How to Set Up a Financial Company in Dubai?

“Finance without a strategy is just numbers and strategy without finance is just Dreaming.”

The nation of United Arab Emirates, one of the rising nations amongst the GCC countries, is one of the burgeoning grounds of investment. Understanding the need for finance for the existence of corporate survival, the ground of UAE has been eyeing being one of the global financial hubs. 

The rapid increase in the company establishment in the region has eased out the financial aspects in numerous ways. Business investors and entrepreneurs who are dealing with the financial ground have got an enormous option to set up a financial company in Dubai. 

If you hold a financial business plan, then UAE is the ground to execute. Let’s understand the financial scenario in the region.

Dubai Financial Market (DFM)

Incorporated in the year 2000, the DFM is the first exchange in the region of UAE, consolidates its operations with Nasdaq Dubai to create a powerful capital marketing hub. The DFM covers nine sectors: Real Estate, Banking, Insurance, Financial Services, Transportation, Consumer Staples, Services, and Telecommunications. 

As the financial sector is one of the core focuses, let me take you through certain highlights that you should be aware of while dealing in the finance industry and holding a plan to operate your business on the grounds of UAE.

Types of Financial Companies in Dubai

The region provides the flexibility to the investors to come forward and start any of the following when it comes to financial business setup in Dubai.

1. Banks

The banking industry in the UAE has undergone multiple transformations with a blend of tech. Ranging from personal to corporate transactions, every step is linked with digitalization today, which is a new edge that banks need to shape themselves accordingly. 

The UAE's financial soundness has spiked for national and foreign banks. 

2. Financial Investment Companies

The next option that the investors have in their mind is regarding the investment companies in the UAE. Each domain contributes to enhancing the financial stability of a nation. 

With the help of the diversions mentioned above, you can select the relevant sector that interests you. However, there are certain tasks of a financial investment company that is the core responsibilities. 

A few of the duties are highlighted below:

Tasks of Financial Investment Companies

According to the legal regulations stated by the Central Government of UAE, the financial investment companies have got the following sets to be performed as defined institutions which include:

  • Opening investment accounts
  • Portfolio management for third parties (individuals and companies)
  • Prepare economic feasibility studies report
  • Market the shares
  • Form or manage investment funds
  • Subscribe to corporate capital and syndicate loans.

To leverage the finance industry to the next level, the Government of Emirates has built-in dedicated zones that focus on enhancing the growth possibilities for the sector. Dubai International Finance Centre (DIFC), established in the year 2004, turned out to be a major financial hub for the MENA region. 

Let’s take a step forward and understand more about it.

Dubai International Financial Centre (DIFC)

Located at Sheikh Zayed Road, the DIFC is a perfect investment destination that holds a distinct jurisdiction when it comes to employment, corporate security, and civic bodies. The grounds hold for business entrepreneurs and professionals who want to start their businesses in the financial sector. 

The ecosystem holds a count of more than 2,289 registered companies along with over 24,000 workforces. The center has introduced a regulatory framework for the SME sector. 

Areas of Business in DIFC

With a business-friendly environment, the region of DIFC allows business investors to operate in some specified areas. Business owners and professionals consider DIFC as the ultimate investment ground due to the lucrative benefits that the region provides, which include:

  • No restrictions on foreign exchange
  • 100% foreign ownership
  • Complete exemption on personal income
  • Full repatriation of capital invested and profits earned
  • Strict money laundering options
  • Independent Regulatory Framework
  • Hub and Spoke Business Model.

How to Start a Finance Business in Dubai?

Now, before you proceed ahead towards the initial steps of starting a finance business in Dubai, you need to understand that the Company Law in UAE imposes certain guidelines that need to be followed. Any company needs to obtain a specific license which is issued by the Central Bank of the UAE, located in Abu Dhabi, to initiate the company incorporation process.

Appoint a Local Sponsor

The presence of a local sponsor in Dubai is required who needs to hold 51% shares of the company.

Pay the Minimum Capital

The minimum capital required to establish a financial body is 1 million AED. For financial investment companies, the capital shall not be less than 25 million Dirhams.

Obtain Services from a Financial Consultant

The management must obtain services from a financial consultant. Proper audit proceedings must be implemented.

Note the Other Requirements

It is to be noted that foreign companies dealing in the finance background have got the complete flexibility to operate their business activities in Dubai, provided by the condition that they are operational for a period of more than five years in their home country.

Wondering whom to contact? Don’t worry. Your guide is just below.

Commitbiz Consultants is in-sink with the Government Authorities of UAE and is recognized as one of the top ten business consultants in the UAE. We are dedicated to providing the best incorporation services for your financial business entity in a hassle-free way. 

Our financial experts are well-versed in the legal grounds and can guide you at every step. Get in touch with our experts to know more about it and experience a smooth and swift company incorporation process. 

Contact us today-we’d be glad to assist.