HLB HAMT, as a leading business consultant in DIFC, has a team of capable financial specialists that give crucial advice to businesses looking to establish operations. The team assists with incorporation, government rules, and post-incorporation procedures, starting with consultation services and a fundamental foundation.

1. DIFC Regulated License
The Dubai International Finance Centre (DIFC) formed in 2004 is a sought-after jurisdiction for
financial and banking licenses. Since its start, DIFC has been home to many leading banks, financial
institutions, and insurance companies, serving a large clientele in the region. DIFC follows
international law, which has prompted many global investors to have their presence in DIFC and also
supervises Dubai’s financial enterprises’ strategic growth, operational management, and
administration.
HLB HAMT, as a leading business consultant in DIFC, has a team of capable financial specialists that
give crucial advice to businesses looking to establish operations. The team assists with incorporation,
government rules, and post-incorporation procedures, starting with consultation services and a
fundamental foundation.
FinTech in DIFC
Financial technology (FinTech) is an integral part of the financial services sector’s advancement.
Fintech is progressing, with regulators and governments paying more attention to the influence that
businesses will have on the regional economy. DIFC adheres to stringent data protection measures
that are in accordance with international norms. DIFC, having been named one of the best ten
fintech centres in the world, is ideally positioned to promote this expansion and act as a breeding
ground to leverage its massive potential.
1. Commercial Licenses: DIFC provides specific commercial licenses for FinTech companies,
enabling them to function within the centre while benefiting from top-notch infrastructures
at a low cost. These license holders will also have access to the DIFC work hub, which is a co-
working space.
2. Innovation Testing License (ITL): The DIFC’s regulatory authority, the DFSA, assists ITL
owners in testing unique and innovative financial products, activities, and business
ideas without being subject to regulatory requirements.
DIFC features one of the most comprehensive FinTech and venture capital settings in the region,
with cost-effective licensing choices, suitable laws, innovative programmes, and developmental
start-up financing, since it is the region’s largest financial hub.
DEWS (DIFC Employee Workplace Savings)
The DEWS plan, which was implemented in February 2020 for employees stationed in the DIFC, was
the first of its type in the market to provide a systematic end-of-service benefits plan. Employees can
effortlessly plan for their financial future with this well-funded and professionally sound contribution
plan. DEWS also have a voluntary savings scheme that allows DIFC workers to contribute to their
savings.
By revising the end-of-service benefit plan to meet with worldwide retirement savings norms, the
DEWS support employers and employees and also DIFC’s objective of driving the evolution of the
finance sector in the region.

2. Benefits of forming business in DIFC
The DIFC venture is driven by an economic portfolio that focuses on the development and
creation of financial markets throughout the GCC area. The DIFC was developed to host the nation’s
financial sector that serves as a crossroad between Asia and Europe.
The following are some of the benefits of forming a business in the DIFC:

3. DIFC regulatory entities include:
1. DIFC Authority (DIFC): The DIFC Authority, which was founded as a legal organization
affiliated to the Government of Dubai under Dubai Law No. 9 of 2004, is in responsible of
monitoring the operation and administration of DIFC.
2. The Dubai Financial Services Authority (DFSA): This is a government agency that regulates
the financial services industry in Dubai. The DFSA is the integrated regulator responsible for
the authorization, licensing, and registration of institutions and individuals who intend to
operate financial and operational services in or from DIFC.
3. DIFC Courts (DIFC Judicial Authority): The statutory duty of the DIFC Courts is to properly
execute DIFC’s civil and commercial legislation.
4. The Registrar of Companies (ROC) is a government agency that oversees the registration of
businesses. The ROC is in charge of providing advice, receiving, examining, and processing all
applications filed by potential DIFC registrants wanting to establish a presence in the DIFC.
5. Registrar of Securities (ROS): The ROS is in charge of documenting and registering security
pledged against loans, guarantees, and other financial transactions, and thereby establishing
priority.
6. Registrar of Real Property (RORP): The RORP safeguards the interests of purchasers, sellers,
and lessees.
How to set up a company in DIFC?
DIFC company registration, like any other business setting, is performed through a procedure that
the firm owners are obligated to follow. When the processing of their DIFC company registration
follows the right regulations, the businessmen’s schedule and timeframe for beginning their firm can
be met.
For setting up a business in UAE, there are two types of licenses available.
1. Regulated License – This refers to any type of registration that is associated with banking
and finance-related business operations.
2. Non–Regulated License – This refers to any type of business registration that isn’t
associated with banking or financial transactions.

4. Businesses wishing to setup and do business in the DIFC must first apply for a DIFC entity’s
incorporation or registration. They can do so by applying to the Registrar of Companies (ROC), who
will assist, collect, examine, and verify all submissions from the applicants.
Non-Financial & Financial services in DIFC
Non-financial Service
The most effective financial hubs generate a wide range of economic activities. Non-financial
companies supply the service that main financial companies uses to perform profitably. Business
consultants, legal companies, and professional service providers are among them. Nevertheless, not
all of it focuses on work. These non- financial services contribute to the development of a recreation
and lifestyle setting. Professionals seek a luxury environment, as well as personal services like
tailoring, salons, gyms, retail outlets like restaurants and coffee shops, and even fine dining
alternatives to amuse their clients. They also give non-financial activities to establishments like
hotels and educational institutions too.
Financial Service
The Dubai Financial Services Authority, or DFSA, requires firms involved in obtaining financial
services from the DIFC to file proposals. The sort of business that the applicant wants to run
determines the type of license that is needed.
It’s also worth noting that in order to obtain a full banking license (i.e., a DIFC Category 1 license),
the DIFC entity must be either a branch or a subsidiary of a bank regulated by a regulator in a
jurisdiction acceptable to the DIFC, or a joint venture between two or more banks regulated in a
jurisdiction satisfactory to the DIFC. The kinds of financial activities that an Authorized Firm is
authorised to offer to define the range and category of an Authorised Firm’s license. Let’s look at
how financial services are categorized.
▪ (Category 1) Accepting Deposits/Managing an Unrestricted Profit Sharing Account A
Category 1 Authorised Firm is one that has been granted permission to provide the financial
service of accepting deposits or managing a profit-sharing investment account (received on
an unrestricted basis). Although an authorised Firm in this category may be licensed to
provide other financial services, its authorization to accept deposits and/or manage a profit-
sharing investment account is what distinguishes it as a Category 1 Authorised Firm.
▪ (Category 2) Principal Investor (not matched)/Providing Credit This is a licensed authorised
Firm that provides the financial services of dealing in principal investments and providing
credit. In addition to this activity, an authorised Firm in this category may be authorised to
conduct other Financial Services from Categories 3A, 3B, 3C, or 4, provided that it is not
authorised to provide Financial Services from Category 1.
▪ (Category 3A) Dealing in Investments as Principal/Dealing in Investments as Agent An
Authorised Firm is permitted to take out one or more of the Financial Services of:
1. Dealing in Investments as Principal (where it only does so as a Matched Principal)
2. Dealing in Investments as Agent (where it only does so as a Matched Principal)
An authorised Firm in this category may be permitted to undertake other Financial Services found in
Categories 3B, 3C, or 4, but it may not conduct any Financial Services found in Categories 1 or 2.

5. ▪ (Category 3B) Providing Custody (for a Fund)/Acting as a Trustee of a Fund This type of
authorised Firm is allowed to provide custody (but only for a Fund) and act as a trustee for a
Fund. This type of authorised Firm can provide financial services in Categories 3C and 4, but
not in Categories 1, 2 or 3A.
▪ (Category 3C) Managing a Collective Investment Fund/Managing Assets An authorised Firm
in this category may be licensed to provide one or more of the following Financial Services:
1. Managing a Collective Investment Fund
2. Managing Assets
3. Providing Trust Services as a trustee of an express trust
4. Providing Custody (other than for a fund), and
5. Managing a Profit Sharing Investment Account (received on a restricted basis)
Financial Services in Category 4 can be provided by an authorised Firm with a 3C license, but they
cannot be provided in Categories 1, 2, 3A, or 3B.
▪ (Category 4) Credit Arrangements or Investment Deals / Financial Product Advice
1. Organising Investment Deals
2. Recommending on Financial Products
3. Arranging Custody
4. Insurance Intermediation
5. Insurance Management
6. Operating an Alternative Trading System
7. Providing Fund Administration
8. Coordinating Credit and Advising on Credit
9. Operating a Fund raising Forum, and
10. Providing Trust Services
▪ (Category 5) Islamic Financial Institutions
An Islamic Financial Institution administers a profit-sharing investment account and
conducts its whole operation in compliance with Sharia standards (received on an
unrestricted basis).
The Dubai Financial Services Authority (DFSA)
The Dubai Financial Services Authority (DFSA), an independent regulator that awards licenses and
controls the operations of all banking and financial institutions in DIFC, has been at the crux of the
DIFC paradigm. The DFSA has figured prominently in ensuring that financial institutions have a
strong, resilient, safe, and growth-oriented infrastructure for their operations. The DFSA takes a risk-
based approach to regulation. The independent regulator focuses and prioritises its efforts on
avoiding unacceptably high and needless risks. As a result, the DFSA is dedicated to achieving a high
level of competence in all aspects of its administrative and consultative operations.

6. Regulated license registration in DFSA
Businesses must be approved and get a license from the DFSA in order to perform financial services
in or from the DIFC. The DFSA issues authorization in the format of a license that outlines the types
of Services that can be done. Businesses must be registered with the DFSA in order to conduct
designated non-financial business. The DFSA performs its first evaluations as a risk-based regulator
to verify that enterprises follow the DFSA’s ethical guidelines.
It’s important to take the time to prepare all of the required papers and paperwork before
submitting an application. It is critical to plan ahead of time, whether you are a new investment firm
or an existing payment institution looking to expand your business in Dubai’s International Financial
Centre.
By using the most recent DFSA application forms, you can prevent having to redo the procedure due
to obsolete requirements. Furthermore, confirm that the DFSA recognises the business operations
to be offered and that they correspond to certain financial and associated services.
In the United Arab Emirates, the procedure for obtaining authorization is as follows:
To gain license from the relevant authority, an applicant company must go through a formal process.
For example, obtaining approval from the DFSA entails the following steps:
(a)Submitting a Letter of Intent – A Letter of Intent typically contains the following topics:
▪ The applicant’s objective and the actions that will be carried out;
▪ Grounds for establishing a business in the DIFC;
▪ Corporate structure and founding directors
▪ Resources and functions – which will be based in the DIFC entity and what their roles will be.
▪ The need for permanent office space.

7. (b) A Regulatory Business Plan must be submitted (RBP)(RBP)
The RBP should include the plan and justification for establishing a DIFC operation, as well as how
the company will be managed and controlled. The DFSA must comprehend the applicant firm’s
business model in order to guarantee that it is permitted for the appropriate financial services,
investment types, and client categories, as well as to examine the adequacy of the applicant firm’s
resources. The applicant company will be required to:
▪ Determine all financial services and other activities that will be provided;
▪ Compile a list of all potential commercial and regulatory risks;
▪ Describe in broad terms how it intends to monitor and manage these risks;
▪ Account for any planned activities.
(c) Additional DFSA Application Forms and accompanying paperwork must be submitted
From the date of receipt of the applicant firm’s full and complete application, processing each
application for authorisation.
(d) Performing a thorough review procedure

8. All applications are subjected to a thorough evaluation by the DFSA. Multiple rounds of follow-up
questions, explanations, and even an interview to clearly understand the project and their duties are
all part of this procedure.
(e) In-Principle approvals are granted
The DFSA issues an In-Principle Approval (IPA) after a successful assessment process. According to
the IPA, the DFSA invites the user to the center if all of the IPA’s prerequisites are met.
(f) ROC Process of DIFC
The DIFC Registrar of Companies (ROC) is in charge of processing applications for legal organisations
to be established in the DIFC. The DIFC Commercial License is issued at the successful completion of
the procedure.
Basic guidelines of financial categories
The licensed firm may only execute the operations for which it has been officially authorised in each
DIFC financial category. Authorized enterprises must obey the DFSA rulebook’s guidelines, which
include the following restrictions:
1. Clients may only be offered items or services that comply with the DFSA’s conduct of
business client categorization rules.An authorised firm must guarantee that its business and
financial operations are conducted in accordance with the DFSA and DIFC’s rules and
regulations in all aspects. Breaching the laws and regulations may result in revoking the
authorised firm’s license. This might be in relation to one or more of the company’s financial
services. Such repercussions may also apply to authorised individuals or other persons
performing any tasks in the authorised firm if the DFSA deems it essential. Any violation of
the aforementioned people’ requirements empowers the DFSA to prevent them from
executing their functions, or, in the case of authorised individuals, to suspend or revoke their
status.

9. Frequently Asked Questions – Regulated License
1. How to set up an insurance advisory firm in UAE?
To start an insurance business in Dubai, you must first register with the Dubai Economic Department
and then receive a license from the Insurance Authority. The type of services supplied determines
which operating license is awarded.
2. How to apply for a regulated license in DIFC?
The Department of International Financial Centre, or DIFC, performs a wide range of regulatory
functions for the DIFC which are to help protect the financial system and markets in Dubai. As part of
its duties to regulate licensing in Dubai, they issue licenses in order to carry out business in Dubai. It
is necessary for any company that conducts business in Dubai to be licensed to do so by the DIFC.
Given below are the stages for applying a license.
3. How to establish a crowdfunding platform in UAE?
It may seem like an impossible task, but establishing a crowdfunding platform in UAE isn’t as difficult
as you might think. Before establishing your crowdfunding platform in UAE, it’s best to formulate an
idea for a project you want to fund. You can’t just launch a campaign for no reason – people want to
know the purpose behind your project and what you hope to achieve by receiving donations.
Anyone can now start their own crowdfunding campaign with the help of online platforms. These
websites allow entrepreneurs to create profiles where they can post about their planned project,
including videos, information about the product or cause, and a deadline for fundraising. A properly
executed crowdfunding campaign can be very effective at raising funds. They allow you to connect
directly with potential investors or customers, building your brand one person at a time.
Get for More - https://hlbhamt.com/difc-regulated-license/

10. CONTACT US
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates.
Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
WhatsApp: +971 56 219 1607