When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in DIFC

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Dubai

DIFC (Dubai International Financial Centre) is a free economic zone (free zone) established in 2004 in the Emirate of Dubai, UAE. DIFC is one of the largest financial hubs in the Middle East, Africa, and South Asia (MEASA) region, attracting leading financial institutions, law firms, technology companies, and consulting organizations from around the world. DIFC offers a unique business ecosystem for banks, insurance companies, investment funds, as well as innovative startups in FinTech, InsurTech, RegTech, and Islamic FinTech. The free zone combines a cutting-edge legal infrastructure based on English common law, an independent judicial system, and strict international regulatory standards, providing companies with reliable legal protection and favorable conditions for scaling and growth. Companies registered in DIFC are permitted to conduct business within the free zone and beyond the UAE. DIFC issues the following types of business licenses: Financial services (banking, insurance, investments) Professional services unrelated to financial activities FinTech and innovation Retail and leisure With its international status, advanced technologies, and support for innovation, DIFC offers ideal conditions for companies seeking to scale and expand into global markets.

What you get:

Global Recognition
Access to Local and Global Markets
Strategic Location
Remote Company Registration
Full Profit Control
Wide range of business activities
English Common Law-based Legal System
Financial Regulation
Business Ecosystem

About Dubai International Financial Centre

DIFC (Dubai International Financial Centre) is a free economic zone (free zone) established in 2004 in the Emirate of Dubai, UAE. DIFC is one of the largest financial hubs in the Middle East, Africa, and South Asia (MEASA) region, attracting leading financial institutions, law firms, technology companies, and consulting organizations from around the world.

DIFC offers a unique business ecosystem for banks, insurance companies, investment funds, as well as innovative startups in FinTech, InsurTech, RegTech, and Islamic FinTech. The free zone combines a cutting-edge legal infrastructure based on English common law, an independent judicial system, and strict international regulatory standards, providing companies with reliable legal protection and favorable conditions for scaling and growth. Companies registered in DIFC are permitted to conduct business within the free zone and beyond the UAE.

DIFC issues the following types of business licenses:

Financial services (banking, insurance, investments)
Professional services unrelated to financial activities
FinTech and innovation
Retail and leisure

With its international status, advanced technologies, and support for innovation, DIFC offers ideal conditions for companies seeking to scale and expand into global markets.

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We offer products DIFC

Company setup
Services related to the establishment of a new company
Service
Visa Obtaining
Assistance with filling out documents or turnkey visa obtaining services. The services includes various types of resident visas. Tourist and transit visas are not included
Service

Suitable Targets

Local Business

Company registration for conducting business that requires a local presence in the UAE.

International Business

Company registration for conducting business both within specific jurisdictions and outside the UAE, including international wholesale trade and the provision of services at a global level.

Regional Representation

Establishing permanent establishments or subsidiaries to promote interests and coordinate operations in the Middle Eastern market.

Corporate Governance Center

Establishing a management company to coordinate and efficiently oversee the operations of branches and subsidiaries worldwide from a centralized hub in the UAE.

Investment Projects

Company registration for implementing and managing investment projects and startup accelerators in the UAE using own funds or attracted investments.

International Assets

Establishing a holding company in the UAE to own, manage, and oversee assets worldwide.

Popular Business Fields

Finance, Banking & Insurance
01
Professional services
02
Information Technology & Communication
03
Education & Training
04
Real Estate & Facility Services
05
Hospitality & Tourism
06

DIFC Offices and Commercial Premises

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Coworking

A workspace in a coworking with access during working hours Flexi Desk Dedicated Desk

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Offices

Fully equipped offices available in 6 DIFC business centers, with a variety of configurations ranging from compact workspaces to larger areas of up to 600 sq. ft. DIFC business centers offer serviced offices with IT support, 24/7 security, and free parking. Serviced OfficeFully serviced offices with unlimited access during business hours. Exclusively Fitted OfficeFully furnished and fitted offices with 24/7 unlimited access. Shell & Core OfficeCustomizable unfurnished spaces.

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Business Spaces

Specialized corporate spaces or business centers designed for business networking and corporate events, including offices, meeting rooms, training rooms, conference halls, and event spaces Meeting Rooms Event Spaces Indoor Venues: DIFC Conference Centre, East and West Wing, Promotional Stands Outdoor Venues: Waterfall, Under the gate, The Greenery, Gate Steps

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Commercial Premises

Business-designated areas: retail spaces in business centers, specialized premises, standalone buildings, and other commercial facilities Gate Avenue – DIFC’s main retail and pedestrian zone, bringing together restaurants, grocery stores, boutiques, pharmacies, beauty salons, fitness and wellness centers. Gate District – a business cluster with commercial spaces for cafés, bakeries, pharmacies, and service points integrated into the DIFC corporate environment. Gate Village – an art and lifestyle district combining art galleries, fine dining restaurants, concept stores, and cultural venues. Business Centers The Gate Building – an architectural symbol of DIFC and headquarters of regulators and governing entities. Features office spaces, art venues, and viewing galleries. Gate District – a business cluster surrounding The Gate, consisting of multiple towers. Includes corporate lobbies and retail galleries on the lower levels. Gate Village – a lifestyle area hosting family offices, investment firms, and cultural institutions. Includes galleries, fine dining restaurants, and boutiques. Gate Avenue – an extended retail and business promenade connecting DIFC’s key buildings. Includes office blocks, shops, restaurants, fitness and wellness centers. Central Park Towers – a mixed-use office and residential complex. Hosts corporate headquarters, office spaces, and high-end apartments. The Exchange (Exchange Square) – a modern building designed for legal, financial, and professional services firms.

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Ecosystems

Comprehensive business environments that provide companies with industry-specific infrastructure, networking opportunities, regulatory support, and investment facilitation to drive growth and innovation DIFC Academy – for educational institutions and training programs: from short-term seminars to multi-year courses in law, finance, management, and future skills. Includes the School of Finance and Management, the Law School, and the School of Future Skills. DIFC Family Wealth Centre – for family businesses and private offices. Offers advisor accreditation, educational programs, high-level networking, and support in matters of inheritance and dispute resolution. Innovation Hub – for tech companies, digital labs, regulators, and venture funds. A space for FinTech, InsurTech, RegTech, and Islamic FinTech, as well as for hosting industry events, workshops, and conferences. Sustainability – brings together social, environmental, and governance initiatives, along with collaboration with government entities. Focuses on renewable energy, water resource management, waste reduction, and sustainable urban development.

Requirements for Legal Entities Names

Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations

Authorized capital requirements

There is no minimum share capital requirement for DIFC non-financial companies.

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.