Service Company Setup (Ltd)Accounting and Bookkeeping

No additional approvals are required to register a company conducting this business activity.

There is no minimum share capital requirement for DIFC companies.

The DIFC company registration provides various benefits and opportunities for entrepreneurs:

• International status and reputation. The free zone is recognized as a leading global financial center, making it highly attractive to international companies and investors. Registering a business in the free zone ensures a high level of trust from government authorities, banks, and international partners due to its strict regulatory standards, compliance requirements, and transparency in business processes.
• Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and and enables interaction with clients and partners worldwide.
• Strategic location. The free zone is located in the heart of Dubai, a key financial and business hub in the Middle East. Its proximity to major business centers and state-of-the-art infrastructure creates ideal conditions for business meetings and events, fostering a comfortable and productive professional environment.
• Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
• Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
• Wide range of business activities. The free zone offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including finance, insurance, technology, consulting, and other professional services.
• Combining business activities. The free zone allows the combination of various business activities under a single license, provided their interrelation is justified. This reduces operational costs for companies and expands the range of services offered to clients.
• English common Law-based legal system. The free zone operates under an English common law system and has independent courts (DIFC Courts) for resolving commercial and civil disputes. This ensures reliable legal protection and clear dispute resolution mechanisms based on international standards. Arbitration and mediation within the DIFC Courts enable efficient and swift conflict resolution, minimizing operational risks.
• Financial regulation. The free zone provides licenses for a wide range of financial services, including banks, insurance companies, investment funds, and other financial institutions. All financial entities are regulated by the Dubai Financial Services Authority (DFSA), an independent regulator that ensures strict oversight and adherence to international standards.
• Innovative environment and startup support. DIFC Innovation Hub offers unique growth opportunities for startups in FinTech, InsurTech, RegTech, and Islamic FinTech sectors. Through acceleration programs such as DIFC FinTech Hive and access to venture capital, companies gain investment, mentorship, and a professional network to successfully scale and enter international markets.
• Business ecosystem. The free zone provides a comprehensive business ecosystem, including the DIFC Academy and DIFC Family Wealth Centre. The DIFC Academy trains specialists in law, finance, and management, while the DIFC Family Wealth Centre offers solutions for effective family wealth management, providing comprehensive services for managing inheritance, assets, and investments over the long term.

Various rental property options are available in DIFC, provided upon preliminary request and subject to availability:

1. 1. Serviced Office in Business Centers. 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.
   2. Retail Spaces. Retail premises located in Gate Avenue, Gate District, and Gate Village, intended for various purposes including restaurants, art galleries, grocery and retail stores, pharmacies, nurseries, fitness centers, wellness, and beauty salons.
   3. Commercial Offices:
      • • Exclusively Fitted Office (from AED 280 per sq. ft./year). Offices ranging from 100 to 1,500 sq. ft., specifically equipped by DIFC Investments Ltd.
        • Core and Shell Unit. Offices starting from 1,000 sq. ft., located in Gate District or Gate Village buildings.

• The number of visa quotas is determined by the rented area, calculated at 80 sq.ft. per visa quota.
• If the lease agreement is signed with DIFC Investments Ltd, it is automatically registered.
• For DIFC companies leasing premises from third parties or owning it, lease registration with DIFC is mandatory.
• In the case of shared use of the premises with an affiliated company registered in the DIFC, a Letter of Consent for shared office space must be obtained from the affiliated entity.
• The registration fee for the lease agreement with DIFC depends on the lease term.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. 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:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • 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.
2. 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.
3. 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 and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 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.
4. 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). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. 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.
6. Other 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.

DIFC offers the following main types of UAE resident visas for foreign investors and company employees:

• Golden Visa:
  • Issued to top executives with a monthly salary of more than AED 30,000, as well as to investors with investments of at least AED 2,000,000 in a company or property in DIFC.
  • Allows managing a business, living, and working in the UAE.Grants the right to sponsor family visas.
  • Valid for ten years.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.
  • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.
  • Valid for two years.