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DIFCCompany Formation
Plan a company in the Dubai International Financial Centre (DIFC), the common-law financial free zone, for holding structures, family wealth, funds and regulated financial services.
- Common Law
- Holding Structures
- Foundations
- Advisory Service
- Tax Planning
Published Updated
DIFC: Dubai’s common-law financial centre
DIFC is a financial free zone with its own English-language common-law framework and its own courts. Financial services are regulated by the Dubai Financial Services Authority (DFSA); other companies are registered with the DIFC Registrar of Companies.
DIFC is the natural home for banks, asset managers and fintechs, but it is also used for holding companies, family foundations and special purpose vehicles that benefit from common-law certainty. We advise on whether DIFC is the right home for your structure and plan the tax and banking around it.
Best known for: finance, funds & holding structures
Why DIFC
DIFC gives international investors a legal system they recognise, in the middle of Dubai.
Common-law framework
DIFC has its own civil and commercial laws based on English common law, applied by the independent DIFC Courts.
Independent regulator
Financial services are licensed and supervised by the DFSA, which follows international standards.
Holding & SPV structures
Prescribed companies and foundations offer efficient vehicles for holding assets and family wealth.
Financial ecosystem
Banks, asset managers, law firms and auditors are all on the doorstep.
100% foreign ownership
Full ownership with no local partner, and free repatriation of profits and capital.
Fintech & innovation
An innovation licence and a large fintech community support early-stage technology businesses.
Ideal for
- Holding companies & SPVs
- Family offices & foundations
- Asset & wealth managers
- Fintech businesses
- Regional headquarters
DIFC Licence Routes
Which route applies depends on whether your business is regulated and what the entity is for.
Non-Financial Licence
For companies not offering financial services, registered with the DIFC Registrar of Companies.
- Consultancy
- Professional services
- Technology
- Regional headquarters
- Retail & hospitality in DIFC
Regulated Financial Services
For businesses that need a DFSA licence.
- Asset & fund management
- Advisory & arranging
- Banking
- Insurance
- Custody
Holding & Wealth Structures
For vehicles that hold assets rather than trade.
- Prescribed companies
- Foundations
- Holding companies
- Special purpose vehicles
- Family office structures
Legal Structures in DIFC
DIFC offers more entity types than most free zones, reflecting its common-law framework.
01
Private Company (Ltd)
The standard DIFC company, with shareholders’ liability limited to their shares.
02
Prescribed Company
A lighter structure for holding, SPV and similar purposes that meet the qualifying conditions.
03
Foundation
A separate legal entity for holding assets for family, charitable or succession purposes.
04
Branch of a Foreign Company
An overseas company operating in DIFC under its own name.
05
Limited Liability Partnership
For professional firms that want partnership flexibility with limited liability.
06
Public Company
For larger businesses planning to offer shares to the public.
How We Help You Set Up in DIFC
DIFC is an advisory jurisdiction for us: we design the structure and coordinate the work around the application.
- 01
Define the Purpose
Holding, wealth, operating or regulated business: the purpose decides the entity and the route.
- 02
Design the Structure
Entity type, ownership and Corporate Tax position planned with you, alongside your lawyers where needed.
- 03
Prepare the Documents
Shareholder and UBO documents collected, notarised and attested, with a business plan where required.
- 04
Application & Approvals
We coordinate the application with DIFC, and with the DFSA where your activity is regulated.
- 05
Registered Office
Office or registered address in DIFC, depending on the entity and whether you need visas.
- 06
Registration Issued
DIFC issues the certificate of incorporation or registration and the commercial licence.
- 07
Bank, Visas & Tax
Bank application, visas where applicable and Corporate Tax and VAT registration handled alongside.
Documents Required for DIFC Setup
What we need depends on whether each shareholder is a person or a company. Documents issued abroad must be notarised and attested for use in the UAE; we arrange this for you.
Individual Shareholders
- Passport copy of each shareholder and manager
- UAE visa or entry stamp, if any
- Emirates ID, if resident in the UAE
- Passport-size photo
- Three trade name options
- Proof of home address
- Business plan, where required
Corporate Shareholders
- Certificate of incorporation or trade licence
- Memorandum & Articles of Association
- Board resolution approving the DIFC company
- Certificate of good standing
- Passport copy of the appointed manager
- Ultimate beneficial owner (UBO) declaration
Why Choose a DIFC Structure
DIFC suits structures where legal certainty and reputation matter as much as cost.
English common-law framework and courts
100% foreign ownership
Possible 0% Corporate Tax on qualifying income
Prescribed companies for holding and SPVs
Foundations for family wealth and succession
Respected, independent financial regulator
Banks and advisors on the doorstep
Tax & Compliance Position: DIFC
Companies in DIFC can pay 0% Corporate Tax on qualifying income, but only if they meet the Qualifying Free Zone Person conditions every year. We check this before you choose the zone, not after.
UAE Corporate Tax
0% on qualifying income · 9% on the rest
To be a Qualifying Free Zone Person, the company needs real substance in the zone, qualifying income, audited financial statements and arm’s-length dealings with related parties. Taxable income that doesn’t qualify is taxed at 9% above AED 375,000.
Selling to mainland customers?Most mainland revenue isn’t qualifying income. If non-qualifying revenue passes 5% of total revenue or AED 5 million, whichever is lower, QFZP status is lost for that year and the next four. We model this with you upfront.
UAE VAT
5% standard rate · same rules for services
Registration is mandatory once taxable supplies pass AED 375,000 in 12 months and optional from AED 187,500. Free zone services are taxed exactly as they are on the mainland.
Designated zone statusSome free zones are VAT designated zones, where certain supplies of goods inside or between them fall outside UAE VAT. It never covers services. We confirm how DIFC’s status applies to your trade.
Ongoing Compliance Obligations
- Corporate Tax return within 9 months of year end
- Audited financial statements (needed for QFZP status)
- VAT returns once registered
- Annual licence renewal with DIFC
- Office or flexi-desk lease renewed with the licence
- UBO register kept up to date
Sources & official references: Federal Decree-Law No. 47 of 2022 (Corporate Tax) · Cabinet Decision No. 100 of 2023 & Ministerial Decision No. 265 of 2023 (Qualifying Free Zone Persons) · Federal Decree-Law No. 8 of 2017 (VAT) · Dubai International Financial Centre (DIFC)
Where DIFC Companies Operate
Finance dominates, but DIFC hosts a wide range of holding and professional businesses.
Banking
Asset & Fund Management
Family Offices
Fintech
Insurance
Legal & Professional Services
Holding Companies
Consultancy
The TMFS Advantage
We handle DIFC setups end to end, from activity selection and DIFC licensing to a banked, visa-ready company registered for Corporate Tax and VAT.
Structure Advice
The right DIFC entity, or a cheaper alternative, for what you actually need it to do.
Package & Office Choice
Flexi-desk, office or warehouse sized to the visas you need, so you don’t pay for space you won’t use.
Application & Constitutional Documents
Application forms, resolutions and Articles prepared and filed with the zone for you.
Corporate Bank Account
Your application prepared alongside the licence and matched across our 18 partner banks.
Investor & Staff Visas
Investor, partner and employee visas with medicals and Emirates ID.
QFZP & VAT Compliance
Corporate Tax and VAT registrations, audited accounts and the yearly checks that keep 0% status intact.
Why Founders Choose TMFS in DIFC
Three things clients mention most.
Advice before you apply
We plan structure, banking and tax first, so your DIFC vehicle does what you need from day one.
One team, end to end
Licence, documents, premises, bank account, visas and tax with one consultant, from first call to renewal.
Written costs upfront
A written breakdown of government fees and our fee before you commit, with no surprises at renewal.
Compare Other UAE Free Zones
DIFC suits finance and holding structures. Other zones can cost less for trading and services.
UAE Free Zones Overview
How the UAE’s free zones compare on cost, activities, visas and tax. Start here to choose.
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IFZA
Fast, cost-efficient consultancy and services licences. The usual first company for solo founders.
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Meydan Free Zone
E-commerce and digital licences with a Dubai address and quick issuance.
Read moreRAKEZ
Ras Al Khaimah Economic Zone. Low-cost industrial, trading and service licences.
Read moreSHAMS
Sharjah Media City. Media, creative and consultancy licences, plus freelance permits.
Read moreSPC Free Zone
Sharjah Publishing City. Low-cost setup for publishing, media and services.
Read more
Ajman Free Zone
Cost-efficient trading, industrial and services licences with warehouse options.
Read moreSRTIP
Sharjah Research Technology and Innovation Park. Tech, R&D and industrial licences.
Read moreDMCC
Commodities and trading hub with strong bank acceptance. We advise on DMCC structures.
Read moreWhat Clients Say
Feedback from founders who set up with TMFS.
DIFC: Frequently Asked Questions
Common questions about setting up in DIFC.
Do I need a financial services business to set up in DIFC?
No. Many DIFC entities are holding companies, foundations or non-financial businesses. Only regulated financial services need a DFSA licence.
What is a prescribed company?
A DIFC company type for holding, SPV and similar purposes that meet set qualifying conditions. It has lighter requirements than a standard operating company.
Do you file DIFC applications?
DIFC is an advisory jurisdiction for us. We design the structure, prepare documents, coordinate the application and handle the banking, visas and tax around it.
Is DIFC or RAK ICC better for a holding company?
It depends on the assets, the banks involved and the budget. DIFC offers common law and a strong reputation; RAK ICC is simpler and cheaper. We compare both for your situation.
Will my DIFC company pay 0% Corporate Tax?
Only on qualifying income, and only if it meets the Qualifying Free Zone Person conditions every year. Other income is taxed at 9% above AED 375,000.
Can you open the company bank account?
Yes. We prepare the bank application and match it to the partner bank most likely to approve your structure.
Verification & independence
Checked against publicly available DIFC and UAE federal sources in October 2026. Time Machine Financial Services is independent of DIFC and is not affiliated with or endorsed by the Government of Dubai or any UAE authority.
Activity lists, package prices, approvals and tax rules change. Confirm the current position for your activity with DIFC and the Federal Tax Authority, or ask us, before acting on this page.
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- A straight answer on structure, cost and timeline
- A reply within one working day
- A free 20-minute consultation
Considering DIFC?
Talk to a TMFS consultant about whether DIFC is the right home for your holding, wealth or financial structure.
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