for international investors and family businesses.
2. Strategic Business Environment
Being part of the DIFC community connects your company to over 4,000 financial institutions, wealth managers, law firms, and tech startups.
3. Full Foreign Ownership
100% foreign ownership with no local sponsor required.
4. Tax Neutrality
DIFC has a 0% tax on income and profits; UAE corporate tax may apply based on income thresholds. The UAE has no capital gains, inheritance, or withholding tax.
5. Common Law Jurisdiction
DIFC applies English Common Law, so familiar to global investors and ensures a transparent dispute resolution mechanism.
Who can set up a DIFC Prescribed Company?
A DIFC Prescribed Company can only be set up by a Qualified Applicant:
- DIFC Registered Entities
- DIFC Family Offices
- DIFC Foundations or Trusts
- DIFC Fin-tech Firms or Innovation Hub members
- Government Entities (federal or local)
[Source: DIFC Companies Law No. 5 of 2018, Articles 115-120]
How to set up a DIFC Prescribed Company in 2025
Step 1 - Eligibility
Make sure you or your sponsor is a Qualified Applicant. This is mandatory.
Step 2 - Name Reservation
Submit the company name for pre-approval with the DIFC Registrar of Companies.
Step 3 - Documents
Documents required:
- Memorandum & Articles of Association (MOA)
- Passport copies of shareholders/directors
- Proof of address
- Board Resolution (if applicable)
Step 4 - Register with the DIFC Registrar of Companies
Upload all documents via the DIFC Portal and pay the fees.
Step 5 - Get Commercial License
After incorporation, apply for a Prescribed Company License. DIFC has options based on your structure's purpose (holding, financing, IP, etc.).
Step 6 - Open a Corporate Bank Account
Once licensed, open a business bank account in the UAE or internationally. Flyingcolour business setup can help with this.
Common Use Cases for DIFC Prescribed Companies
- Holding shares in UAE and foreign entities
- Managing international intellectual property rights
- Owning UAE real estate through SPV models
- Succession planning via trusts or family foundations
- Facilitating cross-border investment deals
DIFC Prescribed Company vs SPV: What's the Difference?
|
Criteria |
DIFC Prescribed Company |
DIFC SPV |
|---|---|---|
|
Eligibility |
Only Qualified Applicants |
Broader eligibility |
|
Use Case |
Primarily holding & structuring |
Asset protection, financing |
|
Regulatory Oversight |
Lighter |
Moderate |
|
Cost |
Lower |
Moderate |
Legal & Regulatory Notes
DIFC Prescribed Companies are governed by:
- DIFC Companies Law No. 5 of 2018
- DIFC Operating Law No. 7 of 2018
- UAE Federal Decree-Law No. 32 of 2021 (Commercial Companies Law) - if setting up UAE mainland holding entities
Always consult with an approved Registered Agent or Corporate Service Provider for up-to-date compliance requirements.
Why Flyingcolour Business Setup?
- 20+ years of UAE market experience
- 3000+ Google reviews with 4.9-star rating
- Registered service provider with DIFC
- Transparent pricing, no hidden costs
- Full support in setup, banking and compliance
- Global client portfolio and multi-lingual support
Whether you're looking to hold international assets or structure a family office, we help you every step of the way, from DIFC registration to ongoing compliance.
Frequently Asked Questions (FAQs)
Q1: Can a non-resident set up a DIFC Prescribed Company?
Only through a qualified DIFC-registered entity or agent like Flyingcolour. Non-residents can't directly own one unless they qualify through affiliation.
Q2: Can I use a DIFC Prescribed Company to buy property in the UAE?
Yes, especially for asset structuring and holding purposes, depending on the jurisdiction of the property.
Q3: Are DIFC Prescribed Companies tax-free?
Yes, currently they enjoy 0% corporate and personal tax within the DIFC. UAE corporate tax may apply based on income thresholds, so expert guidance is essential.
Q4: Do I need an office to register a DIFC Prescribed Company?
No, these entities don't need a physical office space, making them perfect for cost-effective holding setups.
Therefore, to learn more about the Step-by-Step Guide to Establishing a DIFC Prescribed Company in 2025, Book a free consultation with one of the Flyingcolour team advisors.
The article was published on 30/04/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!
If succession or asset-holding is the main objective, compare this structure with our DIFC Foundation formation service.
