DIFC updates Prescribed Company regime in UAE.
The Dubai International Financial Centre (DIFC) has removed the eligibility restrictions that previously limited who could establish a Prescribed Company (PC). The PC is DIFC’s low-cost holding and structuring vehicle, equivalent to a Special Purpose Vehicle (SPV). The updated PC regulations took effect on 24 July 2026, opening the structure to any applicant, regardless of Gulf Cooperation Council (GCC) ownership, asset location or qualifying purpose. In exchange for the wider access, the regulations now require most PCs to appoint a licensed Corporate Services Provider (CSP) to manage their compliance obligations.
For businesses and family groups considering a DIFC holding structure, the changes expand eligibility while introducing a new compliance step that should be considered during the setup process.
What has changed under the updated regulations
Under the previous regime, establishing a PC depended on meeting specific criteria, such as being controlled by a GCC person, holding a GCC-registrable asset or meeting one of a limited set of qualifying purposes. The updated regulations remove these qualifying-applicant and nexus requirements altogether. The structure is now open to international investors, family offices and businesses seeking a common law holding vehicle in the UAE, regardless of regional connection.
In place of the old eligibility test, the regulations give CSPs a defined statutory function within the regime. Unless a company qualifies for an exemption, it must appoint a DIFC-licensed CSP as the company’s main point of contact for administrative and compliance matters with the DIFC Registrar of Companies (RoC), handling filings, maintaining records and liaising with the regulator on an ongoing basis. Oversight shifts from an upfront eligibility test to continuous supervision through a licensed intermediary.
The changes do not alter what a PC is for. It remains a passive holding and structuring vehicle, restricted to its approved holding or structuring activities, while allowing connections to financial services activity where this complies with legislation administered by the Dubai Financial Services Authority (DFSA). A PC is barred from employing staff, reinforcing its status as a non-operating entity.
How the changes affect businesses in the UAE
DIFC expects the changes to appeal most to family groups, investment holding structures and financing arrangements looking for a flexible, low-cost vehicle in the centre. The practical effect for these groups is twofold. Investors and family offices that previously fell outside the regime, because they lacked a GCC connection or did not meet one of the earlier qualifying purposes, can now establish a PC on the same terms as any other applicant. At the same time, the compliance model has shifted from a one-off eligibility check to an ongoing relationship with a licensed CSP, so setup timelines and costs now need to factor in that appointment from the outset.
Businesses reviewing their UAE holding structures or considering one for the first time should seek professional advice on how the updated regime applies to their circumstances.
