It is never too late to set out and venture forth in the land of countless opportunities. Start an investment company in Dubai to reach new heights of success. Make the most out of what the futuristic city has to offer.
In this article, we discuss the advantages there are to start investment company in Dubai. We also go over how to open investment company in Dubai.
Benefits of Starting an Investment Company in Dubai
An investment company in Dubai offers several advantages. Business owners recognize the importance of a well-thought and clear strategy above all. And Dubai has a strategic location. Situated at the crossroads of Asia, Europe, and Africa, it provides a better access to international market.
A business of course thrives on a great economy. UAE has a strong and stable economy promising businesses of growth. Dubai is friendly to investors and businesses, making it a perfect location for up-and-coming entrepreneurs. UAE is a magnet to highly skilled individuals so when you start investment company in Dubai, you will have access to a great talent pool.
Licensing and Regulatory Requirements for Investment Company
Dubai has an organized way of running things. The process of how to open investment company in Dubai involves completing the requirements for license. it also involves complying to the local regulations. An investment company in Dubai has the following requirements.
You are going to need an initial capital of AED one million. You will need a local UAE national to be your partner. Relevant government authority will have to provide you approval to start investment company in Dubai
Obtaining Initial Approval
You will have to get the initial approval. For this, you will follow the required procedure with relevant government authority for your business.
Choosing the Right License Type
Commercial License
It authorizes businesses so they can perform trading, distribution and commercial activities in Emirates. Commercial license is for companies who buy and sell goods or offer commercial services. There are different types of commercial licenses depending upon the nature of your business activity.
General trading license allows a wide range of trading activities. Specific trading license permits trading in specific products or commodities. Retail license is for businesses selling products directly to consumers. Wholesale license is for businesses who provide bulk sales to retailers.
Professional License
This type of license is for those offering professional services. It permits individuals or companies to offer specific professional services within UAE. There is an extensive range when it comes to professional licenses.
Professional license is obtained by those across various sectors. This includes consultancy services of management, finance, IT and legal. Beauty and wellness services provided by salons, spas and beauty centers. Education offered by training institutions. It encompasses IT services like software development and web design. Professionals in the sector of medical and healthcare also need this license. This includes doctors, dentists, nurses, clinics, pharmacies. Civil, electrical, architectural and mechanical firms in engineering and architecture sector require a professional license too.
Industrial License
Authorizing a company to convert raw materials into finished or semi-finished products is industrial license. The nature of your manufacturing activity affects the type of industrial license you will be getting.
Assembly license is for companies who assemble components into finished products. Businesses with a focus on packaging and labeling products apply for a packaging license. Manufacturing license is for companies involved in full-scale production of goods.
Compliance with Regulatory Bodies
The process of starting an investment company in Dubai calls for adhering to the regulations set by the authorities. Depending on the type of your business and license, the relevant regulatory bodies might differ. Still, it is an investment company in Dubai you are establishing. So a few of these will remain constant.
Dubai Financial Services Authority (DFSA)
DFSA is an independent regulator for financial services conducted in DIFC. They oversee banking and credit services, asset management, collective investment funds and Islamic finance. They also manage securities, insurance, custody and trust services and commodities futures trading. They are also responsible for supervising anti-money laundering and counter-terror financing. If you are opening your investment company in Dubai, you will have to comply with regulations set forth by DFSA.
Securities and Commodities Authority (SCA)
SCA protects the rights of investors. It regulates the markets operating in UAE except free zones. It also builds confidence of investors in the financial market of the country. Running an investment company in Dubai means you have to follow their terms too.
Business Registration Process for Investment Company
There are certain steps to follow when you are completing the registration process for investment company in Dubai. The process of how to open investment company in Dubai free zone calls for selecting the one matching your needs. There’s Dubai International Financial Centre offering several financial services. Dubai Multi Commodities Centre cater to investment firms. Dubai Silicon Oasis is perfect for companies with emphasis on technology investments.
Step-by-Step Registration Procedure
Choose a jurisdiction that suits the needs of your company. Register your company with the relevant government authorities. Submit an application. Verify your identity and residency. Pay the application fee. Get your license by providing the documents.
Required Documents
Documents differ between the mainland and free zones. Establishing your investment company in Dubai mainland requires receipt of initial approval. copies of all previously submitted documents and copy of attested lease contracts. MoA and approvals from government entities are also included in this. For free zones, you will need:
- Completed registration application form
- Passport-size photos of Manager/Director
- Capital information
- Attested and notarized Board Resolution appointing Manager or Director, power of attorney given to them, Memorandum and Articles of Association.
- Specimen signature of Manager/Director notarized and attested
Timelines and Costs Involved
The timeline for the entire procedure can get quite long. There are different reasons for this. Hedge funds are more complex and demand more time. Your fund size and investment strategy will play a huge part in this too. Planning and structuring your investment strategy, choosing the legal structure and developing the business plans takes time. Regulatory compliance and licensing and operational setup require their own share of time. Expediting this procedure is possible with the help of an experienced team specializing in these services.
We can’t point to a specific number. The cost involved will vary with your approach. License fee, service provider fee, and other expenses will factor in to the total cost.
Conclusion
Setting up an investment company in Dubai is the first step towards your success. Complete the requirements and follow the procedure. Get necessary licenses and comply to the local laws of UAE. And you are all set to go! The process can become even more easier if you have a company setup consultant behind your back. Connect Business Center assists you with the procedure of how to open investment company in Dubai. Contact us for our services.
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