Do you wish to start a financial services firm in DIFC or ADGM but feel confused about where to begin? Many entrepreneurs face this challenge when trying to enter the UAE’s fast-growing financial market. Setting up a financial company involves several stages, strict regulations, and documentation that can be overwhelming.
At Jitendra Business Consultants (JBC), we simplify this process so you can focus on growing your business while we manage your setup from start to finish.
Step-by-Step Process to Start a Financial Services Firm
Starting a financial services firm in DIFC or ADGM requires structured planning and strict compliance with financial regulations.
Both DIFC and ADGM operate as independent jurisdictions, each with its own financial services regulator, the Dubai Financial Services Authority (DFSA) for DIFC and the Financial Services Regulatory Authority (FSRA) for ADGM.
(Note: These authorities supervise financial activities, while company registration itself is handled by the respective registrars — DIFC Registrar of Companies and ADGM Registration Authority.)
Key Steps Include:
- Selecting the Jurisdiction:Decide whether DIFC or ADGM aligns better with your business goals. DIFC is internationally recognised for wealth management and investment services, while ADGM offers flexibility and lower costs for fintech and SME structures.
- Choosing the Legal Structure:Options include a Limited Liability Company (LLC), Branch Office, or Holding Company.
- Appointing Key Roles:Appoint directors, managers, a company secretary, and Ultimate Beneficial Owners (UBOs).
- UBO Declaration:Submit a formal UBO declaration as per UAE Cabinet Resolution No. 58 of 2020.
- Preparing Core Documents:Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
- Office Space Lease Agreement:Secure an approved office lease within DIFC or ADGM to obtain incorporation approval.
- Submitting the Regulatory Application:Prepare and submit a comprehensive application that includes your business plan, financial projections, risk management, and compliance framework to the DFSA or FSRA.
- Initial Approval:Once the regulator reviews your documents, in-principle approval is issued.
- Final Incorporation & Licensing:Upon meeting all conditions, the company is incorporated and issued a financial services licence.
JBC ensures each stage is completed accurately and efficiently to prevent delays or rejection.
Types of Financial Activities You Can Conduct
Both DIFC and ADGM allow a broad range of regulated financial activities, including:
- Wealth and Asset Management
- Investment Advisory and Fund Management
- Corporate Finance Advisory
- Custody and Trust Services
- Arranging Credit or Investment Deals
- Brokerage and Trading in Securities or Derivatives
- FinTech and Virtual Asset Services (under approved categories)
Each activity type requires specific capital adequacy and governance standards as defined by the DFSA and FSRA rulebooks.
Key Compliance and Regulatory Considerations
Compliance forms the backbone of every financial firm in the UAE. Both DFSA and FSRA maintain stringent frameworks based on international best practices and federal AML/CFT laws.
Firms must comply with:
- Federal AML/CFT Regulations:Adherence to UAE Federal Decree-Law No. 20 of 2018 and Cabinet Decision No. 10 of 2019.
- Corporate Governance:Clear policies for accountability and board oversight.
- Cybersecurity and Data Protection:Compliance with DIFC Data Protection Law No. 5 of 2020 and ADGM Data Protection Regulations 2021.
- Prudential Norms:Maintaining capital adequacy, risk management, and liquidity as per DFSA/FSRA requirements.
Jitendra Business Consulting provides full assistance in developing your compliance manual, AML framework, and risk policies to align with regulatory expectations.
Ongoing Regulatory & Periodical Reporting Requirements
Once licensed, every financial firm in DIFC or ADGM must adhere to periodic reporting obligations, including:
- Annual Confirmation Report to the Registrar.
- Annual UBO Disclosure and update of ownership details.
- AML/CTF Reporting, including suspicious transaction reports (STRs).
- Compliance with Prudential Norms, such as capital adequacy and liquidity ratios.
- Annual Audit Reports prepared by approved auditors.
- Data Protection Compliance Reports (especially for client and financial data).
- Periodic Returns to the DFSA or FSRA on financial performance and compliance status.
Non-compliance may lead to penalties or suspension of the licence, making regular advisory support crucial.
Costs, Timeline, and Documentation
Costs for DIFC company formation and ADGM business setup vary depending on your activity and scale of operation.
- DIFC generally has higher setup costs due to its global positioning and premium infrastructure.
- ADGM offers a cost-effective model preferred by smaller financial advisory and fintech startups.
Timeline: The full process typically takes 8 to 12 weeks, depending on regulatory feedback.
Required Documents Include:
- Regulatory Business Plan
- Financial Projections
- Shareholder & Director Details
- Fit and Proper Forms
- UBO Declaration
- MOA, AOA, and Lease Agreement
- Risk Management & AML Framework
Jitendra Business Consulting provides detailed checklists and manages all documentation to ensure compliance at every step.
Benefits of Setting Up in DIFC or ADGM
Both DIFC and ADGM provide an internationally respected platform for financial operations, offering:
- 100% foreign ownership
- Zero personal and corporate tax
- Independent common-law legal systems
- Access to regional and global financial markets
- Fintech and virtual asset regulations
In 2024, the DFSA and Virtual Assets Regulatory Authority (VARA) signed a Memorandum of Understanding (MoU) to strengthen cooperation on digital asset regulation — reinforcing the UAE’s position as a global hub for regulated financial innovation.
How Can Jitendra Business Consultants (JBC) Help?
Starting a financial services firm in DIFC or starting a financial services firm in ADGM becomes easy when you work with professionals who understand UAE regulations. Jitendra Business Consultants (JBC) specialises in DIFC company formation and the ADGM business setup process.
We help investors with:
- License selection and regulatory advice
- Preparation of business plans and compliance manuals
- Liaison with DFSA and FSRA for approvals
- Assistance with post-licence compliance and audits
Our focus is to simplify your journey from concept to licensing so you can operate with full legal confidence. To learn more about how we can support your business, contact us today.
