Unlocking Strategic Value with
In the evolving financial landscape of the UAE, savvy investors and global enterprises are constantly seeking structures that offer both operational efficiency and regulatory flexibility. The Dubai International Financial Centre (DIFC) has responded to this demand by introducing the Prescribed Company (PC) regime, a streamlined and cost-effective corporate structure that supports complex asset ownership and international wealth planning.
Combined with the advantages of setting up a DIFC Holding Company, the PC regime unlocks tremendous value for high-net-worth individuals (HNWIs), family offices, private equity firms, and global investors. In this article, we explore how Prescribed Companies and Holding Companies in DIFC offer unparalleled opportunities for efficient structuring, asset protection, tax optimization, and long-term governance — and how Arab Asset Consulting can support you every step of the way.
What is a DIFC Prescribed Company?
A DIFC Prescribed Company (PC) is a special-purpose corporate vehicle established under the DIFC Prescribed Company Regulations, which came into force on 31 October 2019 and were amended in 2022 and 2024. The PC is classified as a Private Company limited by shares, designed specifically for passive holding and investment activities. It is akin to global Special Purpose Vehicles (SPVs) and has been optimized for:
- Holding private illiquid assets
- Managing securities portfolios
- Structuring family wealth
- Conducting cross-border investments
Due to its reduced regulatory burden, flexible ownership rules, and cost-effective setup, the Prescribed Company is ideal for:
- Family businesses and private offices
- Investment funds
- Trust and estate planners
- Private equity and venture capital firms
Eligibility and Control Requirements
To qualify for registration as a DIFC Prescribed Company, certain eligibility and control criteria must be met. These ensure that the PC serves a legitimate investment or asset-holding purpose and fits within the broader DIFC regulatory ecosystem.
Control Requirements
A PC must be controlled by one or more of the following:
- GCC citizens or entities controlled by GCC citizens
- A DIFC-authorized firm
- A DIFC-registered person (excluding other PCs or Non-Profit Incorporated Organizations)
Purpose Requirements
A PC must be established or continued for either:
- Asset Holding: Holding legal title to GCC registrable assets such as:
- Real estate
- Company shares
- Partnership interests
- Aircraft or maritime vessels
- Qualifying Purpose: Such as:
- Aviation structure
- Maritime structure
- IP holding and licensing
- Structured finance or securitization
- Crowdfunding platforms
Director Requirement
A PC must appoint as a director an employee of a DIFC Corporate Service Provider (CSP) registered with the DFSA, who must have an Anti-Money Laundering (AML) arrangement with the DIFC.
The Strategic Value of a Holding Company in DIFC
A Holding Company is a business entity created primarily to own shares in other companies. It doesn’t produce goods or services directly but offers strategic advantages in corporate governance, risk insulation, and asset management. When established in the DIFC, a Holding Company benefits from the Centre’s legal, tax, and regulatory infrastructure — making it an ideal base for:
- International business expansion
- Ownership of UAE and global assets
- Succession planning and estate structuring
- Reducing liability exposure
Whether as a standalone entity or in conjunction with a Prescribed Company, a DIFC Holding Company empowers investors to manage their portfolios efficiently and securely.
Why DIFC?
The Dubai International Financial Centre is one of the most advanced and trusted financial hubs globally. Located in the heart of Dubai, it acts as the gateway to the Middle East, Africa, and South Asia (MEASA). Some key features include:
- A common law legal system
- An independent judiciary
- A world-class regulatory authority (DFSA)
- Access to international banking and capital markets
- Recognition under international treaties (FATCA, CRS, BEPS)
With full foreign ownership rights, capital repatriation, and zero personal income tax, DIFC offers unmatched advantages for companies involved in asset holding, investment, and financial services.
Key Advantages of DIFC Prescribed and Holding Companies
1. Cost-Effective Structure
The Prescribed Company regime significantly reduces setup and ongoing costs. Unlike standard DIFC firms, PCs benefit from:
- Reduced registration fees
- Streamlined compliance requirements
- Minimal operational obligations
2. Tax Optimization
The introduction of UAE Corporate Income Tax (effective from 1 June 2023) does not undermine DIFC’s appeal. The UAE CT regime offers:
- Exempt income provisions (e.g., dividend and participation exemptions)
- Foreign tax credits
- Group relief and tax consolidation
- Preferential treatment for Free Zone Qualifying Persons
Prescribed Companies and Holding Companies in DIFC can potentially benefit from 0% corporate tax if they qualify under the Free Zone tax incentives — a key draw for international investors.
3. Asset Protection & Succession Planning
Holding assets through a DIFC structure limits exposure to personal or operating liabilities. This is particularly relevant for:
- Real estate holdings
- Intellectual property portfolios
- Shares in operating companies
These entities are also ideal vehicles for family businesses seeking succession planning, wealth preservation, and inter-generational transfer strategies.
4. Strategic Global Reach
With DIFC’s global network and bilateral treaties, your entity gains access to:
- Cross-border financing
- International joint ventures
- Foreign direct investments
- M&A transactions
You also benefit from the UAE’s neutral tax treaties and compliance with OECD standards for international transparency.
Estimated Setup Costs in DIFC
Here’s a high-level breakdown of the costs associated with setting up a Prescribed or Holding Company in DIFC:
| Service / Item | Cost (USD) |
|---|---|
| Name Reservation | $800 |
| Incorporation Application | $8,000 |
| Commercial License (Annual) | $12,000 |
| Data Protection Registration | $500 (annual renewal $250) |
| Office Space – Business Centre (1 desk) | Starting from $27,000/year |
| Fitted Offices | Starting from $55/sq.ft |
| Visas (per employee) | Starting from $1,500 |
| Establishment Card | $630 |
| PSA Deposit | $682 |
Total Cost Estimate: $25,000 to $50,000+ depending on office space and visa requirements
Note: Prescribed Companies may qualify for waivers or reduced office space requirements, depending on their structure and approved use.
Arab Asset Consulting: Your Strategic Partner in DIFC
At Arab Asset Consulting, we specialize in structuring efficient and compliant entities for private wealth and corporate clients. Our team offers bespoke solutions grounded in legal expertise, financial strategy, and regulatory compliance. Here’s how we assist you:
Tailored Advisory & Structuring
We work closely with clients to determine the optimal legal structure, whether a Prescribed Company, Holding Company, or a hybrid. We ensure alignment with business goals, family office strategies, and international tax planning.
Incorporation & Regulatory Filing
We manage the full incorporation process, from name reservation to license issuance and compliance with DIFC Registrar requirements.
Registered Agent & Address
As an approved CSP in DIFC, we provide registered agent services, along with a registered business address in DIFC.
Governance & Administration
We offer corporate secretarial services, appointment of professional directors, AML compliance, financial reporting, and regulatory submissions.
Banking & Operational Support
We assist with opening corporate bank accounts, setting up payment solutions, and ensuring smooth operational readiness.
Use Cases: Who Should Consider This?
A DIFC Prescribed Company or Holding Company is highly suitable for:
- Family Offices: Structuring multigenerational wealth, estate planning, and inter-family asset transfers.
- Real Estate Investors: Owning and managing domestic or foreign property portfolios.
- Private Equity / Venture Capital: Structuring investments and limiting exposure.
- Startups and IP Holders: Managing intangible assets, licensing, and cross-border royalties.
- International Corporations: Managing regional operations or holding shares in UAE and GCC-based entities.
Final Thoughts
The DIFC’s Prescribed Company regime and Holding Company framework together form a powerful solution for global investors and asset managers. Whether your goal is cost-effective asset holding, succession planning, cross-border investment, or tax optimization, the DIFC offers a world-class jurisdiction backed by legal certainty and economic opportunity.
At Arab Asset Consulting, we bring deep regional expertise and international best practices to help you navigate DIFC’s evolving regulatory framework. From the earliest planning stages to long-term governance, we serve as your trusted partner for financial structuring, compliance, and expansion.
Ready to Build Your DIFC Structure?
Let’s craft a DIFC structure that aligns with your strategic goals. Schedule a consultation with Arab Asset Consulting to get personalized guidance on Prescribed Companies, Holding Companies, and the entire DIFC ecosystem.
Contact us today to begin your DIFC journey.
Unlocking Strategic Value with
In the evolving financial landscape of the UAE, savvy investors and global enterprises are constantly seeking structures that offer both operational efficiency and regulatory flexibility. The Dubai International Financial Centre (DIFC) has responded to this demand by introducing the Prescribed Company (PC) regime, a streamlined and cost-effective corporate structure that supports complex asset ownership and international wealth planning.
Combined with the advantages of setting up a DIFC Holding Company, the PC regime unlocks tremendous value for high-net-worth individuals (HNWIs), family offices, private equity firms, and global investors. In this article, we explore how Prescribed Companies and Holding Companies in DIFC offer unparalleled opportunities for efficient structuring, asset protection, tax optimization, and long-term governance — and how Arab Asset Consulting can support you every step of the way.
What is a DIFC Prescribed Company?
A DIFC Prescribed Company (PC) is a special-purpose corporate vehicle established under the DIFC Prescribed Company Regulations, which came into force on 31 October 2019 and were amended in 2022 and 2024. The PC is classified as a Private Company limited by shares, designed specifically for passive holding and investment activities. It is akin to global Special Purpose Vehicles (SPVs) and has been optimized for:
- Holding private illiquid assets
- Managing securities portfolios
- Structuring family wealth
- Conducting cross-border investments
Due to its reduced regulatory burden, flexible ownership rules, and cost-effective setup, the Prescribed Company is ideal for:
- Family businesses and private offices
- Investment funds
- Trust and estate planners
- Private equity and venture capital firms
Eligibility and Control Requirements
To qualify for registration as a DIFC Prescribed Company, certain eligibility and control criteria must be met. These ensure that the PC serves a legitimate investment or asset-holding purpose and fits within the broader DIFC regulatory ecosystem.
Control Requirements
A PC must be controlled by one or more of the following:
- GCC citizens or entities controlled by GCC citizens
- A DIFC-authorized firm
- A DIFC-registered person (excluding other PCs or Non-Profit Incorporated Organizations)
Purpose Requirements
A PC must be established or continued for either:
- Asset Holding: Holding legal title to GCC registrable assets such as:
- Real estate
- Company shares
- Partnership interests
- Aircraft or maritime vessels
- Qualifying Purpose: Such as:
- Aviation structure
- Maritime structure
- IP holding and licensing
- Structured finance or securitization
- Crowdfunding platforms
Director Requirement
A PC must appoint as a director an employee of a DIFC Corporate Service Provider (CSP) registered with the DFSA, who must have an Anti-Money Laundering (AML) arrangement with the DIFC.
The Strategic Value of a Holding Company in DIFC
A Holding Company is a business entity created primarily to own shares in other companies. It doesn’t produce goods or services directly but offers strategic advantages in corporate governance, risk insulation, and asset management. When established in the DIFC, a Holding Company benefits from the Centre’s legal, tax, and regulatory infrastructure — making it an ideal base for:
- International business expansion
- Ownership of UAE and global assets
- Succession planning and estate structuring
- Reducing liability exposure
Whether as a standalone entity or in conjunction with a Prescribed Company, a DIFC Holding Company empowers investors to manage their portfolios efficiently and securely.
Why DIFC?
The Dubai International Financial Centre is one of the most advanced and trusted financial hubs globally. Located in the heart of Dubai, it acts as the gateway to the Middle East, Africa, and South Asia (MEASA). Some key features include:
- A common law legal system
- An independent judiciary
- A world-class regulatory authority (DFSA)
- Access to international banking and capital markets
- Recognition under international treaties (FATCA, CRS, BEPS)
With full foreign ownership rights, capital repatriation, and zero personal income tax, DIFC offers unmatched advantages for companies involved in asset holding, investment, and financial services.
Key Advantages of DIFC Prescribed and Holding Companies
1. Cost-Effective Structure
The Prescribed Company regime significantly reduces setup and ongoing costs. Unlike standard DIFC firms, PCs benefit from:
- Reduced registration fees
- Streamlined compliance requirements
- Minimal operational obligations
2. Tax Optimization
The introduction of UAE Corporate Income Tax (effective from 1 June 2023) does not undermine DIFC’s appeal. The UAE CT regime offers:
- Exempt income provisions (e.g., dividend and participation exemptions)
- Foreign tax credits
- Group relief and tax consolidation
- Preferential treatment for Free Zone Qualifying Persons
Prescribed Companies and Holding Companies in DIFC can potentially benefit from 0% corporate tax if they qualify under the Free Zone tax incentives — a key draw for international investors.
3. Asset Protection & Succession Planning
Holding assets through a DIFC structure limits exposure to personal or operating liabilities. This is particularly relevant for:
- Real estate holdings
- Intellectual property portfolios
- Shares in operating companies
These entities are also ideal vehicles for family businesses seeking succession planning, wealth preservation, and inter-generational transfer strategies.
4. Strategic Global Reach
With DIFC’s global network and bilateral treaties, your entity gains access to:
- Cross-border financing
- International joint ventures
- Foreign direct investments
- M&A transactions
You also benefit from the UAE’s neutral tax treaties and compliance with OECD standards for international transparency.
Estimated Setup Costs in DIFC
Here’s a high-level breakdown of the costs associated with setting up a Prescribed or Holding Company in DIFC:
| Service / Item | Cost (USD) |
|---|---|
| Name Reservation | $800 |
| Incorporation Application | $8,000 |
| Commercial License (Annual) | $12,000 |
| Data Protection Registration | $500 (annual renewal $250) |
| Office Space – Business Centre (1 desk) | Starting from $27,000/year |
| Fitted Offices | Starting from $55/sq.ft |
| Visas (per employee) | Starting from $1,500 |
| Establishment Card | $630 |
| PSA Deposit | $682 |
Total Cost Estimate: $25,000 to $50,000+ depending on office space and visa requirements
Note: Prescribed Companies may qualify for waivers or reduced office space requirements, depending on their structure and approved use.
Arab Asset Consulting: Your Strategic Partner in DIFC
At Arab Asset Consulting, we specialize in structuring efficient and compliant entities for private wealth and corporate clients. Our team offers bespoke solutions grounded in legal expertise, financial strategy, and regulatory compliance. Here’s how we assist you:
Tailored Advisory & Structuring
We work closely with clients to determine the optimal legal structure, whether a Prescribed Company, Holding Company, or a hybrid. We ensure alignment with business goals, family office strategies, and international tax planning.
Incorporation & Regulatory Filing
We manage the full incorporation process, from name reservation to license issuance and compliance with DIFC Registrar requirements.
Registered Agent & Address
As an approved CSP in DIFC, we provide registered agent services, along with a registered business address in DIFC.
Governance & Administration
We offer corporate secretarial services, appointment of professional directors, AML compliance, financial reporting, and regulatory submissions.
Banking & Operational Support
We assist with opening corporate bank accounts, setting up payment solutions, and ensuring smooth operational readiness.
Use Cases: Who Should Consider This?
A DIFC Prescribed Company or Holding Company is highly suitable for:
- Family Offices: Structuring multigenerational wealth, estate planning, and inter-family asset transfers.
- Real Estate Investors: Owning and managing domestic or foreign property portfolios.
- Private Equity / Venture Capital: Structuring investments and limiting exposure.
- Startups and IP Holders: Managing intangible assets, licensing, and cross-border royalties.
- International Corporations: Managing regional operations or holding shares in UAE and GCC-based entities.
Final Thoughts
The DIFC’s Prescribed Company regime and Holding Company framework together form a powerful solution for global investors and asset managers. Whether your goal is cost-effective asset holding, succession planning, cross-border investment, or tax optimization, the DIFC offers a world-class jurisdiction backed by legal certainty and economic opportunity.
At Arab Asset Consulting, we bring deep regional expertise and international best practices to help you navigate DIFC’s evolving regulatory framework. From the earliest planning stages to long-term governance, we serve as your trusted partner for financial structuring, compliance, and expansion.
Ready to Build Your DIFC Structure?
Let’s craft a DIFC structure that aligns with your strategic goals. Schedule a consultation with Arab Asset Consulting to get personalized guidance on Prescribed Companies, Holding Companies, and the entire DIFC ecosystem.
Contact us today to begin your DIFC journey.
