DIFC: Dubai’s Premier International Financial Centre
Explore the Dubai International Financial Centre — a globally recognized hub for wealth structuring,
asset protection, and business growth, built on English Common Law and a world-class regulatory framework.
What Is the DIFC?
The Dubai International Financial Centre (DIFC) is a leading global financial hub offering competitive features that make it one of the most desirable jurisdictions for setting up international wealth and succession structures, such as:
- An independent regulator recognised internationally
- A legal system based on English common law
- A well-established judicial framework
- The region’s largest financial ecosystem
- Robust physical, regulatory, and legal infrastructure
A reputation for stability and global best practice
When structuring private wealth, corporate holdings, or asset protection in the DIFC, two commonly used vehicles are the DIFC Foundation and the DIFC Prescribed Company. While both provide access to DIFC’s robust legal and regulatory environment, they serve distinct purposes and suit different client profiles.
DIFC Foundation
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What is a DIFC Foundation?
As individuals reflect on estate planning, wealth structuring, and philanthropic goals, DIFC Foundations have become a powerful and popular tool to achieve long-term personal and family objectives.
A DIFC Foundation is a self-owning, incorporated legal entity that combines features of both trusts and companies while remaining distinct in structure and governance. It is one of the most robust vehicles for holding and protecting private, commercial, or charitable assets and ensuring they are distributed in line with the founder’s intentions.
Originally established in civil law jurisdictions as an alternative to common law trusts, foundations are now available in select common law systems, including the DIFC.
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Practical Applications of a DIFC Foundation
DIFC Foundations are highly versatile and well-suited to a wide range of personal, family, and business objectives:
- Charitable and philanthropic giving – Support meaningful causes through a structured legal framework.
- Estate and succession planning – Facilitate intergenerational wealth transfer in line with the founder’s intentions.
- Asset protection and wealth preservation – Shield assets from external claims and ensure long-term security.
- Consolidation of global assets – Bring international holdings under one centralized structure.
- Centralised financial and tax reporting – Improve oversight and simplify compliance obligations.
- Inheritance tax planning – Mitigate tax liabilities through strategic structuring.
- Circumvention of forced heirship rules – Maintain control over asset distribution regardless of local inheritance laws.
- Enhanced privacy – Preserve confidentiality of ownership, control, and beneficiaries.
- Separation of economic benefit and voting control – Distinguish between financial interest and decision-making authority.
- Maintenance of control in family businesses – Secure leadership continuity while managing economic interests.
- Implementation of employee share option schemes – Facilitate employee ownership through a robust legal structure.
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Key Requirements of a DIFC Foundation
To establish and operate a DIFC Foundation, the following criteria must be met:
Minimum Structure
- At least one (1) founder
- A minimum of two (2) council members
Registered Office in the DIFC
The Foundation must maintain a registered office within the Dubai International Financial Centre. This requirement can be fulfilled by:
- Leasing a dedicated office in the DIFC
- Sharing an office with an affiliated DIFC-based entity
- Appointing a Registered Agent to provide the address
Permissible Activities
- The Foundation may not carry out commercial activities, except those directly connected to and incidental to its stated objects
Guardian Requirement
- If the Foundation has a charitable object or a specified non-charitable object, a Guardian must be appointed
DIFC – Prescribed Company
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What is a DIFC Prescribed Company?
A DIFC Prescribed Company is a private company limited by shares, classified under the “Small Private Company” regime as defined by the Companies Law. Entities previously established as a Special Purpose Company (SPC) or Intermediate Special Purpose Vehicle (ISPV) are automatically recognised as Prescribed Companies. Other eligible applicants may also incorporate a Prescribed Company subject to DIFC approval.
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Qualifying Purposes of a Prescribed Company
Prescribed Companies may only be established by the following qualifying applicants:
- Authorised Firms
- Funds
- Family Offices
- FinTech Entities
- Foundations
- Government Entities
- Holding Companies
- Private Trust Companies
- Proprietary Investment Companies
- Individuals or entities wholly owned by any of the above
- DIFC-registered entities (excluding retail entities and other Prescribed Companies)
Note: An Authorised Firm refers to a person or entity holding a licence from the DFSA or a Recognised Financial Services Regulator to carry out one or more Financial Services, excluding representative offices.
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Qualifying Purposes of a Prescribed Company
Prescribed Companies must operate for one or more of the following permitted purposes:
- Aviation structures
- Crowdfunding structures
- Structured finance
- DIFC Holding Structures – entities formed exclusively to hold DIFC-based businesses or entities
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Advantages of a DIFC Prescribed Company
DIFC Prescribed Companies offer a strategic platform for a variety of business, investment, and family structuring objectives:
- Strategic structuring Tailored to focus on specific objectives with built-in governance, control, and accountability mechanisms.
- Intellectual property protection Hold and manage IP rights, which can be leveraged for capital raising or commercialisation.
- Asset ring-fencing Isolate ownership of key assets, simplifying ownership, transfer, or disposal – particularly useful in larger organisations.
- Financing and securitisation Use assets as security to raise finance or capitalise purchases, including securitisation structures.
- Risk mitigation Separate specific assets or liabilities from the parent group to limit exposure to high-risk environments.
- Tax efficiency Benefit from DIFC’s tax-neutral regime on profits, gains, and distributions, allowing for enhanced tax planning.
- Succession planning A flexible vehicle for business continuity planning, including the orderly transfer and protection of assets within family enterprises.
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