Guide to the CAT 3C DIFC License 

The IFC stands among the globe’s top ten onshore financial centres, providing a secure and efficient platform for businesses and financial institutions to engage with the emerging markets of the region. With the high quality and independence of the DIFC’s regulator, a robust common law framework, outstanding infrastructure, and tax advantages, it serves as an ideal hub to capitalize on the escalating demand for financial and business services in the MENASA region.

Wealth & Asset Management

The DIFC stands out as the favored destination for Wealth and Asset Management firms in the MEASA Region.

These firms enjoy the advantages of The Centre’s sophisticated international ecosystem, including:

1. A world-class legal and regulatory framework.
2. A collaborative approach fostering partnerships between clients, regulators, and authorities.
3. A substantial industry size exceeding USD 450 billion in Wealth and Asset Management within the DIFC.
4. A noteworthy USD 165 billion in Assets Under Management (AUM) is managed within the DIFC.
5. A current count of over 330+ companies engaged in Wealth and Asset Management operations.

Wealth Management

The Centre is a prime hub for regional wealth management in the rapidly growing MEASA region, known for accelerated wealth accumulation. Key areas of interest include investment and portfolio management, estate planning, Sharia-compliant wealth management, and real estate and financial advisory. DIFC provides diverse market entry options and regulated licenses. A representative office supports marketing, information provision, and referrals, while a category four license enables asset raising and client relationship management. Additionally, a category three license allows comprehensive portfolio management, making DIFC a strategic base for navigating the dynamic MEASA landscape.

Asset Management

The Centre is an ideal hub for diverse wealth and asset management companies, supporting the development and management of public, private, Sharia-compliant, and qualified funds. DIFC offers regulated licenses, including representative offices for marketing services, information provision, and promotions. A category four license allows asset raising and full client relationship management, while a category three license permits comprehensive portfolio management, making DIFC a strategic choice for varied financial enterprises.

Fund Management
The MEASA region’s expanding wealth demands specialized fund management services. Institutions and high-net-worth individuals seek regional experts for intricate investment needs. DIFC’s legislative framework ensures a secure environment, attracting local, regional, and global players to domicile, manage, and distribute funds. DIFC stands out as the largest fund management jurisdiction in the region, setting the pace with its supportive regulatory regime.

Private Equity

Companies in the MEASA region seek private capital, including international sources, to fuel their growth. Private equity is increasingly attractive to family firms and conglomerates, providing capital and management expertise as they grow in size and complexity. Fragmented industries are ripe for consolidation through private equity. Governments explore private-public partnerships, offering additional opportunities. The growing appetite from institutions and high-net-worth individuals for MEASA-focused private equity creates an investor base for regional funds. DIFC, centrally located for regional deal-making, provides an ideal platform with tailored fund structures and licensing options, establishing a unique regional hub for launching, distributing, managing, and domiciling various private equity funds.   

Hedge Funds

Positioned as a crossroads between the East and West, Dubai serves as a pivotal hub for global trade and investment. The strategic location of DIFC provides hedge funds with an optimal gateway to tap into the high-growth emerging markets of the Middle East, Asia, and Africa. A significant majority of hedge funds established in DIFC, approximately two-thirds, hail from the United States and the United Kingdom, boasting the inclusion of two among the world’s ten largest hedge funds.

Venture Capital Firms
DIFC offers an optimal setting for venture capitalists to establish a foothold in Dubai and invest in innovative technologies and enterprises. Dubai boasts a significant share, one-third, of all MENA investors. Various funding sources, including growth-stage funding, angel investors, and the Dubai Future District Fund, contribute to the vibrant ecosystem. Launched in 2020, the AED 1 billion fund targets attracting leading global and regional capital to expedite the growth of the digital economy.

Establishing a financial entity in DIFC is straightforward, involving a streamlined process of five sequential steps:

1. Submit your interest.
2. Apply for DFSA Authorisation:
   
   
3. Furnish the DFSA with a regulatory business plan.
4. Lodge your application with the DFSA.
5. The DFSA will conduct a thorough final review and provide a recommendation. Upon approval, the DFSA will issue an “in-principle” letter, typically valid for three months.

• Registered Address: Select and officially register the location within DIFC where your entity will operate.
• Register with DIFC: Fulfill the prerequisites for registering the entity in DIFC to acquire both the Certificate and the License.
• Authorization by DFSA: Upon satisfying all DFSA prerequisites, you will be granted DFSA Authorization.

Costs for setting up in DIFC – Dubai International financial centre

The DFSA oversees the assessment and approval of financial services applications, with costs varying based on the specific activities sought, placing the applicant into one of five categories.

DFSA fees typically consist of two elements: 1) an application processing fee and 2) an annual licensing fee.

1) Application fee – starting from $ 5,000.

2) Annual Licensing – starting from $ 5,000.

Registrar of Companies (DIFC ROC)

The DIFC ROC facilitates the establishment of the legal framework for DIFC Regulated Firms. Shareholders may be individuals or corporations, and various options exist, including ‘Private Company Limited by Shares’ and ‘Limited Liability Partnerships.’ Specifically, for the Private Company Limited by Shares structure, the associated setup costs encompass:

Incorporation Application for a Private Company Limited by Shares: $ 8,000
Commercial License Fees: $ 12,000

Data Protection

The data protection notification is an integral component of the new entity registration process in the DIFC, with associated costs outlined below:

Registration: US$ 1,250

Annual renewal: US$ 500

WHAT APPOINTMENTS ARE MANDATORY FOR A CATEGORY 3C-AUTHORIZED FIRM IN DIFC?

Directors (minimum 2, preferably 3-4) – eligible for outsourcing (NEDs).

Senior Executive Officer (SEO) – In-house, must be a UAE resident (can also serve as a director).

Risk Officer (RO) – eligible for outsourcing.

Finance Officer (FO) – eligible for outsourcing (can also be an Executive Director/Senior Manager).

Money Laundering Reporting Officer (MLRO) – eligible for outsourcing, must be a UAE resident (can also be a Compliance Officer).

Compliance Officer (CO) – eligible for outsourcing, must be a UAE resident (can also be an MLRO)

Our Services – WHY MS?

We offer end-to-end solutions for obtaining a Category 3C DIFC License. Whether you need fintech consulting, support during the authorization process, or help preparing legal documentation, MS guides you through the intricacies of the DFSA Rulebook, ensuring your application is thorough, complete, and compliant.

Our range of services includes:

• Evaluating the business model and providing advice on the relevant regulatory framework.

• Crafting the Regulatory Business Plan and creating detailed financial projections.

• Developing all necessary policies, processes, and manuals.

• Offering Outsourced Compliance Officer and Outsourced Finance Officer services.

• Finalizing the legal structure, including setting up a holding company and customizing Memorandums; and

• Completing the leased space arrangements, assisting with bank account opening, and securing Financial Services Permissions.