The Dubai International Financial Centre Venture Studio Regime

The Venture Studio license is a commercial license allowing the incubation of new business ideas and ventures for limited time periods to test the Minimum Viable Product (“MVP”) of such businesses.

The Venture Studio is basically a company incorporated in the DIFC for the sole purpose of (a) Sponsoring Ventures and/or (b) Establishing Venture Studio Companies (as elaborated below).

The Venture Studio would be able to provide services to its underlying (a) Ventures and (b) Venture Studio Companies, such as, but not limited to, treasury services, IT Services, administration services and intra-group, corporate and advisory services.

Accordingly, the Venture Studio would be able to create: 

Option (1) Creating a Venture:

The Venture Studio would create this Venture which would not have a legal personality separate from the Venture Studio. Please note the following:

1. There will be in place a Venture Sponsorship Agreement entered into between the Venture Studio and the Venture as per the DIFC template.
2. In all times, the Venture Studio may not sponsor more than twenty (20) Ventures.
3. The Venture Studio would have to make a separation (separate books and records) between the funds of all Ventures.
4. The Venture would have a permission to remain in the same status as a Venture for a maximum period of 24 months (can be extended by the DIFC upon request). Afterwards, it either automatically converts into a Venture Studio Company or it ceases to work altogether.
5. The Venture Studio can raise only a maximum amount of USD 10 Million per each Venture. This amount includes raising both debt (includes convertible notes and SAFEs) and equity.

AND/OR

Option (2) Incorporating a Venture Studio Company:

This Venture Studio Company would have a separate legal personality from the Venture Studio. In this regard, please note the following:

1. In all times, the Venture Studio may not incorporate more than ten (10) Venture Studio Companies.
2. The Venture Studio Company may not have more than ten (10) shareholders.
3. The Venture Studio Company may not have more than twenty (20) employees.
4. The Venture Studio Company would have a permission to remain in the same status as a Venture Studio Company for a maximum period of 24 months (can be extended by the DIFC upon request). Afterwards, it either automatically converts into a Private Company or it ceases to work altogether.
5. The Venture Studio can raise only a maximum amount of USD 20 Million per each Venture Studio Company. This amount includes raising both debt (includes convertible notes and SAFEs) and equity.