Do you know that the DIFC was the first-ever financial Free Zone in the UAE? It is one of two free zones in the country and is also internationally-known for its world-class facilities and services. The initial set up was done in 2004, and today, it has expanded and developed into one of the most recognizable and successful free zones in the kingdom.
It provides all the benefits of a free zone like 100 percent foreign ownership along with no income or profit tax at all. In addition, DIFC especially caters to all the financial companies and is governed by the Dubai Financial Service Authority (DFSA).
It does not actually rely on the rules and legislation found on the UAE or Dubai mainland, because the DFSA makes provisions that are specific to the particular free zone.
The New Version of the DIFC Companies Law
The new law was announced and enacted by the DIFC President, who also happens to be the Vice President of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum.
The amendments include:
- There are two new company forms that can be established in the DIFC;
- New duties can be added, or changes can be made to the current responsibilities of the directors of companies;
- New ultimate beneficial ownership registration information has been added, which all the companies should provide to the DIFC authorities.
Now, the new company types introduced would actually replace LLCs and share limited companies and are PLC’s, which are typically public companies; LTD’s which are basically private companies; and other recognized company forms like branch companies.
The director duties and roles were not so clear earlier, but now, an expansion of the same has been provided. There are some new responsibilities, which involve the promotion of a company’s achievements, avoiding conflicts of interest, and also applying their knowledge and experience in helping their business to grow.
The general changes though are not on a large scale but aim to work upon the already built foundation provided by the DIFC. The amendments are expected to be received well, especially because it would not require too much effort from current companies and would ensure a more regulated and controlled environment in the free zone.
In case you need to know more about new company regulations, any information about how to set up a company in the free zones, or professional assistance for company formation in Dubai, do get in touch with us and we would be happy to help.
