When it comes to raising capital, one of the biggest challenges for businesses is managing risk—especially the risk of exposing shareholders and investors to potential liabilities. But what if there was a way to raise funds without this concern? The Prescribed Company (PC) in Dubai International Financial Centre (DIFC) is a legal structure that enables businesses to raise capital with confidence, offering robust protection for both shareholders and investors against any associated risks.
A Prescribed Company in the DIFC offers the best of both worlds: it attracts investors with clear legal protections, and it shields shareholders from liabilities tied to funded projects. Whether you’re looking to expand or bring new ideas to life, DIFC PC for raising capital provides a reliable solution for investor friendly asset protection while ensuring a risk-free process for all parties involved.
Let’s explore how this works in practice with a hypothetical example. Here’s how a company can use the DIFC PC for raising capital while ensuring that risk stays firmly under control.
Case Study:
A business with ambitious growth plans faced a dilemma: They needed to raise funds but didn’t want to risk their personal assets—or those of their investors—being tied to the outcome of the funded projects. The stakes were high, and they needed a solution that offered safety and certainty.
The Smart Decision: Choosing the DIFC PC for Raising Capital
After exploring various options, the shareholders made a bold move: They opted for DIFC PC for raising capital. Here’s why it was the perfect choice:
- Zero Liability: The PC would serve as the legal entity for fundraising, meaning it would shoulder the responsibility for liabilities, not the shareholders or investors.
- Attracting Investors: With the right holding structure in place, investors would know their involvement was financially safe—helping them feel more confident in backing the business.
- Compliance Made Easy: DIFC’s robust regulatory environment made sure everything was above board, offering both security and simplicity.
How the DIFC PC for Raising Capital Empowered the Business to Secure Funds Without Risk?
- Creating the Perfect Structure: With expert advice, the business crafted a Prescribed Company that would be the sole vehicle for fundraising, fully compliant with DIFC regulations.
- Smooth Incorporation: They sailed through the incorporation process—setting up the Articles of Association, choosing directors, and registering with DIFC—all while staying focused on their fundraising goals.
- Investor-Friendly Mechanism: The fundraising process was designed to make things simple and transparent for investors. No liability = no risk. It was a win-win.
The Big Results:
What happened next? The company saw some major wins:
- Risk-Free Raising of Capital: Shareholders and investors were both completely shielded from any liabilities. The Prescribed Company was the only party responsible for keeping personal assets safe.
- Investor Confidence Soars: With a solid structure like DIFC PC for raising capital in place, investors lined up to get involved, knowing their investments were secure and well-managed.
- Boosted Credibility: The decision to establish a Prescribed Company not only protected the business but also enhanced its reputation in the market. Being compliant with DIFC’s high standards made it a trusted partner for investors.
- Tax Efficiency: On top of the protection and credibility, the company also enjoyed tax advantages through DIFC’s corporate tax regime, making every penny work harder.
Simplify Your DIFC Entry: DIFC PC for Raising Capital and More with MS
The above hypothetical case study is just an example of how the DIFC PC can be an adequate structure to onboard investors. At MS, we specialize in setting up DIFC PC for raising capital, offering expert guidance for a smooth and efficient setup. But that’s not all—we also focus on all other aspects of Prescribed Companies, ensuring that your legal, compliance, and operational needs are fully covered. Whether it’s raising capital or other business objectives, we make your entry into DIFC seamless and hassle-free. Start your success story with MS today!
