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In today’s fast-paced world, smart investors and businesses are increasingly turning to Special Purpose Vehicles (SPVs) to streamline operations, manage risk, and efficiently handle their assets. Dubai, with its stable regulatory framework and business-friendly environment, has emerged as a leading jurisdiction for setting up SPVs, particularly within the Dubai International Financial Centre (DIFC).
Setting up SPV in DIFC offers a versatile and flexible business structure under a strong regulatory framework. Whether your focus is on investment, asset holding, or project management, SPV setup in DIFC could be a perfect choice for you.
Our company formation specialists can provide you complete assistance in SPV company setup in DIFC, Dubai, so you get to start quickly and smoothly.
Dubai International Financial Center (DIFC) has been leading as a global financial center for more than two decades. Renowned throughout the MEASA region, it is the ideal destination for businesses looking to grow in a fast-paced environment.
Located along Sheikh Zayed Road, in the heart of Dubai, DIFC is now home to around 7500 registered companies, offering:
Special purpose vehicle (SPVs), also known as Prescribed Company in DIFC, is a passive holding company established by a business or individual for a specific purpose such as asset protection, diversifying portfolio, capital raising, isolating financial risks, etc.
Under the DIFC Companies Law, SPVs fall under the category of private companies. Various types of entities, including private clients, corporations, and investment funds, can set up SPVs within the jurisdiction. However, they cannot carry out any commercial activities, nor can they hire employees.
Today, setting up SPV business in DIFC had gained popularity due to the zone’s flexible legal framework, strong regulatory environment and global reputation as leading financial hub.
There are various purposes of setting up SPV business in DIFC DUBAI, including:
Estate planning:
SPVs can help segregate ownership interests, making them an effective tool for succession planning and wealth distribution.
Creating holding companies:
SPVs can hold assets including shares, intellectual property, real estate, or other high-value assets, while protecting them from potential risks.
Starting joint ventures:
An SPV as a joint venture can be created by two or more parties who wish to collaborate on a project.
Fund raising:
SPVs can be used to raise capital needed to finance projects or activities by issuing debt instruments or securities.
Real estate investment:
SPVs can be used to buy and hold title to various types of permitted properties across the UAE and internationally.
Risk isolation:
By holding specific assets or liabilities through SPV, the risk is contained within that particular SPV, which protects original entity from direct impact.
Intellectual property management:
SPVs can be used to hold and manage valuable intellectual property (IP) assets.
Basic steps to start SPV company in DIFC include:
Start with preparing the necessary documents such as passport copies of shareholders, articles of association, board resolution, UBO declaration, etc., as per DIFC requirements.
Next step involves getting a suitable business name approved by the DIFC authority. The name must be as per the DIFC naming guidelines.
Submit an application for initial approval through the DIFC portal. Information and documents asked for will depend on the qualifying requirements.
Once you get the initial approval, you must apply for the registration and SPV license in DIFC, which will be issued once approved.
Here are the benefits of setting up SPV in DIFC:
The annual commercial license cost of an SPV company in DIFC is USD 1,000*, while the application fee is USD 100* (one time). This cost is subject to changes made by the DIFC authority and specific business requirements. You can consult our DIFC business setup experts to learn more.
You will need the following documents for DIFC SPV setup:
Please note that the list given above is subject to changes. Our expert can guide you better based on your specific business situation.
Dubai offers a favourable environment for SPV business setup. Whether it is for holding assets, risk fencing, raising capital, or other suitable purposes, DIFC provides a strong and facilitative platform for SPV establishment. This simple structure can help you protect your assets and liabilities intelligently.
Dubiz Business Setup can help you with setting up SPV in DIFC end to end. We will guide you through your license, visa, and all other formalities so you can start with complete compliance and confidence.
Here why entrepreneurs trust us with the business setup in UAE:
Under DIFC SPV regulations, the following applicants are eligible to establish an SPV company setup in DIFC:
Setting up SPV in DIFC will be suitable for you in situations like these:
No, SPVs in DIFC cannot hire staff or employees. If your plan is to do so, we can guide you through the most suitable alternative structure option.
Yes, DIFC SPV can hold asset outside UAE, across wider GCC and international region. You can hold various types of assets including real estate, intellectual properties, shares, and other types.
Yes, DIFC SPVs are subject to certain restrictions such as it cannot conduct any commercial operations and cannot hire staff.
