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DIFC Prescribed Company: Holding Company Cost and 2026 Rules

Quick answer

A DIFC Prescribed Company costs USD 100 to incorporate and USD 1,000 a year for the licence, plus an AED 20 Knowledge and Innovation fee, with a USD 300 confirmation statement each year. A standard DIFC private company pays USD 8,000 and USD 12,000 a year. Since 24 July 2026 the old qualifying conditions are gone, but most Prescribed Companies must appoint a DFSA-registered corporate service provider, and none may have staff or lease an office.

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Written by
Krystyna Sokolovska
Krystyna Sokolovska UAE Business Setup Specialist
3 min read
On this page 6 sections
  1. Prescribed Company fees against a private company
  2. What changed on 24 July 2026
  3. Rules that come with the low fee
  4. Fines and losing the status
  5. How long it takes
  6. Holding company or foundation

A DIFC Prescribed Company is a passive holding company: its licence is limited to the activity of holding. It is the cheapest company DIFC offers, and on 24 July 2026 DIFC changed the rules so that anyone can now open one. This page sets out the fees and the new rules from the Prescribed Company Regulations 2026, the DIFC Registrar’s table of fees (DIFC-CS-GL-03 Rev. 16, updated 30 July 2026) and DIFC’s special purpose vehicle handbook (30 July 2026), read on 4 October 2026.

Prescribed Company fees against a private company

DIFC fee Prescribed Company Private company (non-retail)
Incorporation USD 100 USD 8,000
Licence, first year and every renewal USD 1,000 USD 12,000
Confirmation statement, every year USD 300 USD 300
Change of name USD 200 USD 800
First year, incorporation plus licence USD 1,100 USD 20,000
Swipe to see the full table

DIFC itself describes set-up fees as “starting from USD 1,100”. Moving an existing company into or out of DIFC as a Prescribed Company costs USD 1,000. A data protection notification of USD 750 applies only if the company processes personal data. The fees of the corporate service provider are private prices and are not published.

What changed on 24 July 2026

The Prescribed Company Regulations were first issued in 2019 and updated in 2020, 2022 and 2024. Until July 2026 an applicant had to pass one of several entry tests, such as GCC ownership or a qualifying purpose like aviation or crowdfunding. The 2026 regulations, enacted on 24 July 2026, remove those tests: DIFC says the vehicle is now open to any applicant. In exchange, unless the company is an exempt Prescribed Company, it must appoint a corporate service provider registered with the DFSA to act for it. Prescribed Companies that existed before 24 July 2026 have six months to appoint one.

An exempt Prescribed Company is one controlled by a DIFC registered entity, a DFSA authorised firm, a government entity or a listed company. It can use its affiliate’s address instead of a service provider’s.

Rules that come with the low fee

  • Holding only: the licence is restricted to the activity of a holding company. DIFC says it can hold any registrable asset from around the world.
  • No staff: it may not maintain a workforce through employees or any other arrangement, so it cannot sponsor employment visas.
  • No office of its own: its registered office is the service provider’s, or an affiliate’s for an exempt company; it cannot lease its own premises.
  • No funds: it cannot be used to set up a fund in DIFC without DFSA authorisation.
  • Officers: at least one shareholder, one director aged 18 or over, one authorised signatory and one senior management representative; a company secretary is optional.
  • Name: must end in “Limited” or “Ltd.”, and include “Holding” if it operates as a holding company.

Fines and losing the status

The regulations set fines of up to USD 20,000 for failing to appoint a corporate service provider and up to USD 100,000 for not giving the provider the documents it needs. A company whose Prescribed Company status is revoked loses every exemption and concession, including the fee rates, and is treated as a normal company.

How long it takes

DIFC publishes only the first step: an initial approval email, typically within 3 working days. It gives no total time to licence and no minimum share capital; the handbook asks only for the share class, number of shares and nominal value.

Holding company or foundation

A Prescribed Company holds assets for its shareholders. If the aim is to provide for a family or a cause, with a council and beneficiaries instead of shareholders, compare a DIFC foundation, which pays no registration fee and USD 350 a year. For an operating business, see DIFC company setup and the wider guide to a holding company in the UAE.

Frequently asked questions

How much does a DIFC Prescribed Company cost?

USD 100 to incorporate and USD 1,000 a year for the licence, plus AED 20, so USD 1,100 in year one, and a USD 300 confirmation statement each year. A private company pays USD 8,000 and USD 12,000.

Who can set up a DIFC Prescribed Company?

Since 24 July 2026 any applicant, because the old qualifying requirements were removed. Unless the company is exempt, it must appoint a DFSA-registered corporate service provider.

What is an exempt Prescribed Company?

One controlled by a DIFC registered entity, a DFSA authorised firm, a government entity or a listed company. It does not need a corporate service provider and can use an affiliate address.

Can a DIFC Prescribed Company hire staff or get visas?

No. The regulations say it shall not maintain a workforce through employees or any other arrangement, and it cannot lease its own office.

What can a DIFC Prescribed Company do?

Only hold assets: its licence is restricted to the activity of a holding company. It cannot be used to set up a fund without DFSA authorisation.

What happens to Prescribed Companies set up before July 2026?

Non-exempt companies have six months from 24 July 2026 to appoint a corporate service provider. Failing to do so can bring a fine of up to USD 20,000.

Need a corporate service provider for a DIFC holding company? Compare formation providers or describe your structure and collect quotes.

Krystyna Sokolovska
Written by
Krystyna Sokolovska
UAE Business Setup Specialist

Krystyna Sokolovska is a UAE business setup specialist who helps founders, independent professionals, and growing companies navigate business launch decisions in the Emirates with more clarity and less risk. Her work focuses on the practical side of entry into the UAE market — choosing the right setup path, understanding licensing options, preparing for banking, planning visa steps, and avoiding common mistakes that slow companies down.

Her editorial approach combines market context, operational thinking, and decision support. The goal is not only to explain how things work on paper, but to help readers understand what matters in real business situations, what usually creates friction, and where expert support can save time, money, and unnecessary back and forth.

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