Corporate structures
Six entity forms, and when each one earns its place
In short
The Private Company limited by shares carries roughly nine out of ten DIFC incorporations, and for good reason. The other forms exist for specific problems: a branch when the parent needs to be the contracting party, a partnership when the economics do not follow the capital, a Prescribed Company when there is nothing to operate.
Compared
| Structure | Liability | Minimum owners | Audit |
|---|---|---|---|
| Private Company Limited by Shares | Limited to the amount unpaid on shares, which is nil where shares are fully paid | 1 shareholder, individual or corporate, any nationality | Audited accounts under IFRS unless a narrow exemption applies |
| Public Company | Limited by shares | 1 shareholder, with no upper limit | Audited accounts required |
| Recognised Company | Unlimited exposure for the overseas parent | Not applicable. The parent is the entity | Files the parent's audited financial statements |
| Limited Liability Partnership | Limited for partners, subject to their own negligence | 2 partners | Accounts required, audit depending on size and activity |
| Limited Partnership | Unlimited for the general partner, limited for limited partners | 1 general partner and 1 limited partner | Depends on the structure and whether it is a registered fund |
| Prescribed Company | Limited by shares | 1 shareholder | Generally exempt, while still required to keep accounting records |
LTDPrivate Company Limited by SharesThe default vehicle for almost every DIFC businessRead morePLCPublic CompanyFor entities that will offer shares to the publicRead moreBranchRecognised CompanyA registered branch of a company incorporated elsewhereRead moreLLPLimited Liability PartnershipPartnership economics with limited liability for the partnersRead moreLPLimited PartnershipGeneral partner control with passive limited partnersRead morePCPrescribed CompanyA Private Company with the operating requirements stripped outRead more
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