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.

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.

2. 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.
Benefits of forming business in DIFC

3. 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:
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.

4. 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.

5. 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.
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

6. 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.

7. ■ (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.
■ (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)

8. ■ 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

9. 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.
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:

10. 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.
(b) A Regulatory Business Plan must be submitted (RBP)(RBP)

11. 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.

12. (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
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

13. 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

14. 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.
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

15. 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.

16. 4. How to register a private equity firm in DIFC?
In order to register a private equity firm in the DIFC, you will need
to complete the following steps:
1. STEP 1 – Submission of application form.
2. STEP 2 – Provide necessary information about your company
and provide copies of relevant documents when requested
by the DIFC Authority.
3. STEP 3 – Pay for registration fee at any bank branch in UAE
Dirhams or US Dollars via wire transfer/online banking/at any
branch of Commercial Bank of Dubai or through credit card.
5. How to set up financial services company in Dubai?
To set up a financial services company in Dubai, a company needs
to have a paid up capital of at least Dh500,000. It needs to be
registered with the appropriate authorities and present basic
documentation such as a certified copy of passport, trading
license and memorandum and articles of association.
6. How to setup a regulated license in ADGM?
If you would like to set up a regulated ADGM license, it is best to
start by consulting with the ADGM licensing and regulatory
services. They will be able to tell you whether or not your product
requires a license and how to go about getting one. Before they
can help you, though, they will need an accurate description of
your product.
7. What are the procedures for regulated license in UAE?
The United Arab Emirates has been working to build a regulated
environment for the financial industry. In order to issue a license in

17. the United Arab Emirates, businesses must be registered with
their respective central bank as well as sign a Memorandum of
Understanding (MoU) with Dubai International Financial Centre
Authority (DIFCA). The MoU outlines particular objectives of any
given company’s activities and can also allow certain companies
to make use of foreign currency transactions.
8. How to establish a representative office in Dubai?
A Representative Office (Rep Office) is permitted to carry on a very
narrow set of activities described as ‘marketing’ of financial
services or financial products offered in a jurisdiction outside the
DIFC by a ‘related party’ (i.e., its head office, another branch of the
head office or a Group member).The ‘marketing’ activities of a Rep
Office can include one or more of the following:
1. Providing information about financial services or products
offered by its head office or a Group member outside the
DIFC;
2. Engaging in Financial Promotions (such as holding events
and seminars) relating to the financial products or financial
services referred to above; and
3. Making introductions or referrals to its head office or a
member of its Group for the financial services or financial
products offered by them outside the DIFC
9. Activities not permitted
Arranging deals
Advising
Promoting a third–party products

18. Marketing financial products of a related party located in DIFC
Compliance Requirement
1. Officers required:
2. A resident authorized representative
3. Annual AML return filing
10. Requirements
1. A detailed business plan
2. Corporate documents attested from UAE Embassy in
Country of origin
3. Passport copy of authorized representative (authorized
representative must be a resident)
4. UBO passport copy
5. Financial Regulatory Authority certificate of the parent
11. General Procedure
1. Submission of intent letter to DIFC
2. Initial application with DIFC
3. Submission of Business plan to DFSA
4. Initial Application with DFSA
5. Arranging Meeting with DFSA for presentation
6. Obtaining in Principal approval from DFSA
7. Identifying office space
8. Completion of registration of companies with Registrar for
companies (Office set-up, Visa, bank account opening etc.)
9. DFSA inspections
10. Authorization from DFSA

19. 12. Estimated Timeline
Usually, the time taken for a representative office is 3-5 Months
from the date of submission of interest. However, the timeline
depends on the approval from authority.
13. What is technology license in DIFC?
The Dubai International Financial Centre (DIFC) is in the process of
issuing licenses to companies in the digital technology sector.
They are doing so by way of a licensing framework, which has
been designed to encourage innovation and entrepreneurship in
different areas. This framework will comprise two different types of
license: The Digital Technology Innovation License (DTLI) and the
Digital Innovation Business License (DIBL). There are 37 criterias
that need to be met for any applicant wishing to obtain one, but
these licenses will provide greater legal protection for
technology-related matters.
14.How to get central bank approval for a regulated license in
UAE?
The Central Bank of UAE is the country’s financial regulator and is
responsible for protecting and developing the economic and
financial system of UAE. It oversees the operations of all the banks
in the country, as well as operating licenses for financial
institutions.UAE has recently announced plans to tighten its
already existing regulation for issuing licenses for businesses and
financial institutions in the country.Banks are required to submit
detailed plans detailing their plans for finances, risk management,
effective internal controls for operations for approval. These are all
determined by regulation No. 1 of 2002. The regulation was put

20. into place to ensure respect for UAE’s international commitments
with regard to transparency, accountability and compliance with
international standards in banking systems.
Based on the review of the regulatory business plan, an in
principle approval will be granted, allowing the applicant to
proceed with the remaining formalities, such as appointing
officers and locating office space. The central bank will grant the
final license if all of the conditions have been met.
15. How to register a foundation in DIFC?
The DIFC Authority has issued the following guidelines to help you
set up your own foundation in Dubai International Financial
Centre.
Type of registration: The DIFC Authority recognizes two types of
foundations, private and public, which have different
requirements for operation and registration. Private foundations
must be created to provide a specific charitable or social benefit to
a defined group of people, while public foundations are
established with a social agenda that can span across borders and
geographical regions.
Scope of work: To set up a private foundation you must
demonstrate written evidence of the intended use of the
registered funds.
Determine duration: The term for which the foundation is to
remain active can vary depending on its purpose for public and
private.
Obtain approval: The foundation must be registered with the DIFC
Authority and be approved by its client. Approval is granted after

21. consideration of the foundation’s objectives, activities and benefit
to the DIFC community.
The Dubai International Financial Centre (DIFC) has established a
new license for startups, entrepreneurs, and technology
enterprises. The new Innovation License will bring new sorts of
enterprises to the Centre and is a crucial project for His Highness
Sheikh Mohammed bin Rashid Al Maktoum’s Dubai Future
District. The new license will encourage regional innovation,
creativity, and entrepreneurship by providing commercial
licensing choices at a reduced cost. Companies will also get
discounted entry to DIFC co-working spaces.
Get Free Consultation
DIFC Regulated License | Business Consultancy in DIFC | DIFC License (hlbhamt.com)
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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
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