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

  • Corporate  vehicle permitted

Investment Companies, PCC, Investment Trusts and Limited  Partnerships

  • Local physical office required

No

Share capital or equivalent

·         Minimum subscription

USD 50,000

·         Minimum investors

Maximum of 100 unitholders

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes (must be a director of the investment company)

  • Fund administrator

No

  • Auditors

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