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 a Public Funds regime that establishes Public Funds in the DIFC, to be managed by either a DFSA licensed Fund Manager or an External Fund Manager.
Public Funds are open to retail investors, and can be marketed by way of public offer. Because Public Funds are open to retail investors, more extensive regulatory requirements apply to such Funds to protect retail investors. These requirements meet international standards for retail protection, in particular, IOSCO principles for regulating collective investment schemes. These include detailed disclosure in the Fund’s Prospectus to enable retail investors to make an informed investment decision relating to the Fund and independent oversight of the Fund management either by a three member oversight committee or by the Trustee or Eligible Custodian of the Fund.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Investment Companies, PCC, Investment Trusts and Limited Partnerships |
|
No |
|
Share capital or equivalent |
|
|
· Minimum subscription |
None |
|
· Minimum investors |
None |
|
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 1 month
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