Dubai Captive Insurance Licence

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 financial markets and affiliated financial services.

 

Key Features

The DFSA Rulebook provides for the authorisation of three classes of Captive Insurers:

  1. Class 1 Captive Insurer
  • Is designated for the insurance of risks only from its parent or related companies;
  • Requires a minimum capital of US$150,000; and
  • Is subject to a lighter prudential regime than a traditional Insurer

2. Class 2 Captive Insurer

  • Is primarily designed for the insurance of risks only from its parent or related companies but may also accept up to 20% of its business from unrelated sources;
  • Requires a minimum capital of US$250,000; and
  • Is subject to a slightly stricter regulatory regime.

3. Class 3 Captive Insurer

  • A Group Captive Insurer;
  • Requires a minimum capital of US$1,000,000; and
  • Is subject to a stricter regulatory regime reflecting the standards of a traditional authorised Insurer.

The DFIC also allows the establishment of a Protected Cell Company (PCC) which is a single company consisting of a core and a number of cells that are legally ring-fenced from each other. Each cell has its own assets and can be used to provide captive insurance for either a different company, group of companies or a specific type of risk.

  • Minimum cellular assets of US$50,000; and
  • Minimum non-cellular assets of US$50,000.

 

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

DIFC Company or PCC

  • Local physical office required

No

Share capital or equivalent

·         Minimum paid-up capital

Class 1 (USD 150,000)
Class 2 (USD 250,000)
Class 3 (USD 1,000,000)

Directors

  • Minimum number

1

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

1

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

Yes

 

Tax Treatment

The DIFC provides a 40-year guarantee of zero taxes on corporate income and profits. 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

  • 100 percent foreign ownership;
  • Zero percent tax rate on income and profits;
  • Wide network of double taxation treaties available to UAE incorporated entities;
  • Dollar-denominated environment; and
  • No restrictions on foreign exchange or capital/profit repatriation;

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