Regulated License in UAE (Banking & Financial Services License in UAE)
The UAE’s emergence as a global center has been propelled by progress in banking, financial and corporate services that happened during the last few decades. Banking and other financial institutions are authorized and supervised by several regulators, which contribute to Dubai being a strategic location in the UAE. The Dubai Financial Services Authority (DFSA) is the regulator for all regulated financial operations in the Dubai International Financial Centre (DIFC).
The Financial Services Regulatory Authority (FSRA) is the supervisor for all regulated financial operations in the Abu Dhabi Global Market (ADGM). For onshore UAE banking and lending operations, the UAE Central Bank is the financial services regulator. United Arab Emirates being the global hub for trade, tourism, and many other businesses, an increasing number of financial and banking institutions are establishing their presence in the UAE. With the new regulations on digital currencies, the UAE will become one of the most preferred jurisdictions for financial services.
Innovative People
Brighter Futures.
Regulated License in UAE
Any business activity in Dubai, whether in the free zone or on the mainland, requires a license. This is the company’s permission to engage in specific commercial operations. The licenses, which are granted to firms in the UAE, are for pre-defined operations, are valid for one year, and must be renewed annually. Regulated licenses are mostly established at DIFC, ADGM, or in the mainland, which is governed by the central bank of UAE.
Crypto license
Obtaining a cryptocurrency license in the UAE allows businesses to operate legally within the dynamic digital asset market. The process involves registering with relevant economic zones, such as DMCC and ADGM, which provide a regulatory framework for cryptocurrency activities. Companies must comply with local labor laws, secure necessary work permits, and ensure adherence to stringent security measures. The UAE’s favorable business environment, characterized by zero corporate tax and the ability for 100% foreign ownership, enhances the attractiveness of obtaining a crypto license. This license enables companies to issue digital currencies, manage assets, and establish exchanges, paving the way for growth in the fintech sector.
Banking license
The Abu Dhabi Global Market (ADGM) offers a Financial Services License tailored for banking institutions. This license permits entities to engage in various banking activities, including accepting deposits, providing loans, and offering financial products. Operating under a legal framework based on English common law, the ADGM provides clarity and confidence to banking businesses. Additionally, there are significant tax advantages, as the ADGM has no corporate or personal income taxes. The streamlined registration process allows companies to get started quickly while benefiting from a supportive ecosystem that promotes growth and innovation within the banking sector.
Insurance License
To establish an insurance brokerage in the UAE, obtaining an insurance license is essential for legal operation under the Insurance Authority (IA). This involves incorporating the business with a minimum capital of AED 3 million (or AED 10 million for foreign branches). A bank guarantee and a professional indemnity insurance policy are required. The brokerage must employ qualified staff, including a General Manager and specialized professionals. Compliance with local labor laws, maintaining financial solvency, and ensuring proper facilities are crucial. Additionally, brokers cannot operate in multiple roles without separate licenses, and contracts with insurers must adhere to regulatory guidelines.
Dubai International Financial Centre (DIFC)
- 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.
Abu Dhabi Global Market (ADGM)
- The Abu Dhabi Global Market is a world-renowned and award-winning international financial center located on the United Arab Emirates’ Al-Maryah Island (UAE). It was founded as a Financial Free Zone (FFZ) in the Emirate of Abu Dhabi in 2015 by Federal Decree No. (15) Of 2013, in accordance with UAE laws, including Abu Dhabi Law No. 4 of 2013 concerning the Abu Dhabi Global Market (“ADGM Law”).
Central Bank of UAE
- The Abu Dhabi Global Market is a world-renowned and award-winning international financial center located on the United Arab Emirates’ Al-Maryah Island (UAE). It was founded as a Financial Free Zone (FFZ) in the Emirate of Abu Dhabi in 2015 by Federal Decree No. (15) Of 2013, in accordance with UAE laws, including Abu Dhabi Law No. 4 of 2013 concerning the Abu Dhabi Global Market (“ADGM Law”).
Our Business Consultancy Services
Type of Business Setup in Dubai
Mainland Company Formation
Free Zone Company Formation
Offshore Company Formation
Frequently Asked Questions – Regulated License
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.
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.
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.
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:
- STEP 1 – Submission of application form.
- STEP 2 – Provide necessary information about your company and provide copies of relevant documents when requested by the DIFC Authority.
- 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.
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.
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.
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 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.
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:
- Providing information about financial services or products offered by its head office or a Group member outside the DIFC;
- Engaging in Financial Promotions (such as holding events and seminars) relating to the financial products or financial services referred to above; and
- 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
Activities not permitted
Arranging deals
Advising
Promoting a third–party products
Marketing financial products of a related party located in DIFC
Compliance Requirement
- Officers required:
- A resident authorized representative
- Annual AML return filing
Requirements
- A detailed business plan
- Corporate documents attested from UAE Embassy in Country of origin
- Passport copy of authorized representative (authorized representative must be a resident)
- UBO passport copy
- Financial Regulatory Authority certificate of the parent
General Procedure
- Submission of intent letter to DIFC
- Initial application with DIFC
- Submission of Business plan to DFSA
- Initial Application with DFSA
- Arranging Meeting with DFSA for presentation
- Obtaining in Principal approval from DFSA
- Identifying office space
- Completion of registration of companies with Registrar for companies (Office set-up, Visa, bank account opening etc.)
- DFSA inspections
- Authorization from DFSA
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
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.
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 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.
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 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.