A DIFC Category 4 licence authorises financial firms to arrange deals in investments without holding client money. Here is a complete guide to obtaining a DIFC Cat 4 licence in 2025.
What Is a DIFC Category 4 Licence?
The DIFC Financial Services Regulatory Authority (DFSA) issues several categories of licence to financial services firms. A Category 4 licence: permits the firm to arrange deals in investments (introducing clients to investment products or service providers) and/or provide advice on financial instruments. It does NOT permit the firm to: hold or control client money, execute trades directly, manage client portfolios, or deal as principal. Category 4 is the entry-level DIFC financial services licence and has lower capital requirements than Category 1, 2, or 3.
DIFC Cat 4 Requirements
Minimum capital: USD 10,000 (the lowest of all DIFC financial services categories). Key personnel: you must appoint a DFSA-approved Authorised Individual to manage the financial services activities. Approved Individual requirements: relevant financial qualifications, prior experience in financial services, and passage of a DFSA competency assessment. Compliance officer: required (can be the Authorised Individual in small firms). Fit and proper: all controllers (shareholders with 10%+ ownership) must pass the DFSA fit and proper test. Business plan: a detailed 3-year business plan describing the specific deals you intend to arrange, client types, and revenue model.
DIFC Cat 4 Application Process
Step 1: DIFC company incorporation (DIFC entity must be incorporated before DFSA application). Step 2: DFSA licence application (submit via DFSA Authorisation Portal). Step 3: DFSA review (typically 3-6 months). Step 4: Approved Individual applications and competency assessment. Step 5: DFSA licence issued. Ongoing: annual regulatory returns, fees to DFSA (USD 2,000-10,000/year depending on business type). Total time from decision to licensed: 6-12 months. Total cost: USD 15,000-40,000 in DFSA application fees, compliance setup, and legal fees.
Pricing Evidence & Source Notes
Use this profile as a planning guide, not a final invoice. Confirm the current package, activity wording, visas, office or flexi-desk requirement and renewal amount before payment.
| Free Zone | Package | Year 1 Cost | Renewal Cost | 3-Year Total | Visa Option | Office / Flexi Requirement | Year 1 Confidence | Source Type | Conflict Status | Last Reviewed |
|---|---|---|---|---|---|---|---|---|---|---|
| DIFC | Non-retail Private Company official fee schedule | AED 25,000–45,000 (Innovation License + flexi-desk + 1 visa + establishment card); AED 60,000–185,000 for commercial/non-regulated entities with office space; DFSA-regulated firms from USD 50,000 (AED 183,000+) Confidence: Verified official price |
USD 12,000 annual licence before office and add-ons Confidence: Verified official price |
USD 44,000 incorporation plus three annual licence periods before office and add-ons Confidence: Verified official price |
Residence visas and immigration services are separate | A registered DIFC office is required; rent and fit-out are excluded | Verified official price | Official authority March 2026 handbook | No material public conflict recorded | July 2026 |
| What is included | The official non-retail Private Company schedule lists USD 8,000 incorporation and a USD 12,000 annual commercial licence. |
|---|---|
| What is not included | Office or lease, data-protection fee where applicable, establishment card, immigration and visas, DEWS, regulated permissions and advisory costs. |
| Hidden-cost risk | Retail, innovation, financial and regulated entities use different fee schedules. The public total shown here must not be applied to those categories. |
| Banking difficulty | Medium to high |
| Best fit | Finance, professional services, fintech and regulated firms needing DIFC framework. |
Source evidence: Review source | Methodology | Corrections.
Prices can change based on free zone authority updates, activity selection, visa count, office or flexi-desk requirement, shareholder structure, establishment card, immigration file, medical test, Emirates ID, insurance, banking support and consultant service fees. Last reviewed July 2026. Always request a current quote before payment. View methodology or compare all rows in the UAE Free Zone Cost Index.