Valsen Fiduciaries Funds

Dubai Public Fund

The Dubai Financial Services Authority (DFSA) regulates Public funds under the Mutual Fund and Hedge Fund Act, 2008. This Act sets out the guidelines pertaining to the application and licensing of mutual funds and other collective investment entities in Dubai.

About a Dubai Public Fund

A Dubai Public Fund is recognised as a mutual fund and is neither a Private nor a Professional Fund. A Public Fund is allowed to market and invite the general public to invest in the fund.

Vanuatu Foreign Mutual Fund Legal Requirements

RequirementsDescription
  1. Applicable legislation

DIFC Collective Investment Rules and Law

Collective Investment Law of 2010

  1. Supervising Authority

Dubai Financial Services Authority (DFSA)

  1. Corporate vehicle permitted

Investment Companies in any jurisdiction

Investment Trusts in any jurisdiction

Investment Partnerships in any jurisdiction

Protected Cell Company in any jurisdiction

  1. Share capital or equivalent
    • Minimum subscription

A Public Fund is open to both professional and retail investors, with a minimum of 100 unitholders who invest by way of public offer. There is no prescribed minimum subscription.

    • Minimum investors

None

  1. Directors / Partners / Trustees
    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required
 
    • Custodian
      • Custodian required
Yes
      • Local custodian required

No

      • Eligible custodian

an Authorised Firm whose Licence authorises it to Provide Custody Services;

an Authorised Firm that is a Bank;

an Authorised Market Institution;

a legal entity that is authorised and supervised by a Financial Services Regulator in a Recognised Jurisdiction for providing custody services in respect of a Fund and is subject to a minimum capital requirement of $4 million or its equivalent in any other currency at the relevant time and has had surplus revenue over expenditure for the last two financial years;

    • Fund manager / Investment manager
      • Fund manager required
Yes
      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Any licensed fund manager worldwide

    • Fund administrator
      • Fund administrator required
Yes
      • Local fund administrator required

Yes

      • Eligible fund administrator

An Authorized firm whose license authorizes it to act as the fund administrator of an exempt fund and meets any additional criteria, requirements or conditions that may be prescribed in the Rules.

    • External auditor
      • External auditor required
Yes
      • Local external auditor required

Yes

      • Eligible external auditor

The auditor must be registered by the DFSA and appointed in accordance with the Regulatory Law 2004.

  1. Asset Requirements
    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees
    • License application fee

USD 1,000

    • Annual license fee

USD 1,000

  1. Estimated license processing duration

3 Weeks

Ongoing Obligations

Requirements Description
Monthly obligations
None
Quarterly obligations
None
Annual obligations
Submit annual audited accounts to DFSA within 4 months of the financial year end.
Other obligations
None
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
None
Withholding Tax
No withholding tax is payable on dividends and/or interest payable.
Value Added Tax (VAT)
None
Stamp duty Act
None
Trades Tax Act
None
Immovable Property Transfer Restriction Act
None
Immigration Decree
Mutual funds are allowed to employ expatriate employees.
Exchange Control Act
The provisions of the Exchange Control Act do not apply to mutual funds.
Foreign Earnings Act
The Foreign Earnings Act is not applicable to mutual funds in its entirety.

Benefits of a Dubai Public Fund

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory
  • Less stringent regulations by the DFSA