How to start an investment company in Dubai?

How to start an investment company in Dubai?

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The UAE is one of the leading international financial hubs attracting investors and companies from all around the world. Dubai, Abu Dhabi, and Sharjah are the major proponents of the economic growth in the UAE. So, you can start an investment company in Dubai to play your part in this transformation of the UAE.

It is crucial to understand the corporate legal system of the United Arab Emirates. Moreover, you need to fully comprehend the requirements for the business licensing in the UAE. A thorough awareness of the UAE’s market trends is desirable in this regard as well.

Process to establish an investment company in Dubai

This is the essential step-by-step procedure for creating a financial investment company in Dubai.

  • Select corporate structure
  • Choose trade name
  • Obtain initial approval
  • Apply for license
  • Secure office space
  • Register for business banking

Now, we briefly look upon these steps of the registration process of a financial investment company in Dubai.

Select corporate structure

Come up with a suitable business structure for your investment company in Dubai. What do you prefer from a free zone entity, limited liability company (LLC), or an offshore company? Accordingly, make the decisions after the selection of the legal structure of your firm.

Choose trade name

Pick a unique trade name that follows the UAE’s corporate naming regulations. Furthermore, ensure that it aligns with your brand. This way, it can better resonate with your clientele as well.

Obtain initial approval

Take initial approval form the Department of Economic Development (DED). Otherwise, you can obtain a no objection certificate (NOC) from the chosen free zone authority. This preliminary NOC enables you to proceed towards the next steps.

Apply for license

It is one the most important steps in starting your own investment company in Dubai. You can apply to the Securities and Commodities Authority (SCA) for the license by submitting relevant documents. Otherwise, you can submit application to the Dubai Financial Services Authority (DFSA), regulator of the Dubai Financial Services Authority (DIFC).

Secure office space

You have to rent/lease a physical office premises that fulfills the minimum requirements for running business operations. Likewise, you need an appropriate space for meeting the customers. Thus, wisely choose your office location to efficiently conduct all official activities.

Register for business banking

You need to have a corporate back account for smoothly making financial transactions.

Necessary documents to open investment business in Dubai

You need to file the following documents for registering an investment firm in Dubai.

  • Passport copies of business owners, and shareholders
  • Copy of valid UAE visa of all stakeholders
  • Business plan highlighting investment strategies
  • Certificate for trade name reservation
  • NOC from the DED or the free zone authority
  • Feasibility study report
  • Office lease/rent agreement
  • Financial statements of the company

Different types of investment companies in Dubai

These are some leading kinds of investment companies in Dubai.

  • Venture capital firms: The venture capital companies provide financial support to early-stage enterprises with significant development potential. Mainly, they focus on investing in innovative businesses and startups. They frequently invest in stocks and help business owners grow their companies.
  • Private investment companies: The private investment firms specialize in managing the corporate and wealth portfolios of institutional and high-net-worth clients. To increase and protect assets, they offer specialized investment planning, financial strategies, and other risk management services.
  • Publicly traded investment firms: The publicly traded investment firms listing on stock markets raise money by selling the shares of the investors. They invest in a variety of financial asset classifications, such as equities, bonds, and commodities. However, changes in regulatory policies and market swings impact their revenues.
  • Real estate investment trusts: These realty sector investment firms combine the money of several investors to buy and oversee residential and commercial properties. Real estate investment trusts (REITs) empower the investors to enter the realty market without actually owning any properties. Frequently, the REITs generate the consistent income via rental returns and distribute it to the investors after keeping the margins.
  • Hedge funds: The hedge funds provide investors with large returns by using a variety of investment strategies and financial instruments. They are well know for optimizing the financial profits, while reducing the investment risks. For this purpose, they utilize many strategies including leverage, short-selling, and derivatives trading.

Key business activities of investment firms in Dubai

These are some major business activities of the investment firms in Dubai, UAE.

  • Corporate investment in Dubai: You can provide advisory services to different businesses regarding financial sponsorship and investment.
  • Wealth management: One of the premier business activity that an investment firm in Dubai can perform is wealth management. People having high-net-worth need help with managing their assets. So, you can engage in managing the investment portfolios and assets.
  • Real estate investment: You can provide capital for business ventures and real estate developments, which have vast scope in Dubai.
  • Venture capital and private equity: Dubai government goes out of the way to support entrepreneurship and startups. So, it is highly profitable to invest in the startup companies and growing enterprises. With a greater scope across the UAE, the returns on VC funding are much higher.
  • Investment funds in Dubai: You can set up and manage hedge funds, mutual funds and other investment vehicles. Also, you can engage in managing the securities portfolios. The sky is the limit with too many investing opportunities throughout the UAE.

Ideal locations to form an investment business in Dubai

These are some of the perfect places for starting a new investment company in Dubai.

  • Dubai Multi Commodities Centre (DMCC): If you want to focus on investment firms and commodity trading, then DMCC is your best option.
  • Jebel Ali Free Zone (JAFZA): For international investment companies and offshore financial firms in Dubai, JAFZA is among the best options.
  • Dubai International Financial Centre (DIFC): As a leading economic center, DIFC has the DFSA regulatory framework in alignment with the universal standards.
  • Abu Dhabi Global Market (ADGM): OK, this one is not in Dubai for sure. this strong financial hub in Abu Dhabi for regulated investment activities deserves a mention here. ADGM is so serious, that it has got its own Financial Services Regulatory Authority (FSRA).

Considerations while beginning investment firm in Dubai

Here are some factors that you need to take care of when starting an investment business in Dubai.

  • While launching any investment company in Dubai, it is really important to have awareness of the UAE’s financial market trends.
  • Make sure to adhere to the guidelines of Dubai Financial Services Authority (DFSA) or Securities and Commodities Authority (SCA).
  • Ensure that you meet minimum capital requirements as per financial investment licensing regulations.
  • Dubai does offer you tax advantages, but it is necessary to remain compliant with the international tax regulations.
  • Keep the confidence of clients by protecting their investments, through the implementation of the risk management measures.

Author Bio

Published By Salman Saleem

Senior SEO Expert At KWS ME

The user-centric business setup and support focused content of KWS Middle East is driven by SEO professional Salman Saleem.

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