Photo Credit : WAM
Dubai International Financial Centre (DIFC) has introduced updated Prescribed Company Regulations, expanding access to its Special Purpose Vehicle structure and simplifying the process for businesses and investors.
Prescribed Companies, known as PCs, are DIFC’s equivalent of Special Purpose Vehicles. They are commonly used for holding assets, managing ownership structures, financing transactions and other legitimate corporate arrangements.
Under the updated regulations, previous qualifying eligibility requirements have been removed, allowing any applicant to establish or continue a Prescribed Company in DIFC. In most cases, applicants must appoint a DIFC-licensed Corporate Services Provider to manage administrative and compliance responsibilities.
The Corporate Services Provider will serve as the main point of contact between the Prescribed Company and the DIFC Registrar of Companies. Its responsibilities include regulatory filings, record keeping, compliance monitoring and communication with the authorities.
Jacques Visser, Chief Legal Officer at DIFC Authority, said the changes reflect DIFC’s commitment to maintaining a flexible and business-friendly legal framework. He added that the updated regime would expand access to holding companies and structuring vehicles while maintaining strong standards of transparency, governance and regulatory integrity.
The regulations confirm that Prescribed Companies must remain passive holding or structuring vehicles. They cannot employ staff or carry out regular operational activities.
However, a Prescribed Company may be used in connection with financial services, provided all activities comply with legislation administered by the Dubai Financial Services Authority.
The updated framework aims to make DIFC’s Special Purpose Vehicle regime more accessible while ensuring appropriate regulatory oversight. It is expected to benefit family-owned groups, investment holding companies, financing structures and businesses seeking flexible and cost-effective corporate vehicles.
DIFC said the changes further strengthen its position as a leading jurisdiction for international business structuring, offering legal certainty, efficient administration and a compliance-focused regulatory environment.
