In the UAE the financial regulation is based on the criterion of territoriality and it prohibits from carrying out any financial activity, without being licensed. A licence is required for activities undertaken directly or indirectly within the UAE or into the regardless of the status of the client. With the recent economic development, there is a growing requirement for a financial centre to serve the rapidly expanding needs of institutions and governments in the region. The DIFC concept has therefore evolved as a means of addressing these issues.
In order to obtain a licence to practice the activity of financial consultation and financial analysis the following most important conditions must be met such as at least 51% of its share capital is held by UAE nationals, the company has qualified technical and administrative personnel and a competent internal control and regular audit system. Benefits of setting up in the DIFC include zero percent tax rate on income and profits, access to the UAE’s wide network of double taxation treaties and freedom to repatriate capital and profits without restrictions.
The DFSA is a risk-based regulator. One of its primary aims is to identify, assess, and mitigate any risk to DIFC. Stringent criteria are applied by the DFSA to determine who may be granted a licence, authorisation or registration to conduct financial or professional services, or to carry out licensed functions in, or from, DIFC. Applicants must provide detailed submissions to the DFSA on a wide range of matters. The DFSA assesses operating standards relating to competence, financial soundness and integrity. It considers the extent to which a firm, and any of its group entities, may be subject to external regulation, as well as the extent to which those regulators share the DFSA’s high standards of regulation. Consideration is given to the applicant’s fitness and suitability to hold a licence, professional or industry qualifications, suitability of the applicant’s controllers and whether an applicant has sufficient resources. Authorised Firms can be divided into five categories of licence, each with its own rules and capital requirements, Categories 1 up to 5.
Dubai is a first class choice for a financial institution of your calibre, and in particular we recommend that you set up in the DIFC, something which we can undertake given our presence in Dubai. For more information please feel free to contact us. Our team will be eager to assist you in your decision.
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