The Dubai International Financial Centre (DIFC) is a special economic zone that specifically caters to businesses in finance, legal services, and tech innovation. Situated at the heart of Dubai, DIFC has its own authorized system which is based on common law. The Free Zone is home to many entities like global banks, investment firms, and professional service companies that use the DIFC license to access markets across the Middle East, Africa, and South Asia.
By obtaining a DIFC license, businesses can benefit from 100% foreign ownership, zero taxes, geographical location, cutting-edge infrastructure, and easy access to an esteemed business environment. If you are looking to establish your business presence in this prestigious location in Dubai, then this guide is for you. It explains the key requirements and procedures to obtain a DIFC license and the essential requisites to make the process smooth and simple.
DIFC License: Explained
Issued by the DIFC authority, the DIFC license is a regulatory permit that allows businesses to operate within the DIFC zone. It is a globally recognized financial hub that presents a supportive environment for businesses operating in the finance, legal, and professional service sectors.
Companies with a DIFC permit can engage in a wide range of financial and professional services, including:
- Financial Services:Banks, insurance companies, investment firms, asset managing companies, fintech startups, and other financial institutions.
- Professional Services:Law firms, accounting and bookkeeping firms, consultancy firms, and other specialized service providers.
- Retail:Shops, restaurants, and other retail businesses.
- Tech and Innovation:Fintech companies, blockchain, and other technology-driven sectors.
Benefits of acquiring a DIFC license
Here are some key benefits that you can avail from obtaining a DIFC license:-
- Foreign ownership – Foreign entrepreneurs and investors operating their businesses in the DIFC can enjoy full ownership.
- Tax benefits – DIFC companies operate in a favorable tax regime, which includes a 0% corporate tax rate.
- International recognition – The regulatory framework of DIFC is recognized globally which helps in improving the credibility and reputation of businesses operating in the zone.
- Access to global markets – Companies with DIFC licenses can easily access global markets and lucrative business opportunities.
- World-class infrastructure – The DIFC free zone offers exceptional infrastructural facilities to companies operating within it. These facilities include modern office spaces, advanced technology, excellent connectivity, etc.
- Regulatory support – The financial entities in the DIFC zone are regulated by the Dubai Financial Services Authority (DFSA) which ensures that the companies comply with global standards.
Types of licenses in DIFC Free Zone
There are different types of licenses issued in the DIFC, each catering to specific business activities. Hence, companies can choose the suitable one based on the nature of their business –
Financial services license: Generally issued to banks, insurance companies, investment firms, asset managers, fintech companies, and other financial institutions. These entities are regulated by the DFSA, which ensures they meet international financial and regulatory standards.
Non-financial services license: Ideal for professional service providers or businesses offering professional services, such as law firms, consultants, etc. These firms are generally not regulated by the DFSA unless they engage in financial services.
Retail business license: Issued to retail businesses such as shops, cafes, restaurants, and other outlets that are willing to operate within the designated retail spaces of the DIFC. The activities covered in this license include the sale of goods, food and beverage services, beauty services, and other retail activities.
Innovation license: Specifically designed for tech startups, this license covers fintech, blockchain, artificial intelligence, and other innovative technologies. The Innovation Hub initiative of DIFC facilitates startups in DIFC by reducing their license fees and offering flexible office options.
With the expertise and experience of Shuraa consultants, navigate the regulatory landscape of DIFC smoothly and effortlessly.
Documents required for DIFC license application
The documentation requirements may vary depending on the type of license applied for and the nature of the business. However, the common documents required for this process include:-
- DIFC business application forms
- Passport copies of company shareholders & directors
- Business plan
- Lease agreement
- Corporate documents (if opening a Branch or Subsidiary)
- No Objection Certificates, if applicable
- Bank reference letters
Guide to obtaining a DIFC license
The DIFC licensing procedure involves several stages. Here’s a step-by-step process to guide you through them:-
- Business activities and license selection – Begin with determining the type of activities you wish to carry out within your organization in the DIFC Free zone. For example, financial services, professional services, retail, or innovation. Based on your selection, choose an appropriate license from the options available.
- Document preparation and submission – To prepare for the license application, you need to arrange certain documents and upload them on the DIFC’s online portal along with the application form. You may also be required to provide key details about your business.
- Office space selection – Businesses registered in the DIFC are required to have an office or physical presence within the region. The available options include dedicated offices, flexi-desks, or co-working spaces. You can choose a facility based on your business needs and budget. Once finalized, prepare a lease agreement and submit it as part of the licensing process.
- DFSA approval – Businesses that fall under the category of regulated financial services need to seek approval from the DFSA. They need to provide details of the company’s compliance policies, financial documentation, and risk management strategy.
- Fee payment – After obtaining the required approvals, you need to secure a suitable office space and pay the necessary licensing and registration fees to the concerned authorities.
- License Acquisition – Once all the above formalities are completed including document approval, office space, and fee payment, you will receive your business license from the DIFC which will allow you to officially operate within the DIFC.
- Bank account setup – Upon receiving the DIFC license, you can proceed to open a corporate bank account in a local or international bank in Dubai to manage your business finances.
Depending on the complexities of the business and fulfillment of regulatory requirements, the process may take up to 4-6 weeks to complete. For a quicker and smoother business setup experience, we recommend getting assistance from Shuraa experts.
Cost of DIFC license
The DIFC license cost may differ depending on the specifics of your business, such as the office space, the type of business license, and the number of employees. However, the typical costs associated with this process are as follows: –
- Application and license fees
- Office space rental
- Regulatory fees
- Visa and employment fees
Shuraa Business Setup offers reasonable packages that are tailored to specific business needs that will help streamline your licensing and registration process and manage expenses.
Choose Shuraa to secure your DIFC license
Obtaining a DIFC license can be your golden ticket to operating your business in one of the top financial centers in the world. No time is better than now to take that exciting step forward. Shuraa Business Setup will make the process much easier and seamless. Their advisors are well-versed in all the rules and regulations governing the DIFC business landscape, and hence, can support you every step of the way by handling the business registration requirements. Moreover, their affordable and timely services are tailored to satisfy your business needs and also ensure that your business aligns with the standards of the DIFC authorities.
Contact Shuraa today!
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