DIFC introduces new business licensing categories, fees

Business Bureau, Gulf Today

Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, is continuing to prioritise the ease of doing business with the introduction of new licensing categories and fees designed to make establishing businesses within the Centre easier and more affordable.

Four new licensing categories were introduced as part of the new Operating Law and Regulations, including Short-term and Restricted Licences, Commercial Permissions and Dual Licences. Each of the new categories come with reduced licence fees and increased flexibility, allowing more firms to conduct business from the Centre.

The new enhancements to the licensing regime are in response to market needs and exemplify DIFC’s commitment to providing a nurturing business environment balanced with appropriate levels of protection, in accordance with international best practice.

Khalid Al Zarouni, Senior Vice President & Registrar of Companies at DIFC Authority, said: “As a major financial hub, we continue to develop and adapt our business ecosystem with world-class legislative framework to make DIFC a more attractive place for business. The new licences and fees introduced under DIFC’s Operating Law and Regulations are a first of its kind in the region and will enable DIFC businesses to grow, whilst also encouraging a more diversified portfolio of businesses to establish in the financial centre. Not only do these changes strengthen our position in international markets, but they also support Dubai’s vision to be the number one city for ease of doing business by 2021.»

Under the new Short-Term licensing category, retail businesses and other non-financials will now be able to operate their businesses from DIFC with flexible rates over shorter timeframes. This includes a competitively priced registration fee of US$100 and a licence fee ranging from US$300 to US$5,100 depending on the duration.

In addition, Restricted Licences have been introduced to firms interested in developing or testing new or innovative products and services in the DIFC. Entities obtaining this licence will benefit from a reduced registration fee of US$100, and with annual licence fees ranging from US$1,000 to US$4,000, allowing more flexibility for innovation, testing and access to the DIFC ecosystem which includes incubator and accelerator programmes.

The Commercial Permissions category will allow both DIFC and non-DIFC entities such as event companies, retail outlets, training providers or educational services to conduct their main business activities within the DIFC at competitive rates. Fees for Commercial Permissions range from US$100 to US$2,000, depending on the nature of activity and duration.

Finally, Dual Licensing also enables DED licensed non-financial and non-retail firms with an affiliate in the DIFC to operate from the centre. This includes law firms, audit firms, consultancy firms, family businesses, holding companies and corporate service providers, who will benefit from an annual fee of US$1,000.

DIFC is firmly committed to being the most business-friendly, Common Law jurisdiction in the MEASA region. The Centre’s vision is to drive the future of finance and today it offers one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programmes, and funding for growth-stage start-ups.

Meanwhile, Dubai International Financial Centre (DIFC) Authority, the entity responsible for the operations and management of the leading financial hub for the Middle East, Africa and South Asia (MEASA) region with a wealth and asset management market of $424 billion, has strengthened its leadership team to drive its ongoing journey towards becoming a next generation financial centre.