Dubai Foreign Fund

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

Foreign Funds can only be marketed in or from the DIFC by DFSA licensed Firms holding advisory or arranging authorisations. Such Firms can now market units of Foreign Funds if one of the following criteria is met:

  1. The Foreign Fund is a regulated Fund in a jurisdiction included as a DFSA Recognised Jurisdiction or the alternative criteria of equivalent regulation prescribed by the DFSA; or
  2. The Firm makes a suitability recommendation of the investment in the Units of the Foreign Fund to the particular investor, in light of that investor’s investment objectives and circumstances; or
  3. The Foreign Fund is open to 100 or fewer investors each of whom meets the Professional Client test and makes a minimum subscription of USD $50,000 and is not offered to investors by way of a public offer.

The Foreign Funds which cannot be marketed to retail investors in the home jurisdiction of that fund are prohibited from being marketed to retail investors in or from the DIFC.

 

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 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