Business set up in Dubai International Financial Centre (DIFC) free zone comes with a lot of advantages over other free zones in Dubai. DIFC free zone is ideal for setting up financial institutions to operate financial, banking, and asset management services in the Middle-east region. In light of the COVID-19 pandemic, DIFC free zone authority has introduced an economic stimulus plan to encourage investors for DIFC company formation for maximum benefits. As part of the plan, there are currently no annual license fees for new companies and a 10% discount of renewal fees for the license renewal. It also offers investors to pay the license fees in installments to keep up with their business expenses.

In addition to the above advantages, investors DIFC free zone offers the following benefits to the investors:

• Postponement of the lease period and cancelation of registration fees for a period of six months.
• A well-established financial services ecosystem for banking firms, law firms, insurance companies, and other financial institutions.
• 100% ownership to the foreign investors
• DIFC allows business set up with just one shareholder
• No restriction on capital repatriation
• No restrictions or limitations on the hiring of foreigners
• No tax on income and profits
• No corporate and personal taxes
• Access to the UAE’s double taxation treaties
• Independent civil and commercial laws and legal framework
• Complete confidentiality of business accounts and records

Business activities in DIFC free zone

Investors are allowed to operate both regulated and non-regulated financial and non-financial activities as per the DIFC guidelines and regulations. Regulated business activities in DIFC free zone include:

• Banking
• Investment
• Finance
• Asset and wealth management, etc.

 Non-regulated and non-financial business activities in DIFC free zone include:

• Consultancy services
• Retail and convenience stores
• Art galleries
• Advertisement and production
• Recruitment and leasing brokerage
• Electronics and technology firms
• Product and services, etc

In order to set up the above business activities in DIFC free zone, investors can apply for the following business licenses to operate professional and financial services.

• Professional services
• Regulated / non-regulated business
• Proprietary investment
• Holding / regional headquarters

Company formation in DIFC free zone

DIFC company formation and business registration process are governed by DIFC Authority (DIFCA) through a tailored process. Social Consultancy Services helps investors incorporate their companies and get business licenses easily and quickly.  The whole company formation process takes around eight months while securing a business license. There are three main steps that every investor must follow for DIFC company formation:

Pre-Incorporation process: This stage includes the consultation phase, business planning phase, initial assessment, and document preparation before the company incorporation. It takes approximately 1.5 months to complete the whole process with professional business consultants and experts.

Incorporation process: The incorporation process involves document attestation, document submission, in-principal approval, entity registration, bank account opening & deposit of capital, license issuance, and office set up. It takes around 6 months to complete the whole process to register your company and get the business license.

Post-Incorporation process: After the company incorporation, investors also need to complete VAT registration, VISA approval, and fulfill statutory compliances as per the company laws in the country to operate legally as per the DIFC regulations.

So, these are the basic things that you should know when planning to set up a business in Dubai International Financial Centre (DIFC) free zone. If you are looking for free zone business opportunities in Dubai, Social Consultancy Services can help you with the DIFC company formation process for the maximum returns out of your investment. Contact us to know more about the business setup process in Dubai and other emirates in UAE for global business opportunities.