How to Start a Fintech Company in DIFC?

Start a Fintech Company in DIFC

Whenever you plan to start your Fintech business in Dubai, you should consider the Dubai International Financial Centre (DIFC) as the area is specially developed for financial corporations and offers many advantages.  Here, we will guide you via uncountable opportunities for you at DIFC. We will also explore an in-depth guide to start your FinTech company in this free zone. 

Key trends within the FinTech industry in DIFC

Countless key trends are evolving in the Dubai International Financial Centre (DIFC) for the Fintech industry. Using these trends can help you succeed in the Fintech industry. The following are the top key trends in the DIFC:  

1. Digital Payment

Digital Payment is the first trend you can use to enjoy profitability in the DIFC. The use of Digital Payment portals is immensely increasing. The increasing availability of mobile payment apps and the growing popularity of eCommerce have significantly contributed to the boosting demand for digital payments.   

2. InsurTech 

You can also start your Fintech company as an InsurTech company. Are you wondering what InsurTech does mean? If yes, you may feel happy knowing that InsurTech is the use of technology to boost the delivery of insurance services. This market is also growing because insurers often find ways to look at customers and give more personalized services.   

3. Blockchain 

Blockchain is another technology that has revolutionized the complete financial industry not only in Dubai but also in the whole world. However, Dubai is among the leading cities in terms of the adoption of blockchain technology. Many Fintech companies are developing new financial products and services with the help of blockchain technology in the Emirate. Therefore, we recommend you leverage the high demand for blockchain technology to enjoy profitability in your Fintech company in DIFC.  

4. RegTech 

RegTech is another key trend you can use to make your business succeed. Do you want to explore the exact meaning of RegTech? If yes, you should understand that RegTech is an effective use of technology to improve regulatory compliance in the city. Remember, regulatory compliance is a significant area of focus in Dubai or DIFC because the government always looks for ways to create a more efficient and effective regulatory environment for fintech companies like yours.   

Benefits of starting your Fintech business in DIFC

As we have mentioned above, the DIFC is an ideal location to start your Fintech business in Dubai as it provides many benefits if you plan to begin your Fintech Company in DIFC.  Therefore, let us discuss the top advantages you can enjoy by starting your Fintech business in DIFC:

• When you start your Fintech business in DIFC, you may enjoy no or 0 percent Corporate Tax. 
• If you are a foreigner, you can also enjoy complete or 100% ownership of your Fintech company in DIFC. 
• As DIFC is located in Dubai, you can get access to the tech-savvy population with the high number of smartphones that drive the adoption of financial services.
• You are not required to understand Dubai’s complex rules and regulations because the DIFC has an international legal system based on English law.
• DFSA or Dubai Financial Services Authority regulates the DIFC and actively promotes innovation and supports the financial industry. It means you will get a supportive environment for starting your Fintech Company. 

Documents needed for beginning your Fintech Company in DIFC

Before getting ready to begin your Fintech Company in DIFC, you should prepare some documents as it is necessary to submit them to the DIFC authority. Below is the list of common documents you need to start your Fintech business in DIFC:  

• Passport copies for each of your shareholders
• Proof of initial approval
• A passport copy and a C.V. for the manager
• A notarized power of attorney 
• A lease agreement highlighting your legal business office address.
• A notarized Memorandum of Association and Articles of Association.
• A certificate of incorporation- if required.
• A sheet of information for each shareholder and manager

What are the steps you must take to start your Fintech business in DIFC?

You can effortlessly set up a Fintech business in the DIFC because the process of setting up this business is straightforward. However, you should have a clear understanding of the complete process of beginning a Fintech business in this Free Zone. Therefore, we have outlined the steps to start your fintech business:

1. Choose your legal form

Initially, you should select a reliable legal form for your Fintech business in the DIFC. LLC, branch office, partnership, and more are some common legal structures you can choose for your Fintech business in DIFC. This step will decide how you will handle all legal and financial matters in the future. Therefore, you should carefully choose a relevant legal form for your Fintech company.   

2. Decide your business activity

After opting for your legal form, you should choose the business activities you want to perform in your Fintech business in DIFC. For this, you must understand what type of business you want to conduct, the product you are selling, and the market environment surrounding your product or service.   

3. Choose your company name

Next, you should select an appropriate company name for your Fintech Company in DIFC adhering to the naming guidelines.  You must avoid offensive elements or references to Allah and Islam in your company name. In addition, you should use your full name if you intend to use your own name. Plus, you should submit three potential and unique names to the registry office.   

4. Submit the required documents and application

At this point, you should submit the required documents and application to the relevant authority. After submitting these documents and applications, you will get the initial approval for your Fintech Business.   

5. Open a corporate bank account

Next, you need to consult a local bank in Dubai to initiate a corporate bank account for your Fintech company. This bank account will help you handle your company’s financial transactions.   

6. Receive final approval 

After a few weeks, you will receive your final approval and certificate of incorporation. After obtaining the final approval, you can legally start your Fintech company in DIFC.   

How can Flyingcolour Business Setup help you?

You can enjoy many benefits by beginning your Fintech Company in DIFC. However, you must follow several steps to initiate your Fintech Organization or Company in this Free Zone. Flyingcolour Business Setup can guide you to these steps effectively. Our experts can clear all your confusion about DIFC or FinTech Company.  To learn more about the Start a Fintech Company in DIFC, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  03/07/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.