How Can I Start a Fintech Company in Dubai?

Dubai is becoming a hub of technology and financial solutions, which makes it a perfect place for Launching a fintech startup in Dubai. This place has everything that you need to make your fintech business successful. This is not the end; the city additionally comes with a high chance to make the fintech business a big success. According to the stats, the fintech industry in the Middle East grew at a CAGR rate of 30 percent last year. Furthermore, it is estimated that the United Arab Emirates will account for around $2 billion in investment in this space.   After knowing these stats and predictions, we are sure that most of you might be interested in starting your Fintech company in Dubai. Apart from these numbers, you can benefit significantly after opening your Fintech company. However, we will discuss these benefits later in this article. If you are desperate to start your Financial technology firm in Dubai, then you are at the right place. Here, you will get an in-depth guide that will help you to begin your fintech company in Dubai. Furthermore, we will discuss the benefits that you can obtain from your Fintech company in Dubai.  

Benefits of Starting a Fintech Company in Dubai

Dubai comes with the benefits of providing the owner of the Financial technology firm Dubai. It means that you can get uncountable benefits after starting your Fintech company in Dubai. Here are the top benefits that you can get from Launching a fintech startup in Dubai:  

1. Supportive regulatory environment

The Dubai Financial Services Authority (DFSA) is a regulator with forward-thinking that is supportive towards the innovation of the fintech industry. The DFSA has already taken a wide range of initiatives in order to help the startups of the fintech industry, like the Innovation Testing License (ITL). The license has the potential to allow you to test your products and services in a supportive environment.  

2. Tax benefits

Tax benefits are another profitable benefit that you can get with the help of Fintech licensing in Dubai. The owners of fintech companies are allowed to push their profits due to the fact that the emirate comes with a popular competitive tax regime for business conducted in this city.   The owners of businesses do not need to pay any type of taxes. However, companies whose earnings exceed AED 375,000*  in annual taxable profits have to pay taxes of 9 percent. But you do not have to pay this tax if your earnings do not exceed AED375,000*.  

3. Complete ownership

Foreign investors are allowed to own complete or 100 percent fintech companies in Dubai that provide you with full control of your business. Furthermore, there are numerous economic free zones in Dubai where you will get the potential to enjoy 100 percent on your Financial technology firm. In addition to this, business owners of fintech companies additionally face 0 or no restrictions on foreign exchange or capital and profit repatriation. The list of benefits you can get by opening your fintech company in Dubai continues. Apart from this, you can also get other benefits from Launching a fintech startup in Dubai.

Steps that you should follow to start a fintech company in Dubai

Apart from getting Fintech licensing in Dubai, you have to follow other steps to start your Fintech company in Dubai. Here are some steps that you must follow:

1. Select a business structure

In order to start a Financial technology firm in Dubai, you should initially select a suitable business structure for your Fintech business. Remember, there are three main business structures in Dubai: a Limited Liability Company (LLC), a Free Zone Company, or a branch of a foreign company. Each structure has its own benefits and features. We recommend you choose it based on your requirements with the help of Flying Colour Business Setup.  

2. Select a business jurisdiction. 

Dubai also comes with three different economic zones. The first is the free zone, mainland and the other is offshore. Again, all zones have their own benefits and features. You must choose a suitable business jurisdiction based on your needs for doing business.   

3. Business activities

After choosing a business jurisdiction, you should select the business activities you want to conduct in your Fintech company. Remember, a company may only conduct business activities as they selected for their trade license.  

4. Register a trade name.

After deciding on business activities, you must choose or submit a trade or company name for your Financial technology firm in Dubai to the authorities. Dubai has strict rules for name selection, so you have to choose the name appropriately. You should ignore any offensive or blasphemous element and ensure your name is unique.   

5. Get initial approvals 

You must choose your company name and get prior approval from the Department of Economic Development (DED) or the Free Zone Authority. This step involves gathering and submitting important documents such as passports, visas, and etc.  

6. Get regulatory approval

In Dubai, fintech businesses are challenged by specific guidelines. You ought to get approvals from the applicable government, like the Dubai Financial Services Authority (DFSA) or the Central Bank of the UAE (CBUAE). You ought to apply for the innovation trying out license or ITL so as to check your fintech answers to get the entire fintech licensing in Dubai.  

7. Apply for a trade license.

After obtaining regulatory approval, you should submit your application for a trade license to the DED or the respective Free Zone authority. At this stage, you will need to submit some crucial details about your business, its shareholders, and proof of address and identification.   

8. Apply for a visa.

After obtaining Fintech licensing in Dubai, you will need to apply for a visa. Here, you will also need to submit your application along with the required documents to the authorities of the visa.   

9. Open a corporate bank account.

At last, you are required to open your corporate account in any bank in Dubai for your Financial technology firm Dubai. After that, you will get the ability for Launching a fintech startup in Dubai.

How Flying Colour can help you to start your Fintech company in Dubai?

Flying Colour is a service provider for business setup. We can help you to set up your fintech business in a more efficient manner. Furthermore, we can provide you with valuable tips that can help you to make your fintech business more successful. To learn more about how can I start a fintech company in Dubai, book a free consultation with one of the Flyingcolour team advisors, Simply call  +97144542366 or send WhatsApp messages to +971554413566. you can also drop an email to info(at)flyingcolour(dot)com. *Please note that this article was published on 27/12/2023 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.