Dubai International Financial Centre (DIFC) is the world’s leading financial and lifestyle hub. They
provide a platform for businesses to grow and thrive. They are located in the heart of Dubai and
have modern infrastructure, business-friendly policies, and global connectivity. Many companies are
drawn to setting up their operations here. To open a financial service or fintech in this location you
would require a DIFC license.
In this guide, let’s explore the what is DIFC license, different types, and the steps you can follow to
apply for one.
Key Takeaways
- Preparation is the key to obtaining a license. So have a thorough understanding of regulatory
requirements that are needed for a smooth application process. - The cost of a DIFC license is between AED 44,000 to AED 183,000.
- It takes 2 to 8 weeks of time to get a DIFC license.
What is a DIFC License ?
If you wish to run a business under the Dubai International Financial Centre (DIFC), you need to get a
DIFC License for legal authorization. A DIFC License is issued by the Dubai Financial Service Authority
(DFSA). Companies with this license enjoy operating in an international financial center that has
independent laws and courts based on English law.
Types of DIFC License
There are several types, including
- Financial Services License: This is suitable for companies involved in banking, insurance,
wealth management, asset management, and other financial activities. These businesses are
overseen by the Dubai Financial Service Authority (DFSA) - Non-Financial Services License: This license is ideal for businesses like law firms, accounting,
consultancy and other professional services. - Innovation License: Companies innovating in technology and financial services will require
this visa, especially startups. - Retail Business License: This license is a must if you want to set up retail shops or
restaurants in the DIFC area. - Holding Company License: For entities who are focussing on managing other companies,
investments, or properties.
Benefits of DIFC License
There are various benefits for businesses operating within the premier financial hub. Here are some
key advantages:
- They have a robust regulatory framework as DIFC operates under its own legal system and authority, the Dubai Financial Service Authority (DFSA). This framework is based on international best practices.
- Companies who have DIFC licenses enjoy 0% corporate tax for 50 years and no personal income tax.
- The company gets 100% foreign ownership. You don’t need local ownership.
- The strategic location setup of DIFC provides businesses across Europe, Asia, and Africa. It is beneficial for companies who want to expand their brand internationally.
- DIFC boasts world-class infrastructure with state-of-the-art facilities and amenities. It is designed to support modern-day business and enhance operations.
- Highly skilled workforce from around the world are attracted to DIFC. The high-quality talented professionals benefit the business.
Eligibility to Own a DIFC License
To get a DIFC license you have to meet certain eligibility criteria:
- You have to own a business that aligns with the categories permitted by DIFC. This includes financial services, technology-related or retail stores.
- A business plan with details of the proposed business activities and demonstrate that the business falls under the desired category.
- Ensure that you have a physical presence in DIFC.
- Minimum capital requirements must be met.
- The individuals involved in the business should have no criminal record.
- Pay the required licensing fee and other costs associated with it.
Meeting these eligibility criteria is important for successfully getting your DIFC license.
Documents List
The documents that you have to provide are
- A filled-out and completed application form.
- Detailed business plan describing the nature of business, market, and finances.
- Passport copies of all shareholders and directors.
- Information of all shareholders and directors.
- Proof of address, and utility bills of all entities to confirm their residential address.
- No Objection Certificate from sponsor or partner if applicable.
- A lease agreement for office space in DIFC
Steps to Apply for DIFC Licence
Once the documents are ready, follow these easy steps to get the DIFC license:
Step 1: Choose a Business Activity: The first step is to choose the type of business activity and which
license is required. There is a range of licenses, you will have to choose which suits you best.
Step 2: Pre-Application Consultation: It is advisable to have a consultation with the DIFC’s business
development team. They will help and guide you to understand the requirements. They analyze
whether your business aligns with DIFC regulations.
Step 3: Prepare Required Documents and Submit: Depending on the type of business structure, you
will have to submit the documents. Check out the list of documents section. Once they are ready,
submit the application through the DIFC Client Portal for review.
Step 4: Meet Regulatory Requirements: A regulatory approval from DFSA has to be obtained if you
are setting up a financial entity.
Step 5: Secure office space: Having a physical office space is mandatory. Register an office in a DIFC
commercial space or co-working space.
Step 6: Final Approval and License Issuance: Once the office space and regulatory approvals are
completed, you will receive the final approval. The DIFC license will be issued after final approvals.
Cost to get a DIFC License
If you have a clear idea of “How to get a DIFC License?” then let us check out the cost and time
frame to obtain it.
| Item | Details |
|---|---|
| Application Fees | AED 3,670 to AED 14,700 |
| Annual License Fees | AED 44,000 to AED 183,000 |
| Office Space Rental | Co-working spaces: AED 73,400 to AED 110,200/year. Dedicated offices: Typically higher |
| Regulatory Fees (for Financial Services) | Varies based on the nature of services provided |
| Miscellaneous Costs | Legal fees, document preparation, consultancy fees |
| Time Frame (Standard License) | 2 to 4 weeks |
| Time Frame (Financial Service License) | 6 to 8 weeks or longer |
F&Q
Yes, DIFC encourages startups, especially in the fintech sector. They provide special support,
mentorship, and licensing options to help startups to establish their business.
No, local partners are not necessary. Business can fully own their operations. This attracts
foreign investors to establish their presence in the UAE.
The license is valid for 2 to 5 years. Companies must renew it annually to maintain their
operations. You can contact Emifast for further help.
Comments are closed