Kane Group: Jurisdictions - Dubai

"Building long-term sustainable relationships with clients founded upon partnership and understanding" - Shaun Brook, Practice Leader, Indurance Management

Kane Services:

Dubai - Country Background

Dubai is one of the seven emirate states that make up the United Arab Emirates, located in the Middle East, south of the Persian Gulf. Dubai has a population of approximately 2.3 million.

Since the formation of the UAE in 1971, Dubai has transformed itself from an oil and gas dependent state to a broadly diversified economy based on international trade, banking, tourism, real estate and manufacturing. The Dubai International Financial Centre (DIFC) endeavours to promote the development of a thriving regional insurance market by attracting global and regional insurers, reinsurers and brokers and implementing world-class legislation and regulation through the Dubai Financial Services Authority (DFSA).

Dubai attracts a highly skilled workforce, which is absorbed by the growing number of international companies, professional service firms and financial institutions.

Interested in Setting Up a Captive in Dubai?

Call Shaun Brook +971 4434 3642 or email Shaun on shaun.brook@kane-group.com

General Information

Government
Emirate.

Legal
DIFC has a legislative system consistent with English Common law. Given its construct, DIFC has its own set of civil and commercial laws and regulations and has developed a complete code of law governing financial services regulation.

Time Zone
GMT +4.

Taxation
Tax rate of 0%, VAT of 0% and all companies established in the DIFC have a 50 year tax holiday, no personal taxes, indirect taxes, with-holding taxes, capital gains and dividend taxes. Supplementary fees of 0.1% for each USD 1million in turnover payable annually.

Regulatory Environment
All insurance companies in Dubai are regulated by the Dubai Financial Services Authority and are subject to the following regulations: Employment law, Contract law, Arbitration law, Insolvency law Personal property law and Data protection law.

Ownership
All financial services entities operating in the DIFC can be 100% foreign owned.

Costs of Setting Up Captives

Minimum Paid Up Capital

 

 

Class 1 Captive

USD 150,000

Class 2 Captive

USD 250,000

Class 3 Captive

USD 1m

PCC

USD 50,000

Captive Costs
These will vary according to the size and complexity of the company and the following are intended as guidelines only:

Range

Low

High

Application Costs (non recurring regulatory and legal)

Captive: USD 5,500
PCC: USD 8,000

Cell: USD 1,000

Annual Operating Costs (regulatory)

Captive: USD 5,500

PCC: USD 8,000

Cell: USD 1,000

In addition to the costs specified above, there will be annual management fees, directors' fees, annual auditors' charges as well as investment management and consultants' fees.

The information in this document is intended as a general overview of jurisdictional requirements at the time of publication. It is not to be construed as legal advice or opinion and persons reading this publication are advised to obtain independent legal, accounting or tax advice on this regard.