The Dubai International Financial Centre (DIFC) has emerged as a leading hub for technology and innovation in the region, attracting startups and established businesses alike. With a 20-year track record of facilitating trade and investment, the DIFC Innovation License acts as a platform for technology firms spanning various sectors, providing access to the latest advancements in technology across the MEASA region. Offering a subsidized fee structure, the DIFC Innovation License is a Commercial License accessible to technology and innovation firms of all stages, fostering growth opportunities. It specifically targets firms looking to pioneer or experiment with new and innovative products.

If you’re considering establishing your tech venture in the DIFC, understanding the license application process is crucial. In this blog, we’ll walk you through the stages and requirements for obtaining a DIFC Tech Innovation License.

Stages of obtaining DIFC Tech Innovation License in Dubai

If your tech activity falls under the list of activities allowed for the DIFC Tech Innovation License, you may initiate the application process to obtain an In-Principal Approval. Upon receiving this approval, you can proceed with registering your technology entity within the DIFC.

There are certain stages for applying for the In-Principle Approval.

Stage I – Submit for In-Principal Approval

Step 1:

Initial Application:  The journey begins with filling out and submitting your online Initial Approval application, which will be sent via email. Make sure to select the option for Digital Passport Verification to advance the process.

Step 2:

Review Process Your application: In this step, you will undergo a thorough review for Initial Approval by the authorities.

Step 3:

In-Principal Approval: Upon successful review, you’ll obtain the In-Principal Approval, marking an important milestone in the process.

Stage II: Register the Legal Entity

Step 1:

Document Submission: Submit the necessary documents and complete the required payments. Payment methods include credit/debit card, bank transfer, or cash.

Step 2:

 Incorporation Complete: Once the submission is processed, the incorporation of your legal entity will be completed. You’ll receive all corporate documents automatically via email.

Step 3:

Annual Renewal: Ensure to renew your license annually as per the terms, depending on your chosen payment method.

Now let’s look at the specific information that should be included in the application.

Application Form – Key Information Required

1. Business Activities: Provide detailed information about your technology and innovation, including a value proposition, revenue model, and product details. If setting up a Tech R&D entity, a signed undertaking letter confirming no financial activities will be conducted is necessary.
2. Entity Background: Furnish a summary of the entity being established, ownership structure, and biographies of shareholders/directors/UBOs.
3. Source of Income: Detail the funding sources for the DIFC entity, financial background of shareholders, and how the wealth was accumulated. Supporting documents such as bank statements or investor agreements may be required.
4. Documents Required: Ensure to provide necessary documents such as passport copies of shareholders/directors/UBOs, bank statements, audited financial statements (if applicable), and an attested Certificate of Incorporation if the entity will be owned by a parent entity.

If you get an In-Principle Approval after the application, the next step is to register your entity in the DIFC.

Registering your Entity in the DIFC – Guidelines

Once you receive In-Principle Approval, follow these steps to complete the registration process:

1. Log in to the Client Portal to fill out the application for Registration with DIFC.
2. Submit certified passport copies of Shareholders/Directors & Company Secretary.
3. Provide a Board Resolution for incorporation if the entity has a shareholder body corporate.
4. Apply and pay for Co-working Space (Flexible desk) if required.
5. Submit your final application on the DIFC portal and complete the DocuSign of the Articles sent by email.

Choose MS for DIFC Tech Innovation Company Formation
Partnering with MS at DIFC simplifies the process of obtaining an innovation license. With expertise in local regulations and connections within DIFC, we accelerate the licensing procedure, allowing businesses to focus on innovation. MS provides essential assistance to tech startups aiming for the DIFC Innovation License, guiding them through licensing requirements with personalized advisory services. We foster collaboration and networking opportunities within the startup community, contributing to the success of ambitious entrepreneurs in Dubai’s tech industry.