How to Obtain Financial consultancy license in Dubai

Dubai is one of the top-leading trade and financial hubs of the Middle East. In addition, the strategic location between the west and east makes it an ideal choice for financial consultancy businesses to carry out their activities in the region. This is why we offer you a cost-effective and hassle-free way of getting a financial consultancy license in Dubai.

In this article, we will make sure you understand the entire process of obtaining this license. Investors can conduct several activities under the financial consultant license in the UAE. Some of the activities are debt management, financial advisory services, budgeting for clients, financial planning, and more. Let us observe:

What is a Financial Advisor?

Financial advisors work with companies and individuals to achieve their short and long-term financial objectives. In addition, they assess clients’ financial necessities to assist them and make decisions about tax laws, insurance, mortgages, investments, college savings, and retirement plans.

Similarly, the solutions provided by financial advisors vary based on the type of firm, but usually, they determine your financial situation including your debts, expenses, and assets. After that, they work on identifying areas for improvement.

Further, they will ask about you and your objectives and create an assistance plan for you to reach them. That is to say, this means ensuring you have an adequate emergency fund, calculating how much you will save for retirement, helping you refinance or pay off debt, and offering tax-planning suggestions.

Likewise, they allow you to save massive amounts of money, either by providing complete investment management or by recommending specific investment opportunities.

In some cases, you can choose which services you need or want to obtain based on the type you choose. For instance, a traditional advisor may offer hands-on, personalized guidance for an ongoing fee. However, a Robo-advisor is a less expensive, automated management solution, which is best for individuals wishing to obtain assistance managing their investments.

They may use their financial expertise to:

• Teach clients and answer inquiries about potential risks and investment opportunities.
• Meet with clients to talk about their financial objectives.
• Make recommendations on behalf of their clients.
• Monitor their clients’ accounts to make changes in their investment policy.
• Financial advisors also work with large organizations or by themselves to meet their clients’ needs. In addition, some of them provide tax advice or sell insurance.

What does a Financial Consultant Do?

As defined by the UAE regulations, a financial consultancy license in Dubai is for individuals and businesses who advise and recommend based on financial and economic research; analysis, and studies related to viability and determining the current or future values of securities.

In addition, they provide feasibility on commodity contracts and companies provided to clients in any means of communication and communication.

Similarly, financial analysis means the systematic processing of information related to the performance and position of organizations in the past, present, and future forecasts of the results of their business. Further, their securities, commodities, business, trade volumes, and price trends for the purpose of getting information to decide at the time of the financial consultation.

The established fee for capital in UAE companies formed to carry out financial consultation and obtain the financial consultancy license in Dubai is AED 1.000.000. However, the legal entities allowed to apply are:

• A judicial entity established in the UAE as one of the structures set in Federal Law No. 8 of 1984 related to commercial companies. In addition, a natural or juristic individual being UAE or GCC national must hold 51% of the shared capital. It is subject to the principle of reciprocal treatment.
• A branch of a foreign organization licensed under similar regulations in their own country that conduct business in the financial consultation and financial analysis. This company must have at least 5 years of experience and meet certain criteria.

What is the License Fee Structure?

There is no chance of putting a fixed amount for obtaining a financial consultancy license in Dubai and starting your consulting business without knowing the type of company involved. That is to say, the cost of this type of license varies from organization to organization.

On the other hand, it is based on various factors such as if you want to set up as a freelancer or start a company in the mainland area or in a free zone; whether you will employ workers, and whether you will make use of office space.

• However, an LLC company in Dubai with a financial consultant license without office space and visa may cost up to AED 25,000.
• On the other hand, a free zone company with a financial consultant license without office space and visa start from AED 12,000.

At Connect Free Zone, one of our effective approaches to assist you in establishing your activities in the UAE is to set up a free zone company with a license package involving your visa application and the use of a business entity and a coworking space.

Similarly, the DIFC region is a good free zone destination for establishing your financial consultancy business in the UAE. This is the hub for banks, financial activities, and large fund entities. Also, there are many free zones in the UAE offering financial consultancy licenses.

Consultancy License in Dubai: What Are the Requirements?

The UAE government mandates some requirements for individuals or entities looking to obtain a financial consultancy license in Dubai. They must provide the following:

• Share capital: The business must keep the capital share of AED 1 million.
• Shareholding: A UAE or GCC national must hold at least 51% of the shareholding area.

If it is an organization, it must have competent technical and administrative staff to perform the financial consultation business and financial analysis. Hence, they must be certified SCA consultants.

Also, the business plan is a crucial component of the process that you must draft in both languages (Arabic and English). However, let us observe the most important key factors:

• The business plan must keep the prospective competitors as well as current competitors.
• You must include the competition level in the business plans.
• The business plan must include the expected market share of the applicant for the following 3 years and the market share of competitors.
• In addition, the plan must include the analysis of demand and supply gaps related to the provided solutions.
• The business plan must also outline the target clients.

In our agency, we excel at preparing plans for businesses for SCA and each type of organization establishment.

Under this license, What Activities are Allowed?

Certainly, the investor can perform various activities under this license to their clients.

• They can arrange feasibility studies as well as price trends, market research, and analysis as well as future forecasts.
• The organizations under this type of license can conduct consulting on commodities, and security as well as related contracts.
• Investment portfolio component modeling is also allowed under this license.
• Companies looking to obtain a financial consultancy license in Dubai carry out financial statements as well as performance analyses.
• The companies are allowed to offer investment consulting services.
• Volume, price analysis and decision-making on financial investments, and more.

In addition, the financial consultancy license owner provides comprehensive support to personal investors and companies with high-net-worth in diversifying their assets. They also offer financial planning and advisory services; ensuring that the business grows its finances effectively.

How to Apply for a Financial Consultancy License in Dubai?

The financial consultancy license in the UAE is obtained from onshore jurisdictions such as Mainland and Free Zone. In addition, it follows a certain process with some variations in the steps in the different business jurisdictions. However, the general application process includes the following:

• The first step to obtaining a financial consultancy license in the UAE is to choose your business activity.
• Get the trade name approval for your business. But you must abide by certain name specifications provided by the UAE government.
• Choose a suitable business structure such as a Limited Liability Company (LLC), a Branch office of a foreign organization, or a sole proprietorship.
• Prepare the application form for the company registration in the Free Zone or Mainland.
• Provide the additional documents of the involved shareholders such as passport copies and photographs.
• Obtain the pre-approvals from the Security Commodity Authority (SCA).
• Submit the required fee, documentation, and required fee to the government entity in charge in order to obtain the financial consultancy license in Dubai.
• Receive the associated organization documents such as shareholder agreement, Memorandum of Association (MoA), tenancy contract (for your office space), etc.
• Proceed to apply for the UAE residence visa for investors.
• Open a corporate bank account for your business.

What is the Scope of Business For Companies in this Area?

Financial consulting in Dubai has massive opportunities in this thriving and growing market. Further, the stable government, robust banking system, and pro-enterprise policies make this country an ideal destination for investors and companies to establish their operations.

There are several small and large-scale fund companies and houses established in Dubai. The financial growth and the technological improvements are making the country and its businesses improve like never before.

Therefore, the financial ecosystem of the UAE is growing to an outstanding level with digital banking, cryptocurrencies, blockchain, and more. These are some of the reasons why obtaining this license and starting a consultancy business in Dubai is one of the best decisions you can make.

Obtaining a Financial Consultancy License in Dubai?

One of our main objectives is to provide you with the most innovative solutions so you can establish your business in this beautiful country. In Connect FZ, we offer you the best pricing, packages, and discounts so you can start your financial consulting business.

Further, we also provide you with sponsorship solutions so you can easily begin your economic activities or have business setup in Mainland Dubai.

On the other hand, we understand that opening a company in a new market is a complex task; especially if you are on your own. That is why we offer you our experience and expertise to help you set up your organization in a hassle-free way.

With us, you will access the best locations for your financial consulting business; while ensuring you obtain all the benefits the different jurisdictions have. In the same vein, we also compare free zones’ regulations, rules, and prices regarding your organization’s PRO solutions.

Would you like to receive assistance to obtain a financial consulting business license in Dubai and the UAE? If you want to take your business to another level you can reach us at +97143316688. Or you can write us an email at contact@connectfz.com.