What is a DIFC SPC?
Dubai International Financial Centre Special Purpose Company (DIFC SPC) is a type of private legal entity which is limited by shares incorporated under the laws of DIFC.
It is a financial free zone located in Dubai with its own body of regulations, law and an independent court system.
Advantages of a DIFC SPC
SPCs offers numeral benefits which differentiate them from Limited companies. The SPC is designed for structured financial transactions.
An SPCs’ benefits shared by a DIFC Limited company, include:
No foreign ownership restrictions
Companies incorporated in the DIFC are not subject to foreign ownership restrictions and shares can be held 100% by foreigners.
There are no corporate or any other taxes for companies within the DIFC. There is also no stamp duty payable on the transfer of shares in a DIFC company. From 2004 onward, companies incorporated in the DIFC will not be accountable to tax for at least 50 years. This agreement is renewable.
No physical office requirement
An SPC is not required to lease a physical office space within the DIFC. An SPC is only obligated to maintain a registered office address, which will be that of its corporate service provider.
Compatibility with other offshore structures
DIFC companies are frequently and successfully used in composite structures involving firms incorporated in onshore jurisdictions, as well as in leading offshore jurisdictions.
The DIFC may be attractive to parties looking to invest in other GCC jurisdictions outside of the UAE. They intend to use a jurisdiction that is flexible and operates a refined and versatile body of corporate law.
UAE national status
A company (including an SPC) formed in the DIFC is owned entirely by UAE nationals. It is, therefore, treated as a “national company” for onshore purposes within the UAE.
Limited liability of shareholders
The liability of shareholders in an SPC is limited to the committed share capital amount.
DIFC law and courts
An SPC is incorporated within the DIFC’s internationally oriented, English speaking legal and regulatory system. DIFC corporate law is based on the English common law. The DIFC Courts operate a system of binding criterion based on the common law.