The Dubai International Financial Centre (DIFC), which is the leading global financial hub in this region, has announced new licensing classifications to make it simpler and more reasonable for companies and businesses to set up their base in the centre and do company registration in Dubai.
The following four new licencing categories have been introduced under the new Operating Law and Regulations: short-term licences, commercial permissions, restricted licences, and dual licences.
All the four new classifications have been introduced with a reduced licence fee and enhanced flexibility, thus permitting more firms to set up and do business out of the centre and do best company formation in UAE.
Khalid Al Zarouni, who is the Senior Vice President & Registrar of Companies at DIFC Authority, was of the view that the new categories of licences and fees launched under DIFC’s Operating Law and Regulations are a boon and a first of its kind in this region. This will enable all the businesses in DIFC to expand, while also boosting a better and specialized portfolio of businesses to set up in the financial centre.
The new amendments to the licencing regime are a response to market demand and to demonstrate the DIFC’s obligation to offering a nurturing business environment that is well balanced with suitable levels of protection, in compliance with international best practices.
Key highlights of the new four categories
Here are the major highlights of the four new licencing categories:
Under this category, the retail businesses and all other non-financial companies would be now able to run their businesses out of the DIFC with flexible rates and shorter timeframes. This also includes a reasonably-priced registration fee of $100 and the licence fee between $300 to $5,100 as per the duration.
This category of licenses is meant for companies interested in creating or testing new and innovative products or services in the DIFC. Companies getting this licence would benefit from a decreased registration fee of $100 and an annual licence fees that could range from $1,000 to $4,000. The objective is to offer better flexibility for innovation, advancement, testing and also access to the DIFC ecosystem, including incubator and accelerator programmes.
This category would permit both DIFC and non-DIFC companies like retail outlets, event companies, training providers and educational service providers to perform or run their main business activities in the DIFC at reasonable rates. Fees for commercial permissions vary between $100 to $2,000, depending on the activity and the duration.
This kind of licence helps non-financial and non-retail entities that are licenced by the Dubai Economic Department, and having an affiliate in the DIFC for operating from the centre. These would include law and audit firms, family businesses, consultancy firms, holding companies and corporate service providers, who would get advantage from an annual fee of $1,000.