Setting up a DIFC Prescribed Company (PC) is one of the smartest ways to establish a presence in the Dubai International Financial Centre at a fraction of the usual cost. For entrepreneurs, investors, and global businesses seeking a flexible, low-maintenance, and asset-friendly business structure, PC formation in DIFC offers the perfect solution. Whether your goal is to hold assets, manage investment portfolios, or facilitate structured finance transactions, a Prescribed Company provides the legal protection and simplified compliance you need to operate with confidence.
In this guide, we’ll walk you through what a DIFC Prescribed Company is, why it’s beneficial, who is eligible, and the exact steps to register one. By the end, you’ll know whether this structure is the right choice for your business.
What is a Prescribed Company in DIFC?
A Prescribed Company (PC) in the Dubai International Financial Centre (DIFC) is a legal entity designed for specific business needs such as holding assets, managing structured finance transactions, or acting as a corporate holding vehicle. Unlike a traditional operational company in DIFC, which requires higher fees and compliance obligations, a Prescribed Company offers a cost-effective and streamlined structure.
This type of company is not meant for full-scale trading activities. Instead, it is commonly used by investors and businesses who want a secure and recognized jurisdiction for asset protection without incurring the higher costs of a fully operational DIFC entity.
For example, investors often use Prescribed Companies to hold real estate, intellectual property, shares, or aircraft, while others use them as holding companies for international investments. The flexibility and credibility of the DIFC regulatory framework make PCs an attractive choice.
In short, a Prescribed Company bridges the gap between affordability and global recognition — giving investors access to DIFC’s world-class legal system without the heavy operational overhead.
Why Choose Prescribed Company Formation in DIFC?
Cost-Effective Structure
One of the main reasons investors choose a Prescribed Company is affordability. With a $100 one-time application fee and an annual license fee of just $1,000, it’s one of the most cost-efficient options in the DIFC. Compared to setting up a standard DIFC company, the savings are significant.
Simplified Compliance
Unlike operational companies, PCs enjoy lighter regulatory requirements. This means less administrative work, fewer reporting obligations, and reduced ongoing expenses. For businesses that don’t require a full trading license, this is an ideal solution.
Asset Protection & Flexibility
DIFC offers one of the most secure and respected legal frameworks in the region. Holding valuable assets—such as intellectual property, financial portfolios, or real estate—through a DIFC Prescribed Company ensures robust legal protection. Moreover, the company can be easily structured to suit diverse needs, whether that’s acting as a holding entity, facilitating finance deals, or managing offshore investments.
International Reputation
Being part of DIFC automatically enhances credibility. Many international investors and financial institutions recognize DIFC’s regulatory strength, making it easier for businesses to build trust and expand globally.
In summary, a DIFC Prescribed Company is the go-to option for anyone seeking low-cost setup, simplified compliance, and world-class asset protection.
Eligibility Criteria for DIFC Prescribed Company Formation
Not every business or individual can establish a Prescribed Company in DIFC. To qualify, the company must meet specific ownership and purpose requirements.
- Ownership or Control
A Prescribed Company must be controlled by one of the following:- Citizens or companies from the GCC region
- Approved DIFC participants or related entities
- Corporate Service Providers (CSPs) acting on behalf of clients
- Purpose of the Company
The entity must operate within approved objectives, such as:- Holding assets (shares, real estate, intellectual property, or aircraft)
- Managing structured finance deals
- Serving as a holding company or investment vehicle
- Director Requirements
If the controlling party is outside the GCC, the company must appoint a DIFC-based CSP as a director. This ensures local oversight and compliance.
These requirements are designed to keep Prescribed Companies aligned with DIFC’s international financial standards while maintaining flexibility for investors.
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Step-by-Step Process for DIFC Prescribed Company Setup
Step 1 – Create a DIFC User Profile
Visit the official DIFC website and create a user account. You will need to verify your identity and set up login credentials to access the application portal.
Step 2 – Initial Approval Application
Submit the application form outlining the purpose and structure of your company. If you are working with a CSP, include their details and supporting documents. This stage ensures that your business purpose qualifies under DIFC’s Prescribed Company framework.
Step 3 – Company Registration
Once approved, proceed with the registration process. This step gives your entity a legal identity within DIFC, making it officially recognized.
Step 4 – Document Submission
Prepare and upload the required documents, including:
- Articles of Association
- Authorization letters for office address use
- Director and shareholder details
- CSP appointment evidence (if required)
Step 5 – Final Approval
After reviewing your application and documents, DIFC will issue the final approval and incorporation certificate. At this stage, your Prescribed Company is fully registered and can begin operations.
➡️ Timeline: The entire process typically takes 5–7 working days if all documents are in order.
DIFC Prescribed Company Costs
One of the strongest advantages of choosing a Prescribed Company is the low cost compared to other DIFC entities.
- Application Fee: USD 100 (one-time)
- Annual License Fee: USD 1,000
By comparison, setting up a standard DIFC company can cost significantly more, with higher annual fees and compliance costs. PCs are particularly attractive for investors who don’t need full-scale operations but want to leverage DIFC’s global reputation and secure legal system.
FAQs on DIFC Prescribed Company Formation
Q1: What is a DIFC Prescribed Company?
A Prescribed Company in DIFC is a low-cost, flexible business entity designed for holding assets, managing investments, or facilitating finance transactions.
Q2: How much does it cost to open a Prescribed Company in DIFC?
The total cost includes a $100 application fee and a $1,000 annual license fee.
Q3: Who can set up a Prescribed Company in DIFC?
GCC citizens/companies, approved DIFC participants, and Corporate Service Providers (CSPs) are eligible.
Q4: Do Prescribed Companies need office space in DIFC?
No. Unlike standard DIFC companies, Prescribed Companies can operate without a physical office lease, saving costs.
Q5: How long does it take to register a Prescribed Company?
With all documents in order, registration can take as little as 5–7 working days.
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How Business & Beyond Can Help You Setup a DIFC Prescribed Company
At Business & Beyond, we specialize in helping entrepreneurs and investors establish their businesses across the UAE’s top jurisdictions, including DIFC. Our team provides end-to-end guidance on Prescribed Company formation, including:
- Evaluating your eligibility and business goals
- Handling application and registration processes
- Ensuring compliance with DIFC regulations
- Ongoing support for renewals, amendments, and structuring advice
By choosing us, you eliminate the guesswork and administrative hurdles. We ensure that your company is set up smoothly, quickly, and with complete compliance.
📞 Ready to set up your DIFC Prescribed Company? Get in touch with Business & Beyond today for a free consultation.
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