A DIFC Category 4 license authorizes firms to engage in a wide range of financial activities, allowing them to offer versatile services in the financial sector. This category encompasses activities such as arranging deals in investments, advising on financial products, arranging custody, insurance intermediation, insurance management, operating an alternative trading system, providing fund administration, arranging and advising on credit, operating crowdfunding platforms, and providing trust services (excluding acting as a trustee of an express trust). Firms holding a Category 4 license may also choose to operate their business in a Sharia-compliant manner or through an Islamic Window, aligning their operations with Islamic finance principles.
Base Capital Requirement:
US$ 10,000
Specific Requirements:
Operating a Crowdfunding Platform While Holding Client Money: US$ 140,000
Expenditure-Based Capital Requirement: 6/52 of annual operating expenditure (18/52 if holding or controlling Client Money)
Additional capital requirements may be imposed by the DFSA during the application review.
DIFC Category 4 License – Licensing Process
To obtain a DIFC Category 4 license, an applicant must submit an application to the Dubai Financial Services Authority (DFSA). The DFSA will evaluate the merits and suitability of the applicant, as well as the specific category of the license being applied for. This process involves several key steps:
Initial Review: The DFSA will conduct an informal review of a draft Regulatory Business Plan and projected financials. If the initial review is satisfactory, the applicant will be invited to submit a full formal application, which must include a finalized Regulatory Business Plan.
MVG Dubai Office Will Assist You in the Following:
Introduction to the Regulator: Facilitating initial contact and communication with the DFSA to ensure a smooth introduction and understanding of regulatory expectations.
Drafting the Regulatory Business Plan (RBP): Assisting with the creation of a comprehensive RBP, including application forms, business flow processes, and organizational charts.
Financial Model Preparation: Developing a detailed three-year financial model and drafting the ICAAP and IRAP reports to meet regulatory requirements.
Policy and Manual Preparation: Creating essential policies and manuals covering Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interest, and Business Continuity Planning.
Required Forms:
AUT – CORE: This form must be submitted by all applicants applying for a license to carry out one or more financial services in or from the DIFC. It includes detailed information about the applicant, its activities, prospective clients, and controllers.
AUT – IND: To be submitted by individuals holding mandatory functions such as directors, the Senior Executive Officer (SEO), Finance Officer (FO), Compliance Officer (CO), and Money Laundering Reporting Officer (MLRO).
AUT – AMS: Required for applicants intending to conduct financial services related to arranging credit or deals in investments.
Submission of Regulatory Application:
MVG Dubai Office will handle the drafting and submission of the regulatory application, including all required policies and the appointment of SEO, FO, MLRO, RO, and CO.
Provision of Full-Time Functions:
SEO: Senior Executive Officer
FO: Finance Officer
RO: Risk Officer
MLRO: Money Laundering Reporting Officer
CO: Compliance Officer
Assistance in fulfilling mandatory roles, including:
Additional Services:
Office Lease: Assistance in securing suitable office space for operations.
Introduction to UAE Banks: Facilitating the opening of a bank account in the UAE to support financial activities.
Issuance of Financial Services License: Coordinating with the DFSA throughout the review process, including managing interviews with nominated authorized individuals.
Once the DFSA is satisfied with the application, it will issue an In-Principle approval, which will include several conditions that must be met before the final license is granted. These conditions typically include:
Incorporation or Registration: Completing the incorporation or registration of the entity with the DIFC Registrar of Companies.
Local Bank Account: Opening a local bank account and providing proof of remittance of capital to the DFSA.
Office Space: Securing and providing evidence of the office space from which the financial activities will be conducted.
Upon satisfying these conditions, the DFSA will issue the formal license.
Why Choose MVG Dubai Office?
MVG Dubai Office offers extensive experience and expertise in navigating the DIFC licensing process. Our dedicated team provides comprehensive support throughout the application process, ensuring a smooth and efficient experience. We deliver tailored solutions and strategic insights that help clients thrive in the DIFC's dynamic financial environment. Partner with MVG Dubai Office to benefit from our unparalleled service and deep understanding of the regulatory landscape. Our commitment to excellence and client success makes us the ideal partner for obtaining and maintaining your DIFC Category 4 license.