Overview

A flourishing financial and investment environment has come from favorable legislation, state assistance, and the population's purchasing power. They have made the UAE one of the most secure countries in the world when it comes to financial dangers. You can issue loans, manage and advise, collect commissions and rewards while managing securities and finances in the UAE and overseas without paying taxes or sharing tax information if you have a license and tax resident status.

The financial consultant must receive certification and specific approval from the Security Commodity Authority in order to obtain a license in Dubai (SCA). The consultancy firm must also follow the Department of Economic Development's (DED) and Ministry of Economy's norms and regulations. After acquiring a proper license from the Security Commodity Authority, the company will begin its operations (SCA)

The activity is described as follows by the Department of Economic Development (DED):

• Financial Analysis and Consultancy Activity
• Activity Group: Exchange and Financial Services
• License Type: Professional
• Activity Description: It covers companies that provide financial analysis, forecasting, and predictions, as well as assessments of securities and commodities, to their clients.

Regulations:

• The Securities and Commodities Authority (SCA) is the regulatory body in charge of financial consulting and analysis in the UAE.
• According to SCA's standards, the company must apply for a Financial Consultancy and Analysis license.
• After receiving a proper license from SCA and a trade/commercial license from the relevant DED of the Emirates, the company will begin its business and commercial activities.

Types of financial operations that can be licensed in the United Arab Emirates

Your business development strategy is determined by the license you choose, so choose the right type of activity carefully. Dhanguard will assist you in deciphering license concerns and specifics.

Commercial ventures-

Recruiting and investing in commercial company ventures and assets, as well as management.

Securities transactions-

In the financial markets, there are financial instruments, investments, and client (intermediary) operations.

Financial Services-

Issuing credit cards and financial products, as well as providing direct and trade finance.

Provider of payment services-

Payment Service Provider (PSP) license - activities involving the receipt and processing of payments for third parties.

Advisory services for investors-

Providing a variety of services relating to asset optimization, investment attraction, and placement.

FinTech licenses-

FinTech licenses financial services that make use of cutting-edge technologies such as Big Data, AI, and blockchain.

Insurance and reinsurance-

Individuals and businesses can get insurance and reinsurance goods and services from insurance and reinsurance companies.

Creating Investment Funds-

Capital entails pooling individual and corporate funds for the aim of joint investment.

Asset trust management-

Asset trust management is the fee-based placement of cash from investors in firm assets and financial products.

Investment and financial licenses in the United Arab Emirates: Differences and Peculiarities

 

Incorporation on the Mainland

• Local (mainland) enterprises can do business in the UAE's home market while also representing interests and operating in international markets.
• This solution provides status and trust with banks and counterparties, as well as respect in the worldwide arena, due to the company's position in the local market. It's got a convoluted structure.

Financial centres

• The right to undertake financial and investment business transactions on a permanent basis in specialized FTZs and worldwide markets is ensured by these licenses.
• A license in the DIFC and ADGM, the UAE's key financial centers, ensures the company's high standing and respect. 100% foreign ownership is permitted, although there is a lengthy registration process.

Incorporation in a several FTZs

• Companies registered here are used to conduct business outside of the UAE and to execute financial and investment transactions.
• It prevents you from freely operating in the domestic market. Local banks and counterparties are taking a cautious approach. Allows for 100% foreign ownership and is simple to obtain a license.

Jurisdictions in the United Arab Emirates for forming Investment and Financial Companies

Mainland (Local Area)

The Economic Development Departments of each of the Emirates' Mainland (Local Area) serve as Registrars. For a number of licenses, additional requirements and authorization from local financial regulators may be required.

Dubai International Financial Center (DIFC)

DIFC's structure includes a distinct financial regulator (DFSA), a registration authority, and its own arbitration court. Additional requirements and authorization from the internal financial regulator may be required for a number of licenses.

Abu Dhabi Global Market (ADGM)

ADGM's structure includes a separate financial regulator (FSRA), a registration authority, and its own arbitration court. Additional requirements and authorization from the internal financial regulator may be required for a number of licenses.

A number of Free Trade Zones of the Northern Emirates

There are no internal financial regulators and only limited licensing requirements. Most business activities are not subject to additional rules, however operating in the local market is forbidden.

UAE government regulators' requirements.

The Central Bank of the Emirates (CB UAE) and the Committee for the Management of Financial and Commodity Markets must authorize some investment and financial licenses before they can be used for business purposes (Securities and Commodities Authority, SCA).

State Control

Depending on the type of operation and the jurisdiction of incorporation, different state criteria apply. The Central Bank of the UAE (CB), the Financial and Commodity Markets Management Committee (SCA), and the Police are the major regulating bodies.

Share Capital

In most circumstances, there are regulations relating to the amount of approved capital, with minimum levels ranging from 41 000 to 1.4 million dollars. In extreme situations, the permitted capital required for complex permits might be as much as US$8-14 million or more.

Bank Guarantee

For the fulfilment of financial obligations to other parties, the State has established standards for a bank guarantee. The guarantee amount is determined by the type of financial or investment activity. The needed deposit can be fairly large at times.

Qualified personnel

Financial managers, analysts, specialists in internal control over financial transactions, and a general manager with the required degree of education or qualifications are among the prerequisites for staffing levels and skills.

Equipped Office

Financial and investment firms must meet a number of requirements, including having a physical office that meets regulatory standards and international standards. It must also be suitable for confirming it as the company decision-making centre in compliance with Economic Substance standards.

Internal Control

To minimize risks, regulators must guarantee that an internal control mechanism is in place as well as rigorous adherence to the law. They're also looking for procedures and processes to ensure that money laundering laws are followed.

What are the activities that are allowed under this license?

• Consulting on Securities, Commodities and related Contracts
• Feasibility Studies
• Financial Advisory Services
• Financial Planning
• Financial Statements and Performance Analysis
• Investment Consulting
• Investment Portfolio Modelling
• Market Research, Analysis, Price Trends and Forecasts

Factors to be considered for obtaining the financial consultancy license

• Current and prospective competitors
• Level of competition
• Market share of the competitors
• Target market
• The demand for the company’s services

Why does every entrepreneur/businessman in Dubai need to engage a consultant?

For expert advice

To start a business in Dubai, you must have a thorough understanding of the market and economics. A competent expert will walk you through the entire business setup procedure. The expert who knows how to start a business in Dubai in depth, is up to date on market trends, and has real-time knowledge of the industry, business rules, and regulations.

To assist you in registering your business and locating the best location:

A consultant can provide you with experienced advice on where to establish your company. A consultant can provide good advice on where is the best-suited location for your sort of business and how to begin the process, whether it is an Offshore company, Mainland company, or Free Zone firm.

To save time, money, and effort:

A business consultant who is familiar with the financial and legal requirements of the UAE will guarantee that your company complies with the country's financial and legal standards. This will save you time and the stress of having to complete a large quantity of paperwork. The consultant will also aid you in evaluating alternative options that are appropriate for your sort of business activity, reducing unnecessary risks and allowing you to make an informed selection.

To choose the correct business activity:

The Department of Economic Development (DED) categorises all businesses in the UAE based on their activity. Permission and license are required for classification. A consultant will not only help you choose the correct type of business activity for you, but will also aid you with the legal paperwork.

Why Choose Dhanguard?

Conducting investment and financial activities in the UAE, as well as dealing in overseas markets, necessitates a thorough awareness of local laws and the recruitment of a licensed participant to complete incorporation requirements. Dhanguard offers the knowledge, expertise, and license to handle all aspects of forming an investment and financial company in the United Arab Emirates