The UAE is quickly becoming a hotspot for fintech startups. With over 2600 fintech companies and a market value set to hit $5.7 billion by 2029, it’s a prime location for fintech businesses.
Setting up a fintech company in the UAE is not only straightforward for foreign entrepreneurs but also offers numerous advantages, such as a strategic location, a tax-friendly environment, and a robust regulatory framework.
To help you navigate the process, we’ve outlined the essential steps, required documents, and top locations for establishing your fintech business in the UAE.
Steps to Start a Fintech Company in the UAE
Starting a fintech company in the UAE involves several key steps. You’ll need to choose your business structure, select a location for your company, and open a bank account.
First, you’ll choose a structure. This could be a sole proprietorship, a partnership, or a limited liability company (LLC). Each has its own advantages and considerations, so it’s worth researching which one best suits your needs.
Selecting your location is a critical decision, and this is where free zones come into play. We’ll dive deeper into this in the next section.
Once you’ve decided on your location, you’ll need to obtain the necessary licenses and permits. For fintech companies, this might include specific licenses from regulators like the Central Bank of UAE or the Securities and Commodities Authority, depending on what your business does.
Finally, you’ll need to open a corporate bank account to handle your company’s finances. The UAE has local and international banks, many of which offer specialized services for fintech companies.
Throughout this process, one of the most crucial decisions you’ll make is choosing where to set up your company. For most fintech startups in the UAE, free zones offer the most attractive option. Let’s explore why, and look at the top free zones for fintech companies.
Where to incorporate a fintech company in the UAE
One of the key steps in setting up your fintech business is choosing where to incorporate it. In the UAE, the choice is between a free zone and mainland registration. For tech startups, incorporating in a free zone is often the better choice.
Free zones are special economic zones where opening a business is easier and faster than in the mainland UAE. Think of them as countries inside a country, designed for foreign entrepreneurs.
Free Zones offer lots of benefits: more accessible office space, easier visa processing for employees, and tax exemptions. They also offer great infrastructure, like high-speed internet and data centers, which is a must for fintech startups.
There are over 40 free zones in the UAE, but you can’t just pick any one. Free zones are specialized by industry, and some cater specifically to the technology and financial sectors. These specialized zones offer additional support such as mentorship programs, access to investors, and integrated accelerators, like DIFC’s FinTech Hive
There are several free zones suitable for fintech startups, but our top picks would be:
- Dubai International Financial Centre (DIFC).
- Abu Dhabi Global Market (ADGM).
- Dubai Internet City (DIC).
- RAK Digital Assets Oasis (RAK DAO).
Each of these zones has its own unique advantages. Below, we’ll take a closer look at each one and explain the process and costs of setting up a business there.
Dubai International Financial Centre (DIFC)
DIFC opened in 2004 in the center of Dubai’s financial area. This free zone is geared towards fintech, insurance, wealth management, tech and law firms.
One of DIFC’s main draws is its location. You’ll be right in the middle of Dubai’s money hub. This means easy access to potential clients, partners, and investors. The free zone is home to over 40,000 entrepreneurs and 5000 companies. It features integrated accelerator programs: Fintech Hive and Dubai Future.
How to set up your company in DIFC
First, you’ll need to register on the DIFC website. Once you have an account, submit an expression of interest. When DIFC reviews it, they’ll email you access details to your personal portal.
Next, you’ll apply for preliminary approval. This step involves submitting initial company information for DIFC to review.
After getting preliminary approval, you’ll register your company and choose an office. This step requires signing several electronic forms. You’ll need to sign the Articles of Association (AoA), a Director Appointment Declaration, and a Staff Sponsorship Agreement.
The final step is getting your founding documents and processing visas. DIFC will issue your company’s registration certificate and commercial license. You’ll also need to get an Establishment Card and arrange residence visas and Emirates ID cards for your staff.
The whole process typically takes a few weeks. Your speed in providing information and making decisions can affect the timeline.
What documents you’ll need:
- A copy of your passport.
- Your contact details (email, phone, and address).
- Details about your company (name, type, what you do, office preference).
- A filled-out application form.
How much does it cost?
The total cost is roughly $8,000 per year. Here’s what it consists of:
- $1500 for the license.
- $100 for the registration fee.
- $6300 for the annual rental of a Flexi Desk, although a monthly payment plan of $525 per month is available upon registration.
- $250 for the data protection fee.
Abu Dhabi Global Market (ADGM)
ADGM launched in 2015 on Al Maryah Island, Abu Dhabi’s new financial district. It’s quickly become a key player in the UAE’s financial sector, focusing on banking, asset management, and fintech.
What sets ATM apart is its strategic location. This free zone spans 14.3 million square meters, and is one of the largest financial zones globally. It’s home to landmarks like ADGM Square, The Galleria Mall, and Cleveland Clinic Abu Dhabi. This mix of finance, retail, and healthcare creates a dynamic ecosystem for businesses.
How to set up your company in ADGM?
To start your company in ADGM, first choose your business activity and structure. This decision will guide the rest of your application process.
Next, you’ll need to get your company name approved. ADGM has specific naming conventions, so make sure your choice complies with their rules.
Once your name is approved, you can register your company online. ADGM’s digital platform streamlines this process, making it quicker than traditional methods.
After registration, you’ll select your office space. ADGM offers various options, from shared workspaces to private offices, catering to different business needs and budgets.
The final step is obtaining your license. ADGM will review your application and issue the appropriate license based on your business activities.
Throughout this process, you’ll work with ADGM’s registration authority. They’re known for their efficient service, often processing applications within days.
What documents you’ll need:
- Passport copies of shareholders and directors.
- Proof of address (recent utility bill or bank statement).
- A detailed business plan.
- Bank reference letters.
- Lease agreement. You will be able to choose one of the lease types after submitting an application to the Free Zone. The price will depend on this.
- Lease Agreement with Registered Address, which is mandatory. The address must be located on Al Maryah Island.
- Corporate documents (if the shareholder is a company).
During registration, the following documents and information will be requested and reviewed individually for each application to determine the cost:
- In-principle approval from the ADGM Financial Services Regulatory Authority.
- Economic Substance Form.
- Data Protection details and the designated Data Protection Contact Person.
How much does it cost?
For financial companies the fee is about $15,000.
This price is broken down as follows
- $200 for the name reservation application.
- 1,500 for the application to register a company/partnership.
- $4,000 for the issuance of a trade license.
- $9,000 to cover the Business Activity Fee – $300 to cover the Data Protection Fee.
- $300 for data protection.
The price doesn’t include the cost of the permit and supplementary forms or the lease agreement.
Dubai Internet City (DIC)
Dubai Internet City, established in 1999, is the region’s leading tech-focused business hub. It’s part of the TECOM Group, which develops strategic business districts across Dubai. DIC has become a magnet for global tech giants, innovative startups, and everything in between.
DIC’s main draw is its tech-centric ecosystem. It’s home to over 1,600 companies, ranging from Fortune 500 firms to local startups.
How to set up your company in DIC?
The process starts with an online application. You’ll need to submit an expression of interest through DIC’s portal, outlining your business plan and activities.
Once your initial application is approved, you’ll sign and email the necessary registration documents. These typically include your company’s articles of association and shareholder information.
Next, you’ll choose and sign a lease agreement for your office space. DIC offers a range of options, from co-working spaces to custom-built offices.
The final step is obtaining your license. DIC will review your completed application and issue the appropriate license based on your business activities. Throughout the setup process, DIC’s business support team is available to guide you.
What documents you’ll need:
- Passport copies of shareholders and directors.
- A detailed business plan.
- Proof of company address.
- Bank references.
- Completed application forms.
How much does it cost?
Setting up in DIC costs around $5,000 in total. This breaks down into several components.
You’ll pay about $960 for registration and $4,100 for the license fee. Visa-related costs run about $1,300 per person, covering medical exams, visa fees, and Emirates ID. An immigration card, valid for one year, costs about $550. DIC also requires a minimum share capital of $2,700. Keep in mind that additional expenses like office rent aren’t included in this total and will vary based on your needs.
RAK Digital Assets Oasis (RAK DAO)
RAK Digital Assets Oasis, launched recently in Ras Al Khaimah, is the UAE’s latest free zone dedicated to digital and virtual asset companies. It’s an ecosystem for businesses in blockchain, crypto assets, and virtual assets.
RAK DAO stands out for its focus on blockchain and cryptocurrency. This niche focus makes it particularly attractive for fintech startups working with cutting-edge digital financial technologies.
How to set up your company in RAK DAO?
The process starts with choosing your business activity. RAK DAO offers a range of options for digital asset businesses, from blockchain development to cryptocurrency trading.
Next, you’ll submit an online application. RAK DAO’s digital-first approach means most of the process can be completed remotely, making it convenient for international entrepreneurs.
After your application is reviewed, you’ll need to sign and email the necessary documents.
These typically include your company’s articles of association and shareholder information.
Once your documents are processed, you’ll receive your license. RAK DAO aims to make this process as quick and seamless as possible, often completing it within days.
What documents you’ll need:
- Passport copies of shareholders and directors.
- A detailed business plan focusing on your digital asset activities.
- Proof of address.
- Completed application forms.
How much does it cost?
About $3,500 for 0 Visa eligibility to $5,500 for 1 Visa eligibility. This covers your initial registration and first-year license fees. The exact amount varies based on your business activities and structure.
Wrapping up
The UAE offers several attractive free zones for fintech startups, each with its own strengths. Your choice will depend on your specific needs, budget, and long-term goals. Here are the key takeaways to consider:
- Free zones are perfect for fintech startups. They offer benefits like tax exemptions, and streamlined setup processes.
- Good free zones for fintech companies include DIFC, ADGM, DIC and RAK DAO.
- In each of these 4 zones, you can register a business online and the process typically takes days to weeks.
- Setup costs start from $1,000 in RAK DAO and go up to over $15,000 in ADGM.
The choice of free zone can impact your access to customers, partners, and investors, so consider your target market carefully.
