The ITL Programme in DIFC caters to entities aiming to introduce cutting-edge financial products and services, such as payment solutions, wealth management tools, tokenized payment services, and biometric-enabled financial offerings. Explore the steps involved in obtaining an ITL license in Dubai to test your innovative product or service.
Innovation serves as a crucial pillar of the UAE’s economic progress, firmly establishing its global standing as a leading innovative nation. This peculiarity attracts businesses prioritizing innovation to choose the UAE as their operational hub. The Dubai International Financial Centre (DIFC) further enhances this allure by offering businesses with an Innovation License a distinctive advantage in shaping the future of finance and ensuring their success.
The support ecosystem provided by DIFC, including resources like the FinTech Hive and the Regulatory Sandbox, empowers innovative ventures to have lasting results. To simplify the process of obtaining an Innovation License, DIFC has introduced the Innovation Testing License (ITL) Programme. This Regulatory Sandbox offers a structured environment for startups to test their pioneering products and services before securing a permanent license. Unlike bypassing regulations, the ITL serves as an entry point for innovative firms, particularly startups, to validate their offerings with genuine customer feedback.
Let’s explore the sequential steps involved in obtaining the innovation license.
Application Process for ITL License in DIFC
The journey begins with a simple yet crucial step – submitting a Pre-application Form. This document serves as your introduction to the DFSA, outlining the innovative aspects of your business model. The DFSA reviews these pre-applications diligently, selecting those that meet the ITL eligibility criteria. If your pre-application is successful, you’ll receive an invitation to proceed with the ITL application. At this stage, you’ll need to complete and submit the ITL Application Form, accompanied by a comprehensive Regulatory Testing Plan. This plan serves as your roadmap, detailing the specific aspects of your business model, products, or services that will undergo technology-related testing during the ITL period.
Testing Period of ITL License in DIFC
Now, it’s time to embark on a transformative journey during the 12-month testing period. Collaborating closely with the DFSA, you’ll have the opportunity to test your business model and regulatory preparedness. This testing involves a temporary relaxation of selected regulatory requirements, allowing you to innovate with agility. Throughout this period, diligent documentation, and communication with the DFSA are paramount to ensure a smooth and productive testing experience.
Final Assessment and Exit Options from ITL
As the 12-month testing period draws to a close, the DFSA conducts a final assessment of your performance. If the testing is successful, you can apply to remove restrictions on your license and exit the ITL Program, ready to unleash your innovation upon the market. However, in cases where testing falls short of expectations, you still have options. You can apply to withdraw your license, regroup, and reassess your strategy for future endeavors.
In-Principle ITL
Upon a successful application, the DFSA grants you an In-Principle ITL, subject to the resolution of certain matters to the DFSA’s satisfaction. With this initial approval in hand, you can proceed with confidence. Obtain your DIFC business license, set up a bank account, and fulfill operational requirements to lay the foundation for your innovative venture.
MS as your partner in Innovation License Setup at DIFC
The DIFC Innovation License has played a pivotal role in nurturing the region’s largest innovation ecosystem, now encompassing more than 850 firms. This achievement stems from providing firms with a significantly discounted license and a flexible platform within the region’s top marketplace. At this point, establishing your business in DIFC and obtaining an innovation license can offer enduring benefits. MS offers comprehensive services for ITL applications in DIFC, covering initial consulting, authorization assistance, and support in preparing legal documentation for your seamless journey in DIFC.