DIFC Updates Prescribed Company Regulations to Strengthen SPV Structuring Framework - Business Today Middle East
Dubai International Financial Centre (DIFC)has introduced updatedPrescribed Company (PC) Regulations, expanding the use of Prescribed Companies—the DIFC’s equivalent ofSpecial Purpose Vehicles (SPVs)—to. . .
Dubai International Financial Centre (DIFC)has introduced updatedPrescribed Company (PC) Regulations, expanding the use of Prescribed Companies—the DIFC’s equivalent ofSpecial Purpose Vehicles (SPVs)—to enhance its position as a leading jurisdiction for holding and corporate structuring vehicles. The revised regulations significantly simplify and broaden the existing framework, making it easier for businesses and investors to establish Prescribed Companies while maintaining strong governance, transparency and regulatory oversight. Jacques Visser, Chief Legal Officer at DIFC Authority, said the updated regulations reinforce DIFC’s commitment to providing a responsive, flexible and business-friendly legal environment. He noted that the new framework expands access to holding companies and SPVs for legitimate business purposes while requiring the appointment of aDIFC-licensed Corporate Services Provider (CSP)in most cases to ensure effective compliance and regulatory engagement. Under the revised regime, the previous qualifying eligibility requirements have been removed, allowing any applicant to establish or continue a Prescribed Company in the DIFC. Unless exempt, applicants must appoint a DIFC-licensed CSP to serve as the primary administrative and compliance liaison with theDIFC Registrar of Companies (RoC). The updated framework substantially widens access to DIFC’s SPV regime, enabling a broader range of businesses and investors to benefit from the centre’s internationally recognised legal and regulatory environment while maintaining appropriate safeguards through proportionate oversight. The regulations also reaffirm that Prescribed Companies must remainpassive holding vehicles, used solely for approved ownership or structuring purposes. While they may be utilised in connection with financial services activities where compliant withDubai Financial Services Authority (DFSA)legislation, they are not permitted to employ staff, ensuring they remain non-operational entities. In addition, the new regulations establish a formal statutory role for Corporate Services Providers, who will oversee regulatory filings, record-keeping, compliance obligations and communications with the Registrar of Companies on behalf of Prescribed Companies. DIFC said the enhanced framework is expected to appeal to family offices, investment holding structures, financing transactions and other ownership arrangements seeking a flexible, cost-effective and well-regulated vehicle for corporate structuring.