DIFC License Transfer - UAE Freezone Redomiciliation

Transfer a Company from DIFC

The UAE’s evolving regulatory landscape and competitive free zones offer businesses new opportunities for growth. If you’re planning to shift your trade license from DIFC to another free zone, it’s essential to analyze the process, benefits, and possible obstacles

Is It Possible to Transfer a DIFC License?

Yes, DIFC license transfer is possible in the UAE. This can be done by directly transferring the company through redomiciliation. 

How to Transfer a Free Zone License?

The DIFC trade license transfer process involves various administrative steps, and companies should prepare in advance to ensure a smooth transition.

Here’s a step-by-step guide Transfer a DIFC License:

1. Evaluate the New Free Zone

Before initiating the DIFC license transfer, research should be made whether the new free zone allow redomicile if yes, the benefits of the new free zone, including tax incentives, operational flexibility, and strategic location advantages.

2. Shareholders’ Resolution and Corporate Documentation

  • Newspaper publication for Redomicile to be publish 

  • A formal shareholders’ resolution must be passed, stating the intent to relocate.

  • If a shareholder is a foreign company, the resolution must be notarized and legalized by the UAE Embassy and the Ministry of Foreign Affairs.

  • Other documents, such as Director & shareholder Declaration must also be submitted.

3. Apply for Pre-Approval in the New Free Zone

  • Secure pre-approval and reserve a trade name with the new free zone.

  • Meet the initial compliance requirements and pay the necessary fees.

4. Obtain a No-Objection Certificate (NOC) from DIFC

  • Submit a request to the DIFC authority for an NOC confirming their approval for trade license transfer.

  • Cancel establishment card and employees visa in DIFC before obtaining the NOC.

  • Clear all outstanding dues and obligations before obtaining the NOC.

5. Verification of Management & Shareholders

  • The new free zone will verify the identities of shareholders and management.

  • Due to digital advancements, some free zones may allow online verification.

6. Receive a certificate of continuation /License from the New Free Zone

  • Once verification is complete, the new free zone issues a certificate of continuation /pre-license.

  • The company can set up its new office space and obtain approvals required for operational readiness.

7. Obtain an Exit letter from the DIFC

  • DIFC will strike off the name of the transfer entity after receiving certificate of continuation and issue letter to Confirm it.

8. Obtain the Full Trade License from the New Free Zone

  • Once the letter is submitted, the pre-license is converted into a full trade license.

  • The company can now commence business operations in the new jurisdiction.

Key Considerations When Transferring a Free Zone License

  • Financial Impact: Some free zones offer lower fees and incentives to attract investors, making DIFC license relocation financially beneficial.

  • Regulatory Compliance: Each free zone has specific compliance requirements that must be met before trade license transfer.

  • Tax Considerations: Redomiciling the company may offer tax benefits, whereas liquidation and re-establishment could have tax disadvantages.

  • Operational Disruptions: A poorly planned DIFC license transfer may lead to temporary business interruptions.

Limitations and Challenges

  • Not all free zones allow direct trade license transfers; some may require winding up the existing entity and setting up a new one.

  • The process can be time-consuming, especially for companies with complex structures or foreign shareholders.

  • Certain approvals, such as industry-specific permits, may delay the  DIFC license relocation process.

Navigating a DIFC transfer can be complex, requiring strategic planning and compliance with multiple regulatory authorities. we specialize in trade license transfer, business setup, and DIFC license relocation within the UAE, ensuring a seamless transition for companies looking to expand or optimize their operations.

Why Choose CLA Emirates for Your DIFC License Transfer?

As a trusted audit and advisory firm, CLA Emirates brings a rare combination of technical knowledge, local insight, and international standards through our global affiliation with CLA Global. Our specialists in corporate compliance and free zone transitions ensure that your company’s relocation from DIFC is legally sound, operationally efficient, and strategically aligned.

Ready to Relocate Your DIFC Company?

 

Let our experts ensure a smooth and compliant transition.

Call for Consultation
Mr. Ragesh Mattummal | Partner
Mob: +971 50 3578031
Email: Ragesh.Mattummal@claemirates.com

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