Financial Services License in Dubai: Step-by-Step Setup, Cost & Regulatory Overview
Setting up a financial services business in Dubai is a great decision. First, it offers a safe and stable economy. Second, the city is open to foreign investors. Third, it has low taxes and clear rules, which make business setup easier. And lastly, Dubai links you to the rest of the world.
That’s the reason why lots of professionals and corporations are relocating here to expand. If you are planning to establish a financial services business in Dubai, there is no better moment than now.
What are Financial Services?
Financial services are money services offered by businesses to assist individuals and companies in managing their money. These services are banking, insurance, lending money, wealth management, and providing investment advice. Banks first assist individuals in keeping and moving money securely. Then, insurance institutions safeguard individuals against risks such as accidents or loss. Thirdly, financial advisers provide advice on saving, expenditure, and investing money prudently.
These services matter since they assist individuals in accumulating money and preparing for the future. Whether you are a person or the owner of a business, utilising financial services will ease your financial life and make it more secure.
About Financial Services Business in Dubai
The financial services business in Dubai is expanding quickly. Many large banks, investment firms, and new fintech companies already operate here. First, investors prefer Dubai because it’s secure and has good laws. Second, there are no taxes on income, which makes businesses save money. Thirdly, Dubai is well-located and has access to the rest of the world. And lastly, it has well-defined regulations for financial firms, making it simpler to establish and expand. With all these benefits, more individuals are opting to develop their financial services firm in Dubai and benefit from its prosperity.
Types of Financial Companies in Dubai
Dubai hosts various kinds of financial institutions. You can open banks, investment firms, insurance companies, and fintech businesses. Each comes with a license type.
Well-known types are:
1. Commercial banks
These banks receive deposits, lend money, and make payments. First, they cater to individuals and businesses.
2. Investment companies
These companies manage portfolios. Next, they assist people in growing wealth with intelligent investments.
3. Insurance companies
They provide protection policies. Next, they provide compensation for losses due to accidents, sickness, or damage.
4. Forex and cryptocurrency companies
They exchange currencies and cryptocurrencies. Also, they provide platforms for international transactions.
5. Financial advisory firms
They provide professional guidance. Last but not least, they advise clients on budgeting, planning, and achieving financial objectives.
Financial Company License in Dubai
To begin a finance business in Dubai, you require a financial company license in Dubai. It is overseen by the Central Bank or Dubai Financial Services Authority (DFSA), depending on the location.
Mainland companies obtain their license from the Central Bank. DIFC companies are licensed by the DFSA under DIFC financial business setup.
Documents Required for Financial Services License in Dubai
To obtain your financial services license in Dubai, you need to provide certain important documents. First, collect everything with care.
1. Business plan
You will have to draft a clear business plan. And also, it should describe your objectives and services.
2. Shareholder details
Mention names and details of all the shareholders. Then, display ownership percentages and their contact details.
3. Passport copies
Present valid copies of the passport for every owner. Then, verify that the copies are recent and clear.
4. Proof of address
Present address proof, such as a utility bill. Also, it should not be more than three months old.
5. Initial capital proof
Present bank statements to verify you have the necessary starting capital. Then, ensure it conforms to the rules.
6. Company setup forms
Complete and sign all forms of company establishment. Lastly, must submit them to the appropriate authority.
Compliance papers and DFSA or Central Bank approvals can also be required. Familiarisation with DFSA license requirements is the foundation for a successful application.
Cost of Financial Company License in Dubai
The cost of opening a finance company in the UAE is determined by your setup. If you are setting up in DIFC, there is a higher cost owing to high-end facilities.
Normal costs are:
- License fee: AED 15,000 to AED 50,000 (approx.)
- Office rent: AED 20,000 to AED 60,000 (approx.)
- Capital requirement: AED 1M to 25M (approx.)
How to Open a Finance Company in UAE
It is an intelligent idea to start a finance company in the UAE. The procedure can appear complicated, but it is simple if you take the correct approach. To begin, know your choices. Next, plan well before you start.
Step 1: Select your jurisdiction: DIFC, mainland, or free zone
Begin by selecting where you wish to establish. DIFC is appropriate for international companies. The mainland provides exposure to UAE clients. Free zones allow tax advantages and 100% ownership.
Step 2: Choose the company type
Second, determine what type of finance company you wish to be, such as a bank, investment company, or consultancy. It influences the license type and organizational process.
Step 3: Develop your business plan
Next, create a solid business plan. It must describe your services, target customers, and expansion objectives. The authorities will examine when issuing licenses.
Step 4: Raise capital
Now, organise the startup capital that is needed. Most finance firms require a minimum of AED 1 million. Investment companies can require up to AED 25 million.
Step 5: Obtain regulatory authority approvals
Next, submit an application to the appropriate authority—DFSA in the case of DIFC or the Central Bank in the case of the mainland. Provide all documents and wait for their approval.
Step 6: Apply for the license
Once you get the approval, apply for your financial company license. This legal document authorises you to operate your finance business in the UAE.
Step 7: Open a corporate bank account
Lastly, open a business bank account. This account is required to hold funds and conduct transactions professionally. It also generates client trust.
Register Financial Business in Dubai
To start a financial business in Dubai, you first have to select your company structure. Then, make your application with all documents to the chosen authority.
The procedure involves:
- Name reservation
- Preparation of MoA
- Submission of documents
- Approval from the regulator
- Issue of a license
You can avail yourself of assistance from business setup experts in Dubai.
Cost of Setting Up a Financial Services Company in Dubai
The setup cost of a financial services company in Dubai varies based on different factors:
- Type of license
- Location of the office
- Regulatory approvals
- Consultancy charges
The average cost of starting up is between AED 100,000 and AED 300,000. Additional charges might be levied for compliance, audit, and legal services.
Benefits of Starting a Financial Services Business
There are numerous advantages:
- Foreign ownership of 100% (in DIFC and certain free zones)
- Tax-exempt income
- Strategic location
- Repatriation of capital
- Access to international and GCC clients
Moreover, Dubai has a state-of-the-art infrastructure and a robust legal system. Compliance for financial services UAE is stable and transparent.
Top Financial Companies in Dubai
There are numerous trusted financial institutions in Dubai. They provide loans, investment advice, and more. Let’s first examine the best-known names in the finance sector.
1. Aafaq Islamic Finance
This company specialises in Shariah-compliant financial products. Also, it provides innovative payment solutions using advanced digital platforms.
2. Al Ain Finance
It assists SMEs with instant loans. Additionally, it makes it easy with low documents and speedy approvals.
3. Deem Finance
Deem provides personal loans and credit cards. Besides, it has easy-to-use services with rewards and cashback promotions.
4. Finance House
It provides loans, investments, and payment solutions. Moreover, it assists consumers and businesses with quick service.
5. Lombard Odier
It’s a Swiss private bank providing services of wealth management. In addition, it specialises in growing assets for clients in the UAE.
6. Reem Finance
Reem finances real estate and personal property. Finally, it’s famous for quick approvals and simple loan schemes.
They offer services such as personal loans, real estate finance, wealth management, and SME assistance.
Requirements for Finance Company Setup in Dubai
To begin a financial services business in Dubai, you are required to:
- Possess a sound business plan
- Comply with capital requirement (AED 1M or more)
- Have a financial consultant appointed
- Implement an internal audit system
- Employ experienced professionals
Offshore companies should demonstrate 5 years of business in their home country.
Launch Financial Firm in DIFC or Mainland
Financial firms can be launched in DIFC or mainland Dubai. DIFC is ideal for international visibility. It provides:
- Independent legal structure
- Foreign ownership is permitted fully
- No currency restrictions
The mainland provides broader access to the UAE market. Select based on your budget and target market. Investment firm setup in Dubai are increasing in both zones.
Get Help from Us
Need assistance in beginning your finance company? Our business setup consultants in Dubai are available to assist you at each stage. To start with, we keep things easy by taking care of all the paperwork for you. Next, we take you through obtaining your financial consultancy license Dubai without delay. We also assist you in securing office space in the appropriate location for your business. In the event that you require PRO services, we take care of all government documentation and approvals efficiently.
We then aid in the opening of a bank account to ensure that you can run your operations effortlessly. Lastly, our legal consultants ensure your company complies with all UAE regulations. With us, you have everything under one roof. We are your single point of contact for hassle-free business setup in Dubai.
FAQs
Q1: What is the cost to open a finance company in the UAE?
It varies between AED 100,000 and 300,000, also depending on your company type and location.
Q2: Do I require a local sponsor?
Yes, mainland Dubai requires one. But for DIFC, full ownership is possible without a local sponsor.
Q3: How long does the setup process take?
It takes around 4 to 6 weeks. Begin by ensuring your documents are complete and accurate.
Q4: Which license should I get for advisory?
You must obtain a financial advisory license. The DFSA or the UAE Central Bank usually grants it.
Q5: Is DIFC appropriate for finance companies?
Yes, DIFC is a prime option. Additionally, it provides excellent infrastructure and a liberal legal system.
Conclusion
It is an intelligent decision to establish a financial services business in Dubai. With proper assistance, you can tread Dubai financial regulations and win the day.
Let the best of the business setup professionals in Dubai guide you. We make company formation in Dubai easy and hassle-free.
Whether you wish to start a financial services firm in Dubai, opt for investment company setup in Dubai, or apply for an economic consultancy license in Dubai, the time is now.