Fintech Industry

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The fintech companies in Dubai are emerging fast. It has been fueled by a business-friendly environment and the fact that it provides one of the world’s best financial ecosystems. In recent years, Dubai has been at the heart of Fintech and is fostering innovation, attracting record investments and accelerating growth. 

Here, we take a look at how the fintech business in Dubai is evolving, the benefits associated with it and how to set up a fintech company in Dubai.

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Dubai International Financial Centre (DIFC) 

The Dubai International Financial Centre (DIFC) is a special economic zone that operates as a financial hub for companies operating through the Middle East, Africa, and South Asian Markets (MEASA). 

Regulated by the Dubai Financial Services Authority, an independent regulator exclusive to the zone, the centre has its own judicial system, a business framework that allows business professionals to conduct operations. 

DIFC allows the following corporate entities for business setup in Dubai:

  • Trusts
  • Associations
  • Investment Trusts
  • Limited Partnership
  • Recognised Company
  • Protected Cell Company
  • Limited Liability Company
  • Limited Liability Partnership
  • A company limited by shares
  • General Partnership Company
  • Open-ended Investment Company

DIFC also offers the opportunity to investors dealing in different business domains to invest in the region. They include:

  • Hotels
  • Art Galleries
  • Retail outlets
  • Cafes & Restaurants
  • Residential Apartments
  • Ultra-modern space options

Key Factors to consider before starting a Fintech Company in Dubai

Key Factors

Description
  • Consumer demographics
  • Learning about Dubai's tech-savvy and financially open population.
  • Adoption of digital payment
  • Digital payment with high-tech internet usage driving Fintech demand.
  • Consumer attitude
  • Positive perception of Fintech solutions.
  • Fintech funds & accelerators
  • Easy funding options along with mentorship for Fintech startups in Dubai.
  • Availability of private capital 
  • Availability of hassle-free private investors in promising Dubai-based Fintech companies.

Benefits of Starting a Fintech Company in Dubai

Benefits

Description
  • Strategic location

Dubai’s strategic location makes it a perfect place to set up a fintech business
  • Business-friendly environment

The business environment of Dubai is a boon to new investors and entrepreneurs
  • Tax Benefits

Starting a business in Dubai comes with a lot of tax benefits like low corporate tax. 
  • Hassle-free business setup

An easy business setup process saves you time and money.
  • Government support

The government offers various incentives to start-ups to boost their business.

How to Start a Fintech Company in Dubai?

To set up a fintech business in the Emirate, you need to follow the below-mentioned process:

  • Get the Initial Approval

File an application with the relevant authorities for the initial approval of setting a fintech company in Dubai.

  • Pay the Minimum Share of Capital

You must pay the minimum share capital required for setting up the fintech business in the Emirate.

  • Open a Business Bank Account

You also need to open a corporate bank account in the Emirate. A bank account is needed to ease your business transactions in Dubai. 

Documents needed for starting a Fintech Business in Dubai

Here is the list of documents that need to be submitted for opening a fintech company:

  • History of the financial position
  • A well-structured business plans
  • Proposed institution’s organisational structure
  • Anti-money laundering procedures and controls
  • Information on the operating system and controls
  • Details of the shareholders (identity and address proof)
  • Audited shareholder’s accounts for the past three years.
  • The company’s internal audit functions and compliance system
  • A propriety certificate confirming the institution’s fitness to conduct business

Dubai's booming business environment offers immense opportunities for entrepreneurs.  With its strategic location, supportive government, and streamlined business setup process, Dubai is the ideal launchpad for your fintech venture.  Avoid the hassles and ensure a smooth business establishment – contact Commitbiz today, your Dubai business setup expert!

FAQ's

What are the tax benefits for Fintech companies in Dubai?

Dubai offers a low corporate income tax rate for most businesses, with no foreign ownership restrictions.

What types of Fintech businesses are encouraged in Dubai?

Dubai is particularly interested in Fintech solutions that address regional needs. This could include mobile payments, blockchain technology, crowdfunding platforms, or insurance solutions.

What are the regulatory considerations for Fintech companies in Dubai?

Fintech companies in Dubai require specific regulatory approvals depending on their activities. The Dubai Financial Services Authority (DFSA) is the primary regulator for most Fintech businesses. Understanding the regulatory landscape and obtaining the necessary licenses is crucial before launching your Fintech business.