Corporate structure
Recognised Company
A registered branch of a company incorporated elsewhere
In short
A Recognised Company is a branch of a company incorporated outside the DIFC. It is not a separate legal person. The overseas parent is the contracting party and carries full liability for the branch's obligations.
- Liability
- Unlimited exposure for the overseas parent
- Governing law
- DIFC Companies Law and Operating Law
- Minimum owners
- Not applicable. The parent is the entity
- Minimum capital
- None at branch level
- Audit
- Files the parent's audited financial statements
Best suited to
- International banks and financial institutions
- Global law firms and professional partnerships
- Corporates needing the parent's balance sheet on regional contracts
Watch out for
- No liability ring-fence between branch and parent
- Document legalisation from the home jurisdiction drives the timeline
- Changes at parent level must be notified to the DIFC Registrar
The trade-off in one paragraph
A branch brings the parent's name, credit standing and track record, which wins work a new subsidiary cannot. It also means every claim against the branch is a claim against the parent. Groups that want the credibility without the exposure use a subsidiary with a parent guarantee on specific contracts instead.
Questions
Does a DIFC branch file its own accounts?
It files the parent's audited financial statements with the Registrar rather than preparing separate DIFC statutory accounts. It still keeps proper records, and standalone figures may be needed for corporate tax.
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