DIFC Category 4 License

A Category 4 license is a specialized financial authorization issued by the Dubai Financial Services Authority (DFSA) that permits entities to advise on financial products, arrange credit, or introduce investments without holding or managing client assets.

Under updated DFSA prudential rules, the standard base capital requirement for a Category 4 advisory and arranging firm is US$ 30,000. Specialized commercial activities, such as operating a crowdfunding platform, require a higher base capital threshold of US$ 140,000.

To obtain the license, applicants must prepare a comprehensive Regulatory Business Plan, submit formal financial projections, pass rigorous DFSA executive interviews, and complete formal incorporation with the DIFC Registrar of Companies.

KYC is a mandatory statutory compliance check to verify shareholder and ultimate beneficial owner identities. For DFSA-regulated entities, this requires certified passport copies, proof of residential address, detailed CVs, and verifiable professional track records to pass the "fit and proper" test.