Dubai International Financial Centre (DIFC) has amended the Prescribed Companies regulations. The amendments expand and simplify the current Prescribed Company legal regime.
A Prescribed Company (PC) is a term describing a private company incorporated by a qualifying applicant or for a qualifying purpose according to the DIFC rules.
A clause has been added as an amendment to the regulations for applicants that a Prescribed Company can be established either by natural or legal person residing anywhere in the world. However, there are certain conditions for company directors. In particular, they must have an existing nexus to DIFC.
There are also restrictions on the license granting, so that Prescribed Companies are only allowed to operate to fulfil qualified purposes or as holding companies. In addition, Prescribed Companies cannot hire staff.
In order to register a Prescribed Company or to continue its business operations, one of the following criteria must be met:
— the company must be controlled by one or more GCC* citizens, a GCC-controlled entity or a state-owned company;
— the company must be controlled by an authorised firm lic...