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Dubai Financial Services Authority

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Requirements for Obtaining a License under the Dubai Financial Services Authority (DFSA)

To conduct financial services within the Dubai International Financial Centre (DIFC), entities must obtain a license from the Dubai Financial Services Authority (DFSA). Below is an overview of the application fees, processing time, and steps involved in the licensing process.

Application Fees

General Fees

The fee for a DFSA license depends on the type of financial services the applicant intends to provide. The following are examples of application fees:

  • Accepting Deposits or Providing Credit: $70,000
  • Dealing in Investments as Principal (except as a matched principal): $40,000
  • Dealing in Investments as a matched principal, agent, or managing assets: $25,000
  • Arranging Credit or Custody, Advising on Financial Products, or Insurance Intermediation: $15,000
  • Operating a Representative Office: $4,000

Additional Fees

  • For applicants with complex corporate structures or other factors (e.g., multiple jurisdictions or requiring consolidated supervision), an additional fee equal to 100% of the base fee applies.
  • Operating an Exchange or Clearing House: $150,000 per activity; combined fee for both: $300,000.
  • Operating an Alternative Trading System (ATS) trading Security Tokens: $150,000; for other ATS activities: $65,000.
  • Endorsements to act as a Trade Repository, serve Retail Clients, or use a Fund Platform: $15,000–$20,000.

Processing Time

The DFSA typically processes license applications within 120 days, although the actual time depends on the application’s complexity, the responsiveness of the applicant, and the regulatory review process.

  • Successful applications result in an in-principle decision letter, allowing the applicant to complete the DIFCA Registrar of Companies process and other requirements before receiving the license.

Key Steps in the Application Process

  1. Prepare Senior Management and Mandatory Positions
  • Identify individuals for senior management and key roles, and complete individual application forms for these positions.
  1. Develop a Regulatory Business Plan
  • Include details on proposed activities, 3-year financial projections, human resources, control systems, IT infrastructure, and compliance measures.
  • Share the plan with the DFSA Authorisation Enquiries Team for feedback before submission.
  1. Understand DFSA Rules and Requirements
  • Familiarize yourself with the DFSA Rulebook.
  • Prepare a compliance manual, compliance monitoring program, and risk management policies demonstrating how the firm will meet regulatory obligations.
  1. Determine Minimum Capital Requirements
  • Calculate the required regulatory capital and include it in your 3-year financial projections.
  1. Complete and Submit Application Forms
  • Provide all relevant and accurate information. Openness and transparency are essential. Disclosing any issues will not necessarily harm your application, but withholding or providing false information will.
  • Nominate a contact person to manage the application process and assist with DFSA inquiries.
  1. Initiate the DIFCA Registrar of Companies Process
  • Begin the DIFCA registration process concurrently with the DFSA application to streamline licensing and registration.

Important Notes

  • Meeting regulatory capital requirements is mandatory at all times.
  • Compliance with DFSA rules and maintaining adequate operational controls is essential for license approval.
  • Deliberate omissions or false disclosures may result in application rejection.

By adhering to the outlined requirements and submitting a thorough, well-prepared application, entities can successfully obtain a DFSA license to operate within the DIFC. This process ensures a transparent and robust regulatory framework for financial services.