The DIFC is a purpose-built financial free-zone, located within the Emirate of Dubai, United Arab Emirates. The DFSA is the independent regulator of financial and ancillary services conducted in or from the DIFC, responsible for managing or distributing Collective Investment Funds (Funds).
Key Features
The DFSA’s Funds regime incorporates an Exempt Funds regime that establishes Exempt Funds in the DIFC, to be managed by either a DFSA licensed Fund Manager or an External Fund Manager.
Exempt Funds are a category introduced to the DFSA Funds Regime and replaces the existing Private Funds regime. Exempt Funds are open only to Professional Clients who make at least a minimum subscription of USD $50,000 each. Such Funds can only have 100 or fewer Unitholders and cannot be offered to the public – distribution being only by way of private placement.
Exempt Funds enjoy a fast-track registration process and attract lower regulatory requirements than a Public Fund, which is open to retail investors.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Investment Companies, PCC, Investment Trusts and Limited Partnerships |
|
No |
|
Share capital or equivalent |
|
|
· Minimum subscription |
USD 50,000 |
|
· Minimum investors |
Maximum of 100 unitholders |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
|
Yes (must be a director of the investment company) |
|
No |
|
Yes |
Tax Treatment
The DIFC provides a 40-year guarantee of zero taxes on corporate income and profits. Accordingly, no corporate income tax is imposed on the DIFC funds or on the fund manager. From an investor’s perspective, there is no withholding tax and no transfer tax.
Duration to Set Up
About 3 weeks
Distinctive Benefits of Licence
- Flexibility in vehicle structuring
- Ease and speed of establishment
- Favourable tax regime
- Conducive regulatory environment
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers