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Financial Technology License | DIFC FinTech License in Dubai | FinTech UAE

July 25, 2021by Mohammed Rahali

Financial Technology License | DIFC FinTech License in Dubai | FinTech UAE

The Dubai International Financial Centre (DIFC) has an enabling environment for Financial Technology firms, which contribute to the development of the financial services and technology industry, to thrive in. FinTech Licenses can be obtained in the Dubai International Financial Center (DIFC), which is one of the two Financial Free Zones within the UAE.

At the heart of the DIFC model is an independent risk-based regulator, the Dubai Financial Services Authority (DFSA), which grants licenses and regulates the activities of all banking and financial institutions in DIFC. The DIFC is a broadly based recognized and renowned international financial center serving local, regional, and international institutions, and grants permission for different categories of Financial Licensing in DIFC. The FinTech firms in the DIFC are not always regulated. Some firms may be regulated due to the more sensitive or riskier nature of their business, while other firms are not. This decision is always at the authorities’ discretion.

Wincore Advisory Group’s structuring team will advise you on the best structuring to establish your UAE presence, establish your branch or representative office or set up your FinTech License Company in DIFC, whilst assisting you in fulfilling all regulatory licensing with ROC (Registrar of Companies), DED (Department of Economic Development), Freezone Authority and the Regulatory Authorities.

Benefits of a DIFC FinTech License in Dubai

  • Access to world-class co-working space;
  • Access to an ecosystem of fellow technology companies;
  • Access to the leading venture capital firms in the region;
  • Access to residence visa;
  • 100% foreign ownership;
  • 0% corporate tax;
  • 0% personal income tax;
  • 5% VAT only;
  • Access to a tax-efficient transaction structuring;
  • No restriction on capital repatriation;
  • No currency restrictions;
  • No restriction on foreign talent or employees employment;
  • US$ denominated economic environment;
  • Responsive Authorities.

DIFC FinTech License Capital Requirements

  • Base Capital – US$ 10,000
  • Expenditure based capital – US$ 150,000
  • Capital Requirement is not applicable to a Branch set-up of an existing regulated bank.
  • Capital Plan must be captured in Internal Capital Adequacy Assessment Process Report

Note that additional capital requirements may be imposed by the authorities upon review of the application.

 

How Can Wincore Assist You?

  • Introduction to the Regulator
  • Draft of Regulatory Business Plan (RBP) (Application Forms, Business flow processes & charts)
  • Preparation of Financial model for 3 years and draft of ICAAP and IRAP report.
  • Preparation of policies and manuals (Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interests, Business Continuity Plan etc.)

AUT – CORE: this form must be submitted by all applicants applying for a license to carry out one or more financial services in or from DIFC. It covers information on the applicant, its activities, prospective clients and controllers;

AUT – IND: this form must be submitted by the individuals holding a mandatory function including directors, senior executive officer, finance officer, compliance officer and money laundering reporting officer; and

AUT-AMS: this form must be submitted by applicants applying to conduct financial services relating to arranging credit or deals in investment. The applicant will be required to submit this form as one of the Proposed Activities of DIFC CO, including arranging credits and investment deals.

  • Draft of regulatory application for the company and individuals
  • Submission of Regulatory Application (with Policies and appointment of SEO, FO, MLRO, RO, CO)
  • Provision of full-time functions

SEO – Senior Executive Officer

FO – Finance Officer

RO – Risk Officer

MLRO – Money Laundering Reporting Officer

CO – Compliance Officer Initiation of the entity incorporation process

  • Office lease
  • Introduction to the UAE Bank for opening an Account
  • Issuance of Regulator’s financial services license

 

Wincore Advisory Group provides strategic assistance and coordination services on establishing FinTech Firms in the DIFC. Our team of senior-level compliance and legal advisors, combined with sophisticated corporate service expertise, can provide the highest quality advisory and set up services for regulated and unregulated set-ups, at a competitive cost and within an efficient and respected processing timeline.

For other Financial Licenses in DIFC, visit this page for more information.

If you would like to schedule your initial consultation for obtaining a DIFC FinTech License, don’t hesitate to contact our team of advisors today at +971 4 221 2602 or contact@wincoreadvisory.com.

 

mm

Mohammed Rahali

Managing Partner | E: m.rahali@wincoreadvisory.com | M: +971 (0) 55 138 9591

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