Dubai Public 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

The DFSA’s Funds regime incorporates a Public Funds regime that establishes Public Funds in the DIFC, to be managed by either a DFSA licensed Fund Manager or an External Fund Manager.

Public Funds are open to retail investors and can be marketed by way of a public offer. Because Public Funds are open to retail investors, more extensive regulatory requirements apply to such Funds to protect retail investors. These requirements meet international standards for retail protection, in particular, IOSCO principles for regulating collective investment schemes. These include detailed disclosure in the Fund’s Prospectus to enable retail investors to make an informed investment decision relating to the Fund and independent oversight of the Fund management either by a three-member oversight committee or by the Trustee or Eligible Custodian of the Fund.

 

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

None

·         Minimum investors

None

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 1 month

 

Distinctive Benefits of Licence

  • Flexibility in vehicle structuring
  • Ease and speed of establishment
  • Favourable tax regime
  • Conducive regulatory environment

 

The Valsen Advantage

  1. End to end comprehensive service
  2. Speedy and efficient service
  3. Expert advice on structuring options
  4. Dedicated ongoing compliance support
  5. Extensive network pool of service providers