18/08/2026
DIFC has made Prescribed Companies significantly easier to establish, while introducing clearer and more specific compliance requirements.
Effective 24 July 2026, the Prescribed Company Regulations 2026 replaced the 2024 framework. One of the biggest changes is the removal of the previous eligibility requirements. Applicants no longer need to demonstrate GCC ownership, a GCC Registrable Asset, a Qualifying Purpose, or a CSP-employed director before incorporating.
This opens the PC regime to a broader range of family offices, investment holding structures and financing vehicles, with PCs remaining restricted to holding-company activities.
However, broader access comes with a new compliance layer. Unless a PC qualifies as Exempt, it must appoint a Corporate Service Provider (CSP) to manage its filings, records and dealings with the DIFC Registrar. The new regime also reinforces the PC’s role as a passive holding vehicle: a PC cannot employ staff or maintain a workforce through other arrangements.
For PCs established before 24 July 2026, non-exempt entities have six months to appoint a CSP — meaning a deadline of 24 January 2027, unless additional time is granted by the Registrar.
The consequences of non-compliance are significant: failure to appoint a CSP can result in fines of up to USD 20,000, while failure to provide an appointed CSP with the required information can attract fines of up to USD 100,000.
For new structures, the conversation has shifted from “Do we qualify?” to “How should we structure this correctly?” — including ownership and control, Exempt PC status, CSP arrangements and whether the proposed activity fits within a PC’s passive holding role.
Reach out to learn how Rasma Legal can support your DIFC Prescribed Company or SPV structuring and compliance.
