DIFC Business Setup: Everything You Need to Know

1,081 new active registered companies joined DIFC between January and June 2025, a 32% increase on the same period in 2024.

The Dubai International Financial Centre (DIFC) is regarded as one of the best financial centres and a financial hub for the Middle East, Africa, and South Asia (MEASA) region. Since its establishment in 2004, it has enjoyed tremendous growth and is governed by private laws and the judicial system.

For startups seeking to establish and grow their business, access venture capital, and leverage cost-effective licensing solutions, this is an ideal place to register their enterprise.

DIFC: Meaning and Features

The DIFC is a free zone located in Dubai, offering a business-friendly finance, investment, and regulatory environment. It currently has four landmark projects:

• Immersive Tower: Commercial
• DIFC Square: Commercial
• DIFC Living: Commercial and residential
• DIFC Height Tower: Commercial and residential

Key Features of the DIFC Business Setup

• Independent Legal System: Based on English Common Law, overseen by the DIFC courts and the Dubai International Arbitration Center (DIAC)
• Regulatory Authority: The DIFC is regulated and overseen by the Dubai Financial Services Authority (DFSA) to maintain transparency and efficiency
• Tax Benefits: After registering your business, you can enjoy 9% corporate tax on income and profits. There is also the option to repatriate the profit freely to other countries
• DTAA Agreement: Businesses in the DIFC are eligible to take advantage of the UAE's Double Tax Avoidance Agreements (DTAA)
• Full Foreign Ownership: As the DIFC is based in the free zone, it allows businesses to have 100% foreign ownership, unlike mainland companies
• Global Financial Hub: With many banks, financial institutions, retail stores, law firms, and insurance companies (including Fortune 500 companies) set up in the DIFC, businesses can access unprecedented opportunities
• Range of Options: Access multiple residential and commercial space options, such as commercial, co-working, and serviced offices, DIFC academy venues, and event spaces.

DIFC Setup: Types of Entities That Can Register

• Company Limited By Shares (Both Private [LTD] and Public[PLC])
• Limited Liability Company (LLC)
• Branch Office of a Foreign Company
• Limited Liability Partnership (LLP)
• Limited Partnership (LP)
• General Partnership (GP)
• Special Purpose Vehicle (SPV)
• Foundation
• Non-Profit Incorporated Organisation (NPIO)

Please Note: When an LTD, LLC, LLP, or LP is registered, the Registrar of Companies (ROC) will issue a 'Certificate of Incorporation'. For a Recognised Company, Partnership, Limited Liability Partnership, or Limited Partnership, a 'Certificate of Registration' will be issued.

Important: The type of company you can register in the DIFC, and the licenses required, also depend on the function that is proposed to be served, namely, financial (banking, capital market, or investment management) and non-financial (Law Firm, Consultancy businesses, or restaurants).

Contact Kayrouz & Associates' Corporate & Commercial Law Team to start your DIFC company business incorporation process.

DIFC License: Meaning and Types

A DIFC license is required for a business entity or service to operate within the DIFC's jurisdiction. It is issued by the DIFC, but may require additional approval from other UAE government agencies, depending on the type of license.

Types of DIFC Licenses:

• Financial Service License: For regulated activities like banks, asset/wealth management, and brokerage, requiring prior approval from the DFSA.
• Non-Financial Services: Includes licenses for professional services like law, accounting, auditing, and training firms and services.
• Retail, Leisure and Hospitality Service: Used by cafes, restaurants, art galleries, retail, and convenience stores.
• AI, FinTech, and Innovation Firms: The DIFC offers a special category low-cost license for early-stage startups engaged in innovation, AI, and venture studios.
• Family Office License: Tailored for High-Net-Worth Individuals (HNIs) and family-owned businesses looking to manage wealth, succession planning, and investments in the DIFC.

Important: Each license category has different documents and eligibility requirements. Consult Kayrouz & Associates' Business Formation and Incorporation UAE attorneys before applying for a DIFC business setup license.

Understanding Business Setup in the DIFC: Step-by-Step Guide

Here's what the DIFC business setup process looks like:

Step 1: Choosing the License and Business Structure

Decide between financial, non-financial, retail, or innovation services, and select a suitable legal structure for your business. Also, check out the document and eligibility requirements. General documents include:

• Proof of trade name reservation
• Passport copies of the shareholder
• Detailed business activity plan
• Copy of third-party and UAE regulatory approval (including NOCs if applicable)

Step 2: Start Application Process and Submit Required Documents

• You can start the DIFC license process through the DIFC online portal and attach the required documents.
• You can also apply for and secure any regulatory approvals that may be required.
• You should submit lease or ownership documents of the office space (physical office space and presence are necessary for a DIFC license)

Step 3: Pay the Fees

• After you get the initial approval, you can pay the registration fees for the DIFC license for companies in the financial center of Dubai.

Step 4: Incorporation & License Issuance

• After final documentation and fee payments, DIFC's ROC issues your Certificate of Incorporation and operating license.
• The license is typically issued within 2-6 weeks.
• You can then open a corporate bank account in Dubai, hire employees, and start business operations.

DIFC License: Cost and Operation in 2025

A DIFC license cost depends on the type of business structure and activity.

• Initial Expenses: The initial cost of registration and obtaining a DIFC license can range between AED 18,000 and AED 90,000.
• Recurring Cost: Running expenses include office rental, employee visas, and accounting, auditing, and legal services.

The cost of the first year is higher compared to subsequent years. Special licenses like the DIFC innovation license are cheaper than standard commercial and trade licenses.

Warning: Businesses must remain compliant with any development in the DIFC license framework, including any changes in license or eligibility requirements, to avoid cancellation of the DIFC license and imposition of penalties by the DFSA.

DIFC License Operating Regulations: Validity of License

The ROC will issue a commercial license at the time when the Certificate of Incorporation, Registration, or Continuation is issued.

• The commercial license is valid for one year and must be renewed for continued operation.
• The renewal fee should typically be paid no later than 30 days after the expiry of the current license.

Availability of Legal Help: Kayrouz & Associates' Experienced Business Setup Attorneys in Dubai

Business setup in Dubai can be complicated for early-stage startups, specialised services, and professions, as well as regulated financial service providers.

Kayrouz & Associates' Corporate & Commercial Law provides strategic guidance, advice, and assistance to entrepreneurs and businesses, helping them avoid common mistakes and ensuring a precise process for obtaining a DIFC business setup license.

Here's where Kayrouz & Associates can help:

• Business Formation and Incorporation
• Commercial contracts and leasing
• Commercial financing and agreements
• Company formation & restructuring
• Corporate records and compliance issues
• Public companies and corporate governance

As a full-service law firm with 25-plus full-time lawyers and legal consultants, and having resolved more than 570 cases with a client satisfaction rate of 96%, Kayrouz & Associates is the legal partner you need to complete DIFC business setup in 2025.

Disclaimer: This guide provides general information about the DIFC business setup rules and regulations. For specific legal advice regarding your business situation, consult Kayrouz & Associates' qualified UAE corporate law attorneys.

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