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 Qualified Investor Fund (QIF) regime that establishes Exempt Funds in the DIFC; to be managed by either a DFSA licensed Fund Manager or an External Fund Manager.
QIFs are only offered to professional investors and must have 50 or fewer Unitholders. Units are offered to persons only by way of a Private Placement and the minimum subscription is USD 500,000.
The QIF regime provides for a lighter touch regulatory approach and requires self-certification regarding the adequacy of systems and controls. QIFs enjoy a fast-track notification process where the DFSA aims to complete the process in a shorter timeframe. A QIF may be established in The DIFC by a DFSA-authorised Fund Manager or a foreign Fund Manager
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Investment Companies, PCC, Investment Trusts and Limited Partnerships |
|
No |
|
Share capital or equivalent |
|
|
· Minimum subscription |
USD 500,000 |
|
· Minimum investors |
Maximum of 50 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 2 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