Fintech Consulting In Dubai

Fintech Consulting and; Licensing Support in Dubai

Dubai has everything a business needs, from a smart landscape to easy and accessible market policies, but it also pertains to stringent laws and regulations for the licensing and registration process. Enterslice licensing consultancy for Dubai will help you procure a license and be a free zone fintech company. The vibrant and dynamic fintech ecosystem of Dubai is very well-positioned, and our team at Enterslice will support you in piercing this ecosystem and making your mark in the Dubai market.

Concept of fintech & fintech licensing?

In recent times, the traditional market players have been challenged by the industries arising out of the combination of finance with technology, popularly known as fintech. Today, any technologically enabled financial innovation that might produce new business models, applications, processes, or products that can leave an effect on the financial market is known as a fintech business model. Due to stringent consumer protection rules, these fintech business models can't be part of the public domain without obtaining authorization from the regulatory authorities.

This authorization is generally in the form of licensing, which gives the right businesses innovative fintech models to introduce in the public domain. Each nation has separate policies regarding fintech licensing, and an entity willing to obtain the same needs to register them according to the local laws. These licensed fintech entities rely upon electronic channels for their distribution, making cross-border interactions and outsourcing of products easy, converting the global market into a unified marketplace.

With Enterslice, Embrace Your Journey as a Fintech Licensed Company By

Preparation

With Enterslice, be prepared to procure a fintech license without challenges.

Deliberation

We will strategize and discuss your business plans to seek out your quality areas, which could highlight your license application.

Conviction

If you need a consultant who holds strong beliefs and trust in your business model, then Enterslice could be your go-to consultant. Our team, with strong conviction, leads the journey of fintech licensing.

Enterslice Fintech Licensing Services Making Your Business

Projected

With the help of Enterslice, make a sustainable plan, calculated effort, and value proposition that could help in projecting your business the right way.

Reasonable

Enterslice doesn’t believe in the policy of exaggerating and making worldly plans for its clients, we believe in a reasonable approach and follow compliance to compliance formula for fintech licensing in Dubai.

Practical

At Enterslice, our belief is to actually do something rather than just rambling on random ideas. We make sensible and working plans to make license claims and have a strong foot in front of regulatory authorities.

Feasible

It will be our responsibility to make your company technologically enabled by making your existing operating model sound enough to fill the gaps in existing technology.

Challenges for Obtaining a Fintech License in Dubai

1. Risk Of Cybersecurity, Data Privacy, Data Protection Threat

The flexibility of the Dubai marketplace is more like a bane in disguise, meaning the flexibility and easy-to-enter market approach make the market easy to access, which also leads to the entry of such players in the market whose motivation is not making profits and doing business but data theft and cybercrimes.

2. Disruptive Technology Usage

The entry of fintech has revolutionized the world of financial services. The free zone market of Dubai welcomes industries dealing with virtual assets; before VARA in 2023, the technology usage was disruptive, which had many loose ends, and it was time-consuming to regulate asset management, including crypto and other virtual currencies.

3. Competitive Market Place-

Dubai is a very welcoming marketplace and provides in-hand facilities and infrastructure to the parties investing and establishing their business there. This has resulted in the entry of foreign startups and even certain big giants to establish their fintech industries in Dubai. This high-rising competition is hard to sustain for players new to the concept of fintech and virtual asset management.

4. Base Capital Requirements-

Base capital is a basic criterion for obtaining fintech licensing in Dubai, which is quite high for newly formed startups. It is at times impossible for startups to do justice with their funding in a competitive marketplace like Dubai, resulting in poor decision-making and, ultimately, degradation of business.

5. Cultural Impediment-

Right from naming the organization to establishing a business ethically in nature, there are certain boundaries that the government has set for the entities interested in doing their business there. The ethnicity of Dubai is Islam-dominant, and the moral values and reflection of the culture are reflected in their concept of building their economy. At times, the industries belonging to nations running on the concept of cutthroat modernization find it difficult to make their place or survive in the Dubai marketplace.

6. Involvement In Decision Making

In all the aforementioned licenses, one common thing is the presence of at least one member on the board of directors or board of members who is a native of UAE. Although the DFSA regulations mention the policy of no interference from the end of regulators, the presence of a native on the board involves the notion of checks and balances that the authority imposes upon the industries.

Enterslice Licensing Services

Documentation Assistance- Our fintech experts offer easy and hassle-free Paper works guidance with checklists along with updated formats from time to time.

Compliance Support- establishing a cross-border fintech industry involves multiple compliances, which, when not followed in a proper pattern, cause delays in the licensing process. Our legal team will help you in systematic compliance formulation along with time-to-time compliance support as per the changes in the regulation.

Expert Guidance- We customize fintech strategies as per your company's business model. To achieve the same, we assign a dedicated fintech expert who will provide expert guidance and support and help you make the right decisions for your company.

The Rise of Fintech in Dubai

Each nation existing in the world is aware of the potential requirements and need to regulate the services that deal with asset distribution and management, such as the budding world of the fintech industry that deals in the services revolving around transactions involving virtual currencies, cryptocurrencies and digital assets which makes the criteria for licensing very important as finance with technology in itself is a risky combination.

It is important to find the right balance between growth, innovation, and regulation, which is why regulating and shaping up fintech industries is a necessity of time. Licensing is a two-way street. It makes a business authentic and worthy of trust, and industries abiding by the rules and regulations are safeguards in the interest of consumers and the financial system.

A nation like Dubai, with a robust licensing system, ensures an industry thrives and protects a consumer against illicit activities such as money laundering, cyber security threats, and data privacy infringement. Licensing is more like a collaboration between the regulators and the fintech industry stakeholders, which work hand in hand so that the innovation insured with regulatory compliance can bridge with each other.

The changing pace of technology and development resulted in the banks of Dubai embracing innovation and technology like fintech and investing in fintech solutions to ensure their efficiency. This increase of fintech in Dubai led the government to ensure the highest level of consumer protection and financial stability, and new rules, regulations, and initiatives were established for fintech licensing.

How Enterslice Will Help You To Be Licenced Fintech Industry Holder In Dubai-

1. VARA Licensing Assistance

• Enterslice will assist you in submitting an initial disclosure questionnaire (IDQ) in a proper format. Our experts specialize in understanding the dynamics of free zones and the authorities maintaining these free zones.
• We will help you with the Paper works of the licensing process and review of your application.
• Our team of virtual asset service providers will help you with VARA guidance upon the receipt of initial approval. We will help you in assisting with meetings and approvals with the authority.

2. License Category 1, 2, 3A, B, C, D, 4&5 Assistance

Enterslice is a consultancy firm with expertise in DFSA regulations. Our team of legal and financial professionals will help you with license category selection and obtaining and preparing licenses appropriate for your area of business. Our work is not just limited to building your license infrastructure. We will support you in all your post-license compliances so that the company can function without any legal hurdles.

3. Representative Aid

Our team of lawyers and counsels can represent you with the DIFC authorities. We will walk you through the evaluation process, and any query that you might have, our team will support and aid you in its rectification.

4. Review and Negotiation Aid

The Dubai marketplace could be quite competitive and confusing for the new entrants. Knowing that the terms and conditions specified in the licensing conditions match your business model is very important. Enterslice has a team of strategy managers who will work closely with you and generate ideas to make a viable business model that is foundational enough to fulfil the licensing terms and conditions of DFSA.

5. Innovation Testing License Assistance

The innovation testing license is a regulatory sandbox offered by DFSA. This provides a controlled environment where startups can test innovative products and services. ITL program is a thorough application procedure. Since its inception in 2017, out of 150 applicants, around 65 were accepted. Enterslice Dubai licensing consults will help you walk through the ITL application process. We know the dynamics involved in the procedure for approval and review by DFSA.

6. Fit & Proper Test Assistance

DFSA has strict criteria of fit and proper tests to judge the competency, honesty, and integrity behind the establishment of an organization. Enterslice has a well-established research and development team that reads and researches the basics that the DFSA needs in their fit and proper tests. We will assist you in building your organizations as per the fundamentals needed by the authority right from the initiation.

7. Value Proposition Assessment & Evaluation Support-

It is important for DFSA that an organization identifies and mentions in its licensing application what value addition and benefits to the customer the product of an industry delivers. Enterslice licensing consultancy in Dubai knows about the whereabouts of the Dubai market and can support you in assessing and evaluating your business plan and the target audience which your business plan needs to focus upon.

8. Administrative and Infrastructure Support

One can only obtain a license for setting up an industry in Dubai when they have prior compliances with the administrative setup and infrastructure of their organization; showing the preparation and efforts that an industry can put into its establishment is an important criterion for consideration of license. Enterslice will connect you with people who are like-minded and understand the ideology of your business plan. We will help you in selecting the best administrative hands who will support your organization in achieving greater heights. We will help you find an ideal office space in Dubai from where you can smoothly handle your day-to-day business operations.

9. Compliance and Risk Management Assistance

The regulatory framework of DIFC is flexible but not for licensing. The authorities are very particular about the procedures established by law.

Enterslice's legal team will help you interpret these regulations. We will structure your business using the risk assessment and compliance module of DIFC. Our team will narrow down the loopholes in your business structure and help you rectify them. Along with it, we will create instructions and advisories in a manner that future risks can be assessed in time.

Global Crypto Compliance 2024: Regulations in Every Country

Global Crypto Compliance 2024 provides a comprehensive overview of cryptocurrency regulations across the globe.

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Fintech framework in UAE

The United Arab Emirates is an elective monarchy that is formed by the federation of seven emirates i.e. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. The Federation of UAE, using Article 121 of the UAE constitution, created financial free zones in the emirates, which led to the creation of DIFC (Dubai International Financial Centre) and DFSA (Dubai Financial Services Authority). DIFC authorized the DFSA to make rules and regulations for financial services industries.

An Ecosystem of Fintech in Dubai

Dubai is one of the world's leading markets for fintech. From startups to the big giants of major nations, all are interested in establishing their businesses there. The major contributory factor there is the ease of business as no fintech business other than that is unlawful and immoral is prohibited in Dubai. This open market attracts businesses throughout the world. The fintech industry isn't immune to the threats of security breaches, irregular compliances, varying global regulations, and lack of technological expertise, ultimately resulting in a steep fall.

These challenges can only be resolved by taking the help of an organization that is stable and experienced in dealing with finances as well as technology. DIFC (Dubai International Financial Centre) and DFSA (Dubai Financial Services Authority) are the authorities that deal with fintech in Dubai along with The Dubai Virtual Assets Authority (VARA), which is a part of Dubai World Trade Center Authority (DWTCA) was established in February 2022 and issued Virtual Assets and Related Activities Regulations, 2023 on 7^th February 2023. These regulations were related to the framework governing virtual assets and all the related activities in the UAE.

Benefits Of Establishing Fintech Industry In Dubai

1. Transparent and streamlined regulations

Dubai is one of the finest international hubs for establishing the fintech industry. It provides an easy-to-access business platform, and the DIFC offers a streamlined and transparent setup process, which is efficient and easy to do. The laws and regulations about fintech businesses are very well established and aid confidentiality, data protection, intellectual property protection, and assets security. The legal system formulated by DIFC is exceptional. It is transparent and based on common legal systems, which makes it easy to understand and familiar to the international markets. The legal framework of DIFC supports cross-border activities, making international transactions easy.

2. Ideal business ecosystem

The business ecosystem of Dubai is diverse and provides accessibility to a wide range of businesses, such as finance, insurance, and wealth management, which can foster innovation and collaboration among the entities. Dubai's location provides global trade benefits as it provides a bridge between Dubai and access to markets in the Middle East, Africa, and Asia. In Dubai, Ownership of foreign fintech is permitted up to the range of 100%, which increases the confidence of new fintech entrants to be part of the market.

There is no prominent rule within the employment policies for recruitment, meaning even foreign employees could be employed. The geography is supportive to the businesses, meaning the infrastructure needed for a fintech establishment is easy to assess and manage. Also, the management offices and holding companies are closer to the assets the fintechs own and manage, making it very well positioned to harness the potential of emerging markets.

3. Tax benefit with data protection

Multiple tax benefits are provided to fintech industries in Dubai, such as zero tax on 50 years of profit, capital, or assets from 2004. The regulations of DIFC again and again mention due diligence, risk assessment, and compliance because it is known to them that fintech poses a great challenge when it comes to data and privacy infringement.

Deposits, investment and virtual assets incorporated business license

The firms that are interested in carrying out financial services in Dubai need to submit applications to the DFSA Dubai financial services authority. In the application, the industry needs to mention the business they wish to get engaged in and the category of license that they are procuring.

1. VARA Licensing

Dubai's virtual assets regulatory authority (VARA) in the year 2023 issued Dubai's virtual assets and related activities regulations to set a comprehensive virtual assets framework and to regulate the budding virtual asset-based fintech companies. The reason behind these regulations was to build economic sustainability and cross-border financial security. Any firm that is planning to carry out virtual asset activities in the region of Dubai needs to obtain a VARA license before commencing its operations. Any new firm or an existing firm needs to apply for a license as per the rules and regulations set under VARA.

2. Category-1 License-

Base capital- US$10 million, Activities of business- accepting deposits, managing an unrestricted profit-sharing account, A well-diverse and organized board with a majority of independent directors, the board must form robust governance policies Senior banking professional with 10-15 years of experience. The senior banking professional must be an ordinary resident of the UAE. Senior and well-qualified finance officer. Senior risk professional.

Senior compliance professional with more than 10 years of experience and must be an ordinary resident of UAE. Senior AML professional with over 10 years of experience, ordinary resident in the UAE.Senior and suitably qualified internal audit professional.

3. Category 2 license-

Base capital must be US$2 Million, and the industries obtaining licenses in this category must be dealing in the business of investments and providing credits. This licensing category business is considered a high-risk activity, and the requirement for staffing depends upon the scale, scope, and nature of the product portfolio approved by the DIFC.

The board of directors must be diverse with independent directors. The policies of the board must be robust. The chairman of the board has to be a non-executive director. There must be a senior banking professional with 10-15 years of experience and must be an ordinary resident of the UAE.

There must be a finance officer who does not need to be a resident of the UAE. One senior risk professional. One senior compliance professional with over 10 years of experience must be an ordinary resident of the UAE. One money laundering reporting officer with over 10 years of experience should be an ordinary resident of the UAE. A qualified inter-organization professional who is suitable for being an auditor.

Investment financial services license

1. Category 3 A-

Base capital must be US$500,000. For businesses involved in dealing with investments as matched principals or dealing with investments as agents, there must be a well-organized and diverse board with independent directors and robust governance policies.

The chairman must be a non-executive director. One senior banking professional with 10-15 years of experience should be an ordinary resident of the UAE. A finance officer does not need to be a resident of the UAE. A risk officer Or compliance officer with more than 10 years of experience must be an ordinary resident of the UAE.

There must be a senior anti-money laundering officer with over 10 years of experience and must be an ordinary resident of the UAE. A professional auditor is outsourced from a professional firm that is qualified to conduct an internal audit.

2. Category 3B-

Base capital must be US$4 million. Industries involved in this do activities of providing custody of funds and trusteeship of funds. Operating employee money purchase scheme and acting as the administrator of an employee money purchase scheme.

A well-organized and diverse board with independent directors and robust governance policies. A senior executive officer must be a making professional with 10-15 years of experience and must be an ordinary resident of the UAE.

A senior and well-qualified finance officer must be a resident of the UAE. A Chief risk officer: A senior compliance professional with over 10 years of experience and must be an ordinary resident in UAE. A senior anti-money laundering officer

3. Category 3 C-

Base capital is US$5 million and includes firms carrying on one or more financial services of managing a collective investment fund, managing assets, providing trust services, providing custody, and managing a profit-sharing investment account.

4. Category 3D-

base capital must be US$20 million, firms operating a payment account, executing payment transactions, issuing payment instruments

Licensing Process for the Fintech Industry

Initial stage

The application process starts with an elaborate introduction and detailed guide to DIFC and DFSA. It takes 15-20 days to draft the RBP and financial models.15-20 days for comments from the DFSA compilation of the comprehensive application. Policies and procedures, detailed KYC of all key individuals involved.

Middle stage

60-90 days for formal submission and DFSA review, interviews with the SEO, FO & CO/MLRO, and Recommendation to the authorizing committee. Analysis of legal structure and formations with the ROC.

7-10 days for office lease, signing articles, receipt of commercial license.

Final stage

25-40 days for bank account opening, deposit of share capital, and confirmation to the DFSA. In parallel to this is the ongoing process of professional indemnity insurance, auditor confirmations, and final submissions.

Approval stage

2-3 days for receipt of financial services permission, i.e. date of approval of licensing.

License for Islamic financial institution

Category 4 license for Firms operating in arranging credit or deals in investments/advising on financial products, insurance intermediation, insurance management, providing fund administration, arranging credit, advising on credit, operating a crowdfunding platform, and providing trust services.

Base capital must be US$ 10,000. Category 5 license for Firms working as an Islamic financial institution, the entire business of the firm is by the principles of sharia and managing profit-sharing investment accounts. Base capital must be US$ 10,000,000.

Steps to Obtain a Fintech License in Dubai

Before applying for a license for the fintech industry in Dubai, it is very important to consult with a local business expert or with an expert designated by DFSI who will assess the business model of the fintech industry and provide a growth analysis. Registering a name for a company is the first step. For this, the fintech industry will have to stick to the naming parameters set by the UAE authorities.

Any name that is indecent, blasphemous, and offensive language or related to a well-known organization is not allowed. Details about business and shareholders, along with the proof of address and identification. Application for a visa and opening a corporate account are necessities. For visa application, one needs to undergo a fitness test, blood test, and chest x-ray.

Our commitment to you

Goal-based outcomes

At Enterslice, we value our clients' time and resources, and therefore, to achieve the same, we derive goal-based strategies to streamline our operations.

Consistency

We have a dedicated team of experts who know how to remain committed and objective, along with the skill to make a business settled.

Balanced approach

We aim to achieve the right balance for our clients' businesses, especially when it concerns the fintech industry.

Our success story

We have 10+ years of experience in the fintech domain, along with licensing, company establishment, and other legal compliances. Our journey is full of success stories that we achieved through these years by making the right decisions for a budding or an established fintech business in Australia.

Hassle-free Fintech license procurement with Enterslice Fintech licensing services

Fintech licensing services must be availed by every fintech entity, especially when establishing it in a foreign country, because the rules of licensing vary worldwide. A potential and strategic fintech licensing plan ensures easy procurement of licenses because, in most of the nation, rejection of the license results in delay and add-on controls and compliances.

With the help of our consultation and advisory, you can focus on building the core of your fintech business while we will be ensuring the developing license compliance in accordance with the regulatory framework.

Why choose us

Vision & core values

Your trust is what we have faith in, and we can do anything to keep your trust intact. We engage the community without staking our core values and vision.

Customer-centric services

We understand that the core of any business is its employees. Our team of experts are polite and competitive and responds efficiently to the queries of each customer. Our belief is to develop long-term and trustworthy relationships.

Convenient and consistent

We provide our clients with an environment that is convenient and consistent for them. We work without friction and with the ties of trust and credibility.

Reputed & trustworthy

If you go by word of mouth, then all our clients give positive feedback for our services, making us a reputed and trustworthy organization.