The Dubai International Financial Centre has overhauled its Prescribed Company Regulations, opening up its special purpose vehicle offering to a far broader pool of applicants while keeping compliance standards firmly in place.
The update removes the qualifying eligibility criteria that previously restricted who could establish a Prescribed Company, DIFC's equivalent of an SPV. Any applicant can now apply, provided they engage a DIFC licensed Corporate Services Provider to handle administrative and compliance matters with the Registrar of Companies.
Jacques Visser, Chief Legal Officer at DIFC Authority, said the changes reflect the centre's commitment to a responsive and business friendly legal framework. He noted that requiring a licensed CSP in most cases ensures effective compliance oversight and regulatory engagement, keeping the regime aligned with DIFC's standards of transparency and governance.
Prescribed Companies remain passive holding vehicles under the updated rules. They cannot employ staff and must be used solely for permitted holding or structuring purposes, though they may connect to financial services activity where this complies with DFSA legislation.
The regulations also formalise the role of CSPs, who now carry statutory responsibility for filings, record keeping and ongoing compliance, acting as the liaison between each PC and the Registrar throughout its existence.
By easing entry requirements while embedding stronger oversight through CSPs, DIFC aims to strike a balance between accessibility and regulatory integrity. The centre expects the changes to appeal particularly to family groups, investment holding structures and financing transactions seeking a cost effective, flexible vehicle within a compliance led environment.
The revamped regime marks one of the more significant expansions to DIFC's SPV offering in recent years, reinforcing its position as a preferred jurisdiction for holding and structuring arrangements in the region.
News Source: Emirates News Agency
