A DIFC license allows businesses to conduct approved activities within the Dubai International Financial Centre. Standard non-retail private companies have a published incorporation fee of USD 8,000 (AED 29,400) and an annual license fee of USD 12,000 (AED 44,100).
The total setup cost depends on your business activity, company structure, office requirements, and regulatory approvals. DIFC attracts financial institutions, professional service firms, retail businesses, and technology startups seeking access to regional markets.
This guide explains DIFC license types, actual published fees, application requirements, and the company formation process.
What Is a DIFC License?
A DIFC license authorizes a company to conduct approved business activities within the Dubai International Financial Centre. DIFC Authority handles company registration and commercial licensing, while the Dubai Financial Services Authority (DFSA) regulates relevant financial services.
Businesses must select the correct license for their proposed activities. Companies conducting regulated financial services require the appropriate DFSA authorization before starting those activities.
What Are the Types of DIFC Licenses?
1. Commercial Licence for Non-Retail Businesses
A standard commercial licence is used by eligible businesses conducting corporate or commercial activities that are not classified as retail.
The current DIFC fee table lists the annual commercial licence fee for a private or public company conducting non-retail activities at USD 12,000. The same annual fee applies to several other non-retail structures, including recognised companies and certain partnership structures.
The licence fee is only one part of the overall setup cost. Registration or incorporation, office space, visas, establishment card charges, data protection fees and other applicable expenses may be additional.
2. Retail Licence
Businesses conducting eligible retail activities fall under a different fee category.
The current DIFC fee table lists the annual commercial licence fee for a retail private or public company at USD 5,100.
Retail businesses may also have additional requirements relating to their premises and activities, so the annual licence fee should not be treated as the complete cost of establishing a retail business in DIFC.
3. Innovation Licence
DIFC offers a subsidised Innovation Licence for eligible technology and innovation companies.
The programme covers businesses working across areas such as AI/ML, FinTech, InsurTech, PropTech, RegTech, HealthTech, EdTech, GreenTech, ClimateTech, MarTech, e-commerce and other technology-focused sectors.
The current DIFC Innovation Licence is subsidised for two to five years at USD 1,500 per year. DIFC also states that the licence provides access to premium coworking spaces and discounted visas.
This makes the Innovation Licence considerably different from the standard USD 12,000 non-retail commercial licence. However, eligibility and the conditions of the programme should be confirmed before applying.
4. Prescribed Company / SPV
A Prescribed Company (PC), also commonly referred to as a special purpose vehicle (SPV), is designed for specific holding and structuring purposes rather than running an ordinary operating business.
DIFC currently lists a USD 100 one-time application fee and a USD 1,000 annual commercial licence fee for an SPV. DIFC describes SPVs as passive holding companies that can be used to ring-fence and isolate assets and liabilities.
There has also been an important regulatory update in 2026. DIFC announced updated Prescribed Company Regulations in August 2026, broadening access to the PC regime while introducing a requirement for most Prescribed Companies to appoint a DIFC-licensed Corporate Services Provider (CSP) as their primary administrative and compliance interface. Exempt Prescribed Companies are treated differently.
Therefore, an SPV should not be treated as a low-cost alternative to a standard operating company. Its suitability depends on the purpose of the structure.
5. Representative Office
A representative office can be used by certain companies seeking a presence in DIFC without establishing a standard operating company for commercial activities.
The current DIFC fee table lists the annual licence fee for a representative office at USD 4,000.
Because a representative office has a more limited purpose than an operating company, businesses should confirm that their intended activities fit within the permitted scope before selecting this structure.
6. DFSA-Regulated Financial Services
Financial services require a separate regulatory consideration.
The Dubai Financial Services Authority (DFSA) regulates financial services conducted in or from DIFC. A company intending to conduct regulated financial services must obtain the appropriate DFSA authorisation rather than relying solely on an ordinary DIFC commercial licence.
The process for a regulated financial firm is also different. Depending on the activity, the applicant may need to submit a letter of intent, regulatory business plan and application documents to the DFSA before obtaining in-principle approval. The company then completes its DIFC registration and incorporation requirements before the DFSA issues its licence once the relevant conditions have been fulfilled.
How Much Does a DIFC License Cost?
The DIFC license cost depends on the entity type and activity. The following figures are based on the latest DIFC fee information available:
DIFC setup option | Current fee |
Private/Public Company – Non-Retail Registration | USD 8,000 |
Private/Public Company – Retail Registration | USD 3,400 |
Private/Public Company – Non-Retail Annual Licence | USD 12,000 |
Private/Public Company – Retail Annual Licence | USD 5,100 |
Representative Office – Annual Licence | USD 4,000 |
Prescribed Company/SPV – Application Fee | USD 100 |
Prescribed Company/SPV – Annual Licence | USD 1,000 |
Innovation Licence | USD 1,500 per year for 2–5 subsidised years |
DFSA financial-services application | Generally USD 15,000–70,000, depending on the financial services |
The DIFC Registrar of Companies fee table lists USD 8,000 for the registration/incorporation of a private or public company in the non-retail category and USD 3,400 for the retail category. The annual commercial licence fees are USD 12,000 and USD 5,100 respectively.
The Innovation Licence follows a separate subsidised programme, currently priced at USD 1,500 annually for two to five years.
For regulated financial firms, the DFSA states that application fees range from USD 15,000 to USD 70,000, depending on the financial services being provided. This is separate from DIFC entity registration and other setup costs.
What Else Can Add to the DIFC Setup Cost?
The licence and incorporation fees do not necessarily represent the total amount a business will spend.
Depending on the entity and circumstances, the overall budget may also include:
- Office or coworking space
- Establishment card fees
- Visa and immigration costs
- Personnel sponsorship-related deposits
- Data protection fees
- Corporate Services Provider fees, where applicable
- Professional or regulatory fees
- Accounting and audit costs
- DFSA fees for regulated financial activities
- Bank account-related requirements
For example, DIFC requires registered entities that process personal data to submit a data protection notification. Current notification fees range from USD 250 for retail entities, USD 750 for non-regulated entities and USD 1,250 for regulated entities, with annual renewal fees also applying.
What Documents Are Required for a DIFC License?
- Passport copies for shareholders and directors.
- Completed application forms and company details.
- Business plans and financial projections, where required.
- Parent company documents for branches and subsidiaries.
- Board resolutions and authorization documents, where applicable.
- Office or workspace information.
- Financial and compliance documents for regulated businesses.
The authority might request additional documents during its assessment. Financial services applicants should also review the DFSA requirements.
How Do You Obtain a DIFC License?
The application process involves selecting the right activity, submitting documents, obtaining approvals, and completing registration.
Step 1: Choose Your Business Activity
Identify your proposed products or services. Confirm whether your activities require commercial licensing, DFSA authorization, or additional approvals.
Step 2: Select Your Company Structure
Choose an appropriate company structure, such as a new company or eligible branch. Your choice affects documentation and applicable fees.
Step 3: Submit Your Application
Complete the relevant DIFC application and submit the required supporting documents. Provide accurate details about ownership, management, and intended activities.
Step 4: Arrange Office Space
Select workspace that meets your licensing requirements. Check rental terms, deposits, and physical presence requirements before committing.
Step 5: Obtain Required Approvals
Financial services businesses must complete the applicable DFSA authorization process. Other businesses should obtain any additional approvals required for their activities.
Step 6: Pay Fees and Receive Your License
Pay the applicable registration and licensing fees. Once all requirements are satisfied, the relevant authority completes the licensing process.
Step 7: Arrange Visas and Banking
Assess your company’s immigration requirements and prepare the relevant applications. Approach banks to apply for a corporate account, subject to their due diligence.
Is DIFC the Right Choice for Your Business?
DIFC suits companies seeking a recognized financial centre, professional services ecosystem, or relevant regulated financial activities. Its published fees might not suit businesses prioritizing the lowest setup costs.
Compare DIFC with other UAE free zones based on permitted activities, annual renewal fees, office requirements, visa allocation, and regulatory obligations.
Get Your DIFC License with A&A Associate
Choosing the right license helps you understand setup fees, approval requirements, and ongoing expenses. We assists businesses exploring company formation options in Dubai and across the UAE.
Contact us today to discuss your proposed business activity, compare suitable jurisdictions, and plan your DIFC company setup.
