On 19th September 2016 Intermediate Special Purpose Regime (“Intermediate SPV”) was approved by DIFC Board of Directors with immediate effect.
The Intermediate SPV regime applies to entities that are already present in the DIFC provided that they meet certain criteria (see below).
Discussions with a number of DIFC entities and professional advisory firms have led the DIFC to believe there is a need for a new regime to be introduced that would enable existing DIFC companies to set up their intermediate vehicles to bridge their DIFC and other operations.
Applicants qualifying to set up an “Intermediate SPV” are limited to:
- Fund vehicles established in the DIFC pursuant to the provisions of the DIFC Collective Investment Law and rules;
- Collective investment schemes established outside the DIFC managed by a fund manager or an asset manager regulated by the DFSA; and
- Holding companies, proprietary investment vehicles (incorporated or unincorporated) and Single Family Offices, having presence in the DIFC
In order to qualify for the Intermediate SPV license, the applicant will in particular have to provide sufficient assurances to the DIFC Registrar of Companies that the Intermediate SPV applied for will be set up for the purposes that fit into the overall objectives of the DIFC.
The application process for establishment of an Intermediate SPV is simplified. No additional office space or lease arrangements are required if the applicant already has a registered office in the DIFC and incorporation fee is USD 1,000 and an annual license fee is USD 3,000 only.
