Reference
DIFC glossary
In short
DIFC and DFSA documents use precise terms that mean something specific. Getting them wrong in an application is one of the quicker routes to a query round. These are the 49 that come up most.
Licensing
- Commercial Licence
- The licence issued by the DIFC Registrar of Companies permitting an entity to carry on its stated activities in the Centre. Renewed annually.Annual renewal →
- DIFC Client Portal
- The online system through which DIFC entities file applications, make notifications, renew licences and submit documents to the Registrar.
- DIFC Innovation Hub
- The DIFC's technology cluster, offering co-working space and the discounted Innovation Licence to qualifying technology companies.Innovation Licence →
- Name Reservation
- The first step in a DIFC incorporation, reserving a company name that meets the Registrar's naming rules for a defined period.
Regulation
- Adequacy
- A determination that a jurisdiction provides an adequate level of data protection, allowing personal data to be transferred there from the DIFC without additional safeguards.
- Base Capital Requirement
- The minimum capital an Authorised Firm must hold according to its prudential category, ranging from US$10,000 for Category 4 to US$10 million for Categories 1 and 5.DFSA capital requirements →
- Client Money
- Money an Authorised Firm holds or controls on behalf of a client, subject to specific DFSA segregation, reconciliation and reporting rules.
- Collective Investment Fund
- An arrangement where contributions are pooled and managed as a whole, with investors having no day to day control. Managing one is a Financial Service requiring Category 3C authorisation.Fund manager licence →
- Commissioner of Data Protection
- The DIFC authority supervising compliance with DIFC Law No. 5 of 2020, receiving notifications, handling complaints and exercising enforcement powers.Data protection →
- Compliance Officer
- An Authorised Individual responsible for a firm's compliance function, required to be resident in the UAE with direct access to the governing body.Compliance officer and MLRO →
- Conduct of Business Module(COB)
- The DFSA Rulebook module governing how Authorised Firms deal with clients, including classification, disclosure, suitability and client assets.
- DFSA(Dubai Financial Services Authority)
- The independent regulator of financial services conducted in or from the DIFC, responsible for authorisation, supervision and enforcement.DFSA authorisation process →
- DNFBP(Designated Non-Financial Business or Profession)
- A non-regulated DIFC entity that falls within defined categories such as company service providers, real estate brokers and dealers in precious metals, bringing full anti-money laundering obligations supervised by the Registrar.AML and CFT →
- Exempt Fund
- A DIFC Domestic Fund offered only to Professional Clients, with a minimum subscription of US$50,000 and no more than 100 unitholders, requiring notification to the DFSA.
- Expenditure Based Capital Minimum(EBCM)
- A capital requirement calculated as a set number of weeks of an Authorised Firm's annual audited expenditure. Firms hold the higher of this and their base capital requirement.DFSA capital requirements →
- Financial Service
- An activity listed in the DFSA General Module, such as advising on financial products, arranging deals, managing assets or accepting deposits. Carrying one on in or from the DIFC requires a Licence.
- General Module(GEN)
- The DFSA Rulebook module defining Financial Services, the authorisation requirements and the core systems and controls obligations for Authorised Firms.
- goAML
- The UAE Financial Intelligence Unit's reporting platform. Registration is mandatory for Authorised Firms and DNFBPs, and suspicious activity reports are filed through it.
- In-Principle Approval
- The DFSA's confirmation that it is minded to authorise a firm, subject to conditions such as funding capital, completing incorporation and confirming key appointments. Not a Licence.DFSA authorisation process →
- Innovation Testing Licence(ITL)
- A restricted DFSA authorisation allowing a firm to test an innovative financial product with real customers under agreed limits before applying for a full Licence.Innovation Testing Licence →
- Licensed Function
- A role within an Authorised Firm that only an Authorised Individual may perform, including Senior Executive Officer, Compliance Officer, MLRO and Finance Officer.
- MLRO(Money Laundering Reporting Officer)
- The named individual responsible for a firm's financial crime reporting, required to be resident in the UAE and to have direct access to senior management.AML and CFT →
- Professional Client
- A client classification under the DFSA Conduct of Business Module based on assets, experience and knowledge. Firms owe fewer conduct protections to Professional Clients than to Retail Clients.
- Qualified Investor Fund(QIF)
- A DIFC Domestic Fund limited to 50 Professional Client unitholders with a minimum subscription of US$500,000, registered rather than approved by the DFSA. The lightest DIFC fund regime.Fund manager licence →
- Regulatory Business Plan(RBP)
- The central document in a DFSA application, describing the firm's business model, clients, operations, risks and controls.Regulatory Business Plan →
- Retail Client
- A client who is not classified as a Professional Client or Market Counterparty. Serving Retail Clients requires a specific DFSA endorsement and brings higher conduct obligations.
- Senior Executive Officer(SEO)
- The Authorised Individual with overall responsibility for an Authorised Firm's business, required to be resident in the UAE with genuine authority.
Corporate
- Companies Law(DIFC Law No. 5 of 2018)
- The DIFC statute governing company formation, directors' duties, share capital, registers, accounts and filings.DIFC Companies Law →
- Continuation(Redomiciliation)
- The process by which a company or foundation moves its jurisdiction of registration to the DIFC while keeping its legal identity, assets and contracts.Migration into the DIFC →
- Foundation
- A DIFC legal person with no shareholders or members, established under DIFC Law No. 3 of 2018, holding assets in its own right under a charter and by-laws.DIFC Foundation →
- Guardian
- A person appointed to supervise a DIFC Foundation's council, mandatory where the Foundation has charitable objects or where the charter reserves powers.DIFC Foundations Law →
- Operating Law(DIFC Law No. 7 of 2018)
- The DIFC statute governing commercial licensing, registered office, beneficial ownership and operational compliance for entities in the Centre.DIFC Operating Law →
- Prescribed Company
- A DIFC company operating under the Prescribed Company Regulations 2024 with no office or employee requirement, used for holding assets and structuring transactions.Prescribed Company →
- Recognised Company
- A branch of a foreign company registered in the DIFC. It is not a separate legal person and the overseas parent carries full liability.Branch office →
- Registered Office
- The official address of a DIFC entity inside the Centre, at which statutory records are kept and notices can be served.Registered agent →
- Registrar of Companies(ROC)
- The DIFC authority responsible for incorporating entities, issuing commercial licences, maintaining the public register and enforcing company and operating law obligations.
- Single Family Office(SFO)
- An entity providing services exclusively to members of one family and entities they control. Generally falls outside the DFSA perimeter for that reason.Family office →
- Special Purpose Vehicle(SPV)
- An entity established for a single defined transaction or to hold a specific asset, ring-fencing it from other activities. In the DIFC this is usually a Prescribed Company.
- Ultimate Beneficial Owner(UBO)
- An individual who ultimately owns or controls 25 per cent or more of an entity, directly or indirectly, or who otherwise exercises control. Must be identified, registered and filed.UBO regime →
Tax
- De Minimis Rule
- The corporate tax test under which a Qualifying Free Zone Person may earn non-qualifying revenue up to the lower of 5 per cent of total revenue or AED 5 million without losing the 0 per cent rate.UAE corporate tax →
- Qualifying Free Zone Person(QFZP)
- A Free Zone entity that meets the corporate tax conditions for a 0 per cent rate on Qualifying Income, including adequate substance, the de minimis limit, transfer pricing compliance and audited accounts.UAE corporate tax →
- Qualifying Income
- Income taxed at 0 per cent for a Qualifying Free Zone Person, broadly income from transactions with other Free Zone Persons and from specified qualifying activities.
People
- DEWS(DIFC Employee Workplace Savings)
- The funded workplace savings scheme that replaced end of service gratuity in the DIFC from 1 February 2020. Employers contribute 5.83 per cent or 8.33 per cent of basic salary monthly depending on length of service.DIFC Employment Law →
- Establishment Card
- The card issued to a DIFC entity by the government services authority that allows it to sponsor residence visas. Required before any employee visa can be processed.Visas and establishment card →
Disputes
- DIFC Courts
- The English-language common law courts of the DIFC, with automatic jurisdiction over DIFC matters and opt-in jurisdiction where parties agree in writing.DIFC Courts →
- Wills Service
- The DIFC Courts registry that allows non-Muslims to register a will governing UAE assets, giving the DIFC Courts probate jurisdiction over those assets.Wills Service →
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