New DIFC rule could change how UAE investors set up companies

Dubai: Dubai International Financial Centre (DIFC) is proposing an overhaul of its Prescribed Company (PC) system that could make it significantly easier — and more attractive — for UAE residents, investors and family offices to set up low-cost holding structures in the financial free zone.

The proposed amendments, now out for public consultation, would remove existing restrictions on who can establish a Prescribed Company, effectively opening the option to any applicant.

This marks a notable shift from the current framework, which requires firms to meet specific eligibility, purpose and conditions linked to DIFC.

“DIFC Authority is pleased to announce for public consultation amended Prescribed Company Regulations,” said Jacques Visser, Chief Legal Officer at DIFC Authority.

“The proposed amendments open the regime to any applicant, significantly enhancing the scope of the regime, as well as expanding the role of corporate service providers in the Centre.”

What are Prescribed Companies?

Prescribed Companies are widely used as cost-efficient vehicles for holding assets such as shares, real estate and intellectual property, and are popular among high-net-worth individuals and family offices seeking structured ownership frameworks within a regulated environment.

By removing the remaining qualifying requirements, DIFC is signalling confidence in the maturity of its regulatory ecosystem, while aligning with international tax transparency and reporting standards.

The move is also expected to broaden the appeal of DIFC as a base for global capital and regional investment structures.

At the same time, the Centre is tightening oversight. Under the proposed rules, most Prescribed Companies will be required to appoint a Corporate Service Provider (CSP), licensed by the Dubai Financial Services Authority, to act as their primary administrative and compliance interface with the Registrar of Companies.

This effectively professionalises the compliance layer, ensuring that while access to the regime is widened, regulatory standards are maintained.

“The amendments introduce clear statutory duties and obligations for CSPs, alongside supporting enforcement measures, reinforcing their role within the DIFC ecosystem and ensuring appropriate accountability as the regime expands,” DIFC said in its consultation paper.

What changes?

The proposed changes also extend to DIFC’s Operating Regulations, clarifying the Registrar’s powers to request information — including financial data — from registered entities, and enabling controlled disclosure of such information for statistical purposes.

These updates are designed to strengthen transparency while preserving confidentiality, a balancing act that global financial centres are increasingly required to manage.

The reforms align the Prescribed Company framework with newer structures introduced in DIFC, including Variable Capital Companies, and reflect a broader push to modernise the Centre’s legal infrastructure in line with global best practices.

The consultation period will run for 30 days, with stakeholders invited to submit feedback before the proposed rules are finalised.