The benefits of a Special Purpose Company within DIFC.

Over the past 18 months, Links Group has become increasingly involved with Dubai International Financial Centre (DIFC) Special Purpose Company (SPC) transactions in the UAE and GCC.  They continue to be a popular vehicle for cross-border, finance transactions in the Middle East, Asia and more recently into parts of Africa.  Links Group provides independent Corporate Nominee Shareholding within a variety of “live” corporate structures, ultimately mitigating risk throughout the overall transaction.

An SPC may be used by a trustee of an Investment Trust, an Investment Company or an Investment Partnership to hold the property/asset of a relevant Fund.

Whilst there are some limitations to the remit of an SPC, there are also noticeable benefits under the Laws of the DIFC;

  • Zero tax.
  • No foreign ownership restrictions.
  • Limited Liability status.
  • Registration and enforcement of security within DIFC
  • No mandatory lease requirement.
  • Exemption from annual Shareholder meetings, with no audit submission/filing of accounts.

It is important to note an SPC may not be the Trustee of an Investment Trust, the general partner of an Investment Partnership or an Investment Company.  An SPC cannot undertake any Financial Services unless it is authorised by the Dubai Financial Services Authority (DFSA) to do so.

In conjunction with the DIFC authorities, the mutual client and their engaged Legal Counsel, Links Group provides for the ease and efficiency of ultimately transferring Shares to a third-party with no Commercial restrictions or penalties.

Links Group continues to build on the success of the DIFC SPC model.  Please contact us for a no obligation discussion to learn more.

Article by Paul Arnold on Mar 30th 2016

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