Apart from offshore formation, setting up DIFC companies is a fast-rising business alternative or option for business owners who want to expand their business reach overseas. And like offshore formation, this type of company setup offers a number of advantages for business owners. For one, DIFC companies enjoy zero tax commitment up to 50 years under Article 14 of Dubai Law 9 of 2004. These companies are also not subject to any form of auditing by the government.
And same with any offshore company in UAE, business owners are given 100% ownership of their company. The process is also pretty simple and straightforward. For those who are interested to expand their business through the DIFC company formation, here is the basic process you need to go through:
The first thing that business owners aiming to have a DIFC company should do is to consult with a company formation firm to know what kind of business and company structure would best suit their business requirements. There are a lot of businesses and company structures that are allowed in Dubai – from sole proprietorship to LLC formation. If you don’t have an idea on which of these structures would best fit your company, do an initial research or ask your prospective consultancy firm.
- Provisional approval from DIFC
Once the client and the consultancy firm agreed on what kind of company structure will be implemented, the next process would be applying for a provisional approval from the DIFC. Without provisional approval, the client will not be granted access to the online application portal to complete the incorporation.
- Prepare for full company application
If the client is given access to the portal, he can now start the full application process. The good thing about applying for a DIFC approved company is that process for full application is streamlined for convenience and ease of application. They would simply fill out the necessary fields and provide the details of the company. But be sure to prepare the following before completing the application: secure operating business location within the DIFC, prepare Articles of Incorporation, and furnished personnel sponsorship agreement with respective employees to be employed.
- Formalization of the process
Once the DIFC gives their signal, the company owner and representative would need to fly to Dubai to personally sign the Articles of Incorporation and the sponsorship agreement in the presence of a DIFC official. The application would be reviewed and once approved, the applicant will be issued commercial license and the necessary papers needed to operate.