- within Accounting and Audit, Immigration and Insurance topic(s)
KEY TAKEAWAYS:
- Benefits of setting up in the DIFC and advantages of using a DIFC Active Enterprise
- What is a DIFC Active Enterprise, who can establish an Active Enterprise, business activities that a DIFC Active Enterprise can carry out
- The role of Walkers Professional Services
Walkers Professional Services (Middle East) Limited ("Walkers") is a licensed corporate services provider in the Dubai International Financial Centre (the "DIFC"). Walkers provides registered office services, directors and company secretarial services to Prescribed Companies.
Benefits of setting up in the DIFC
The DIFC was the first financial free zone to be established in the United Arab Emirates ("UAE") and has a highly sophisticated legal system based on English common law. The DIFC has its own independent judicial system and its own independent regulator, the Dubai Financial Services Authority. The DIFC complies with global best practices and international accepted laws and regulatory processes making it a clear leader for financial services in the United Arab Emirates.
What is a DIFC Active Enterprise?
An Active Enterprise is a private company that is set-up in the DIFC by a Qualifying Applicant in accordance with DIFC Regulation.
Who can establish an Active Enterprise?
An Active Enterprise can be established by any of the following Qualifying Applicants:
- A DIFC Registered Entity other than a Prescribed Company, NPIO or Foundation;
- A controlling shareholder or UBO of a DIFC Registered Entity (other than a Prescribed Company, NPIO or Foundation;
- A UAE/Emirate Government Entity, an entity 25% owned (directly or indirectly owned) by a UAE/Emirate Government Entity, or an entity otherwise controlled by a UAE/Emirate Government Entity;
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An ultimate beneficial owner that controls a DIFC registered entity; or
- A Family Operated Business.
What business activities can a DIFC Active Enterprise carry out?
The Active Enterprise can be used by for Holding Companies, Managing Office and/or Proprietry Investment Activities in the following sectors:
- Real estate;
- Agricultural, healthcare, commercial, educational, industrial and retail trade enterprises & management; or
- Oil & natural gas projects.
Advantages of using a DIFC Active Enterprise
- Option to have employees in the DIFC - in the case that the Active Enterprise or its affiliate has an office in the DIFC;
- Reduced licensed fees;
- Flexible registered address - an Active Enterprise can have its own DIFC office space, co-working desk, share office space with its DIFC affiliate or, if the entity has no employees, use an appointed corporate service provider's registered address in DIFC;
- Quick and easy, fully digital registration process;
- No attestation required for corporate documents;
- Globally competitive and attractive tax regime; and
- Zero restrictions on currency, 100% foreign ownership and capital repatriation.
The role of Walkers Professional Services
Walkers acts as a licensed corporate services provider for Active Enterprises, in accordance with the requirements of the DIFC Regulations, which includes:
- Acting as registration/incorporation agent;
- Acting as company secretary (if required);
- Providing independent directors (if required);
- Providing Economic Substance Filing Services;
- Providing administrative services (including registered office services);
- Handling filings and interacting directly with the DIFC Registrar of Companies;
- Assisting with completion of annual filings; and
- Providing strike-off and voluntary liquidation services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
