Dubai is currently one of the top-leading hubs for trade and finance. The high net worth of financial consultants in Dubai is in elevation. Besides, there is also huge demand and potential for a financial consulting business. In addition, with its strategic location and business-pro economy, it is easy to carry out financial consultancy businesses in the region. However, you need to obtain a financial consultancy license in Dubai before beginning your business operations.
A Financial Consultant License covers many finance-related activities including budgeting for clients, debt management, financial advisory services, financial planning, and more. This article will surely make you understand the entire process of setting up a financial consultancy firm, along with the procedure and cost of financial consultancy license in Dubai.
What does a financial consultant do?
A certified financial consultant can use their expertise for the following tasks –
- Teach clients and resolve their queries about potential risks and investment opportunities.
- Communicate with clients to discuss their financial objectives.
- Make recommendations on behalf of their clients
- Keep track of their clients’ accounts to make necessary changes in their investment policy.
- Fulfill the client’s needs and provide advice related to tax laws, insurance, mortgages, investments, etc.
- Sell insurance
Financial consultancy license in Dubai
Certified financial consultants can apply for a financial consultancy permit in Dubai. However, they need to first seek special approvals from the Securities & Commodities Authority (SCA) to complete the licensing procedure.
The SCA is the regulatory body that controls Financial Consultancy and Analysis business in UAE. As per the regulations, the company must approach SCA for a Financial Consultancy license. Once it obtains all the necessary permits including a trade license from the respective DED, it can get started with its business and commercial activities in the United Arab Emirates.
Apart from SCA, several other departments are involved in the license issuance of a financial consultancy firm. These departments are –
- Department of Economic Development(DED)
- Ministry of Economy
- Dubai Court
The DED describes the financial consulting activity as below:
Activity: Financial Analysis & Consultancy
License type: Professional
Description: The financial analysis and consultancy involve the systematic assessment of the financial statements in order to evaluate the past, and the current and to forecast the future performance of the companies. It also enables effortless decision-making by measuring securities and commodities and their contracts, market price trends, and transaction volumes. On the whole, it provides recommendations based on studies as well as on economical and financial research.
Activities allowed under financial consultancy license in Dubai
- Financial planning
- Financial advisory services
- Investment consulting
- Market research & analysis
- Investment portfolio modeling
- Market value trends & forecast
- Security consultation services
- Commodity consulting
- Feasibility studies
- Financial statements and performance analysis
- Decision-making on financial investment
- Other related contract consultation services
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Advantages of starting a financial consultancy firm in Dubai
When it comes to managing business and finances, people are stuck and confused with unresolved issues and queries. That’s when financial consultancy services come to the rescue.
In a business-thriving city like Dubai, financial consultancy can be of great help. Here’s why –
- An experienced consultancy can help in developing a plan suitable for your financial objectives.
- Proper financial advisories can help you generate high returns with low risk.
- You can seek help from a financial consultancy even after the completion of the project.
- Dubai has a growing market for financial consultancy businesses.
- A financial consultancy firm can revel in stable government, governance, and robust network of the banking system in Dubai.
- Technological improvements are growing day by day in Dubai.
- The overall financial ecosystem of Dubai is mounting to new levels with Fintech, blockchain, cryptocurrencies, digital banking, etc.
Documents required for setting up a financial consultancy in Dubai
Starting a financial consultancy firm in Dubai follows a straightforward procedure with minimal documentation. However, the requirement of particular documents may vary depending on the jurisdiction you choose for your business project.
The basic documents required for this process include the following:
- Details of the shareholder such as passport copy, photograph, updated CV, etc.
- Company registration form
- Business plan
- Approval from the Securities & Commodities Authority(SCA)
The experts of Shuraa will handle all the documentation procedures including the application form preparation and let you focus on strategies for growing the business.
Steps to apply for a financial consultancy license in Dubai
- Choose your business activity – The first and foremost step for setting up a business in Dubai is to select business activities you wish to conduct in the UAE. Ensure that the selected activities are approved by the authorities.
- Get the trade name approval – Find three names to select from. Also, remember to abide by the naming regulations of the UAE government.
- Choose a suitable business structure – Select a legal entity depending upon the nature of your business and the jurisdiction you chose for setting up the company.
- Prepare the application form – Once you choose a location for your business, Free zone or Mainland, then prepare the application form accordingly.
- Provide additional documents – Along with the application form, you need to submit some supporting documents of the shareholders such as passport copies, photographs, etc.
- Obtain the pre-approvals from the SCA – The Securities & Commodities Authority(SCA) is the authorized body regulating the financial consultancy and analysis business in the UAE.
- Submit other essentials – Submit the required documents as well as the requested fee to the authorities in charge of issuing the financial consultancy license in Dubai.
- Get the associated company documents – Receive the related company documents such as shareholder agreement, Memorandum of Association (MoA), tenancy contract, etc. from the concerned department.
- Apply for a UAE residency visa – Now you can proceed to further steps of the procedure, that is applying for a UAE residence visa and opening a corporate account in a bank.
Documents required for acquiring a financial consultancy license in Dubai
While applying for a financial consultancy license, a company must provide the following:
- Proof of share capital – A company must maintain a share capital of AED 1 million.
- Shareholding details – A minimum of 51% of the company shares must be with the UAE national.
- Details of the staff – The company must possess the required qualified technical and administrative personnel to conduct the business of financial consultation and financial analysis.
- Business plan – Being the most crucial part of the procedure, the business plan has to be prepared in both English as well as Arabic.
Summing up
Dubai presents itself as a great destination for global travelers as well as investors. It has also developed into a key trading hub in the Middle East. It acts as a bridge between the international financial markets of London & New York in the west to Hong Kong & Tokyo in the East. Hence, investors, especially financial consultants can set up their base in this region. However, to accomplish this task successfully, the company must meet all the regulatory and legal requirements as well as comply with the requisite parameters.
Shuraa Business Setup can provide you with the most innovative solutions to establish your company in this bustling city. Our services include the best pricing, packages, discounts, sponsorship solutions, and many more. Moreover, our experience and expertise in business formation will assist you in setting up your financial consulting business in a hassle-free way.
So, talk to our team right away and get more information on financial consultancy license in Dubai.
