International investors and families use a DIFC Prescribed Company to hold assets across several countries in one common law vehicle. Since the regime reopened to any applicant on 24 July 2026, a global holder no longer needs a UAE or GCC connection to use one. Here is how it works.
International investors and families use a DIFC Prescribed Company as a single, professionally administered vehicle to hold assets spread across several countries: shares in operating companies, international real estate, investment portfolios and intellectual property. Since the Prescribed Company regime reopened to any applicant on 24 July 2026, a global holder no longer needs a UAE or GCC connection to use one. This guide covers why the DIFC suits international holding, what a Prescribed Company can hold, and the substance and tax questions that follow.
Why international investors choose the DIFC
The appeal is the pairing of an English common law framework with a low running cost. A Prescribed Company sits inside the DIFC, with access to the DIFC Courts and a legal system that international investors, banks and counterparties already understand. It does not ordinarily need its own leased premises: it can use a registered office provided through a commonly owned DIFC entity or its Corporate Service Provider, which keeps the ongoing footprint light.
For a holder with assets in three or four countries, the draw is consolidation. Rather than maintaining parallel holding companies in multiple jurisdictions, each with its own filings and advisers, the assets sit under one recognised vehicle in a neutral, well-regarded centre.
Eligibility: open since 24 July 2026
A Prescribed Company can now be established by any applicant, of any nationality or residence. The qualifying-purpose, qualifying-applicant and UAE or GCC nexus tests that used to gate the regime were removed on 24 July 2026. In their place, unless the company is exempt, it must appoint a DFSA-registered Corporate Service Provider. Our DIFC Prescribed Company handbook sets out the full current regime, and the 2026 amendments guide covers exactly what changed and the 24 January 2027 deadline for existing companies.
What has not changed is the nature of the vehicle: it holds assets passively and cannot trade, invoice or employ staff.
What a DIFC Prescribed Company can hold
There is no restriction on where the assets sit. In practice international holders use it for:
- Shares in operating companies across several countries, consolidated into one holding entity
- International real estate, ring-fenced from unrelated risk
- Investment and securities portfolios, and interests in funds
- Intellectual property, which the vehicle can hold and license
- A single high-value asset such as an aircraft or vessel, held in its own vehicle
Who benefits most
Family offices. A Prescribed Company works as a clean holding layer beneath a DIFC Foundation, separating who ultimately benefits from how each asset is held. A Foundation at the apex with one or more Prescribed Companies beneath it is the most common family structure in the Centre.
Global entrepreneurs. Separating business ownership from personal assets, and consolidating shareholdings in operating companies across several countries into one recognised vehicle, rather than parallel holding companies in multiple jurisdictions.
International investors. Holding diversified portfolios, private company shares and international real estate through a single DIFC entity, with the governance and reporting that comes with it.
Private wealth clients. Consolidating assets under one professionally administered holding vehicle, which simplifies succession, reduces the risk of assets being overlooked, and makes intergenerational transfer far more straightforward than probate across several countries.
Substance, tax and the questions that follow
A Prescribed Company is a UAE entity and falls within the UAE Corporate Tax regime. For a genuine holding company this is rarely burdensome, since dividend income and gains on qualifying shareholdings are often exempt under the participation exemption where the ownership and holding period conditions are met. The practical question is usually what must be documented rather than how much is payable.
Two points deserve attention. Economic substance still matters even though the standalone Economic Substance Regulations no longer apply to financial years ending after 31 December 2022: the corporate tax regime expects a holding company to have adequate substance in the UAE, and a pure equity holding company has a lighter test to meet rather than none, which must still be evidenced. And where the company seeks the 0% rate available to a Qualifying Free Zone Person on qualifying income, that outcome depends on meeting the ongoing conditions, not on holding a DIFC licence alone. These are questions to settle at the outset, with advice, rather than after the structure is built.
Prescribed Company or Foundation?
International holders structuring family wealth often weigh a Prescribed Company against a Foundation. They answer different questions: a Prescribed Company holds a specific asset or set of assets, while a Foundation governs and passes on wealth across generations, and the two are frequently combined. Our Foundation versus Prescribed Company guide works through that choice in detail.
How Atlas can help
Atlas Corporate Services is a DIFC-registered corporate service provider. We establish and administer Prescribed Companies for international investors and families, act as the DFSA-registered CSP the regime now requires for most structures, and handle the registered office, filings, beneficial ownership records and corporate tax registration that follow. Our DIFC Prescribed Company service covers the full lifecycle, or speak with our team about holding your international assets in the DIFC.
Frequently Asked Questions
Can a DIFC Prescribed Company hold assets outside the UAE?
Yes. There is no restriction on where the assets sit. A DIFC Prescribed Company is routinely used to hold shares in operating companies, real estate, investment portfolios and intellectual property located anywhere in the world, consolidated under one DIFC entity with access to the DIFC Courts and an English common law framework.
Do I need a UAE or GCC connection to set up a DIFC Prescribed Company?
No. Since the Prescribed Company Regulations 2026 came into force on 24 July 2026, the regime is open to any applicant, of any nationality or residence. The qualifying-applicant and UAE or GCC nexus tests were removed. The only substantive requirement is that the company remains a passive holding vehicle and, unless exempt, appoints a Corporate Service Provider.
Is a DIFC Prescribed Company a good vehicle for international investments?
It is one of the most common. It offers an English common law framework, access to the DIFC Courts, a light ongoing footprint, and the ability to consolidate assets held across several countries into one recognised vehicle in a neutral centre. It suits international investors, global entrepreneurs, family offices and private wealth clients holding diversified assets.
Does an international Prescribed Company still need a Corporate Service Provider?
Unless it qualifies as an Exempt Prescribed Company, yes. Every non-exempt Prescribed Company must appoint a DFSA-registered Corporate Service Provider, which handles filings, fees and records. Existing non-exempt companies formed before 24 July 2026 have until 24 January 2027 to appoint one. Most privately held international structures will need a CSP.
How is a Prescribed Company taxed on international holdings?
A Prescribed Company falls within the UAE Corporate Tax regime and must register with the Federal Tax Authority. For a genuine holding company, dividends and gains on qualifying shareholdings are often exempt under the participation exemption where the conditions are met, and qualifying income may attract a 0% rate where the Qualifying Free Zone Person conditions are satisfied. These depend on the facts and on meeting ongoing substance conditions.
Should I use a Prescribed Company or a Foundation for my international assets?
They answer different questions and are often combined. A Prescribed Company holds a specific asset or set of assets in a light, ring-fenced vehicle; a Foundation governs and passes on wealth across generations, frequently owning one or more Prescribed Companies beneath it. Our Foundation versus Prescribed Company guide compares them in detail.