A favorable legislation, support of state and the purchasing power of the population contributed to a prosperous investment and financial environment. With regard to financial risks, the United Arab Emirates has been ranked as one of the secure countries in the world.

If you have a license and tax resident status, you can issue loans, manage, advise and collect commissions and fees in the management of securities and finances in the UAE and in foreign counties without having to pay taxes or disclose tax information. In this blog, let’s discuss the process of obtaining an investment business license in the UAE.

What is Investment company?

An investment company is an entity that engaged in the business of investing the stakeholder’s pooled capital in financial securities. Investment companies are business entities, whether owned publicly or privately, that sell, manage, and provide funds to the public. 

Generally, to invest is to distribute money in anticipation of some benefit in the future – for example, investment in durable goods, real estate from the service sector, manufacturing plants, product development and research and development. However, this article focuses specifically on investments in financial assets.

In finance, the profit from an investment is called a return. The income may consist of profit from the sale of an investment or property, or investment income including dividends, rental income, etc., or a combo of both. Expected economic return is the appropriately discounted value of future returns. Investors usually expect higher profit/return from riskier investments. When we invest with low risk, the return is also generally low. Investors, especially beginners, are often advised to acquire a specific strategy of investment and expand their portfolio.

Financial Activities Available in UAE for Licensing

Your choice of license type will affect your strategy of business development, so make a conscious decision and move forward with caution. You can get help from our beyond view business setup company to understand the concerns and details regarding investment and financial services license.

1: Commercial Activity

Placing and Obtaining funds in business projects, management and assets.

2: Payment service provider

A license for PSPs is needed for actions like processing and receiving third parties’ payments.

3: Products of Monetary 

Providing direct and trade financing, with that also issuing of credit cards and Monetary products.

4: Operations with High securities

Financial investment, instruments and client operations which are intermediary in financial sector.

5: Consultation services for Investment

Offering a bunch of services regarding to optimizing assets, receiving and placing investments.

6: Licenses of FinTech 

The term “fintech” defines financial services that use front line technologies such as AI, blockchain, and big data.

7: Asset and trust management

All the financial tools and assets of the company are purchased with the money of investors.

8: Insurance and reinsurance

All Services and Products related to insurance and reinsurance can be auspicious to both businesses and individuals. And Investment Funds are collected from private individuals as well as legal entities for joint investment.

Jurisdiction of UAE for Investments and Financial companies’ incorporation

1. Mainland

The departments of economic development of all emirates act as registrars. Some may require additional requirements and confirmations from local financial regulators license.

2. DIFC

The Dubai International Financial Center has within its structure a separate financial regulator (DFSA), an authority of registration and its own Court of Arbitration. A number of licenses may be subject to additional confirmations and requirements from internal financial regulator.

3. Global Market of Abu Dhabi

Global market of Abu Dhabi has in its structure a separate financial regulator (FSRA), an authority of registration and its own Court of Arbitration. A number of licenses may be subject to additional conditions and confirmations from internal financial regulator.

4. A Number of Northern Emirates Free Trade Zones

These have fewer licensing conditions and confirmations, and no any kind of internal financial regulators. They don’t save additional requirements for most trading activities, but running on the local market is banned. Beyond view business setup company provides a range of services excepts these also.

Benefits of establishing an investment business in the free zone

• Company’s full foreign ownership
• Full exile of profits
• Strategically located
• Global Network
• Diversity of commercial activities
• Time efficient
• Registration Convenient and No currency restrictions

Beyond view Business Setup Services

If you are considering Investment Company Setup in Dubai, the here are some of our services:

• Prepare your business model

We identify the ideal course of strategies to achieve your goals, the amazing license and the most suitable type of entity.

• Systematize your company

We work with the relevant authorities closely, which permit us to provide services quickly.

• Business address with high profile 

Our customers can rent an office place from beyond view Business Center to complete the necessary licensing processes.

• Setting up bank accounts

We are familiar with bank compliance procedures of UAE and offer assistance in completing KYC.

• Outsourcing of business operations

We offer comprehensive business support along with integrated legal, tax, accounting and administrative services.

UAE government regulators requirements

Certain investment business licenses must be approved by the Central Bank of the Emirates for business activities and the Financial & Commodity Markets Management Committee (SCA). Let’s discuss further Costs and requirements of this process:

Control of the Nation

There are various state requirements depending on the sort of activity and administration of incorporation. The regulatory bodies which are main includes: UAE central Bank, the Police, and the Commodity and Financial Markets Management Committee.

Bank guarantee

The state established requirements for a bank guarantee for the fulfillment of financial obligations to third parties. The amount of the guarantee depends on the type of financial or investment activity. Sometimes the required deposit can be quite significant.

Qualified staff

There are conditions regarding levels of staffing and skills that include analysts, specialists in the internal control of financial transactions, financial managers, as well as a CEO with an appropriate level of education or qualification.

Authorized Capital

In most cases, there are requirements regarding the amount of authorized capital, the minimum amount of which varies from $41,000 to $1.4 million. In rare cases, for complicate licenses, the required authorized capital can be as high as US$8-14 million or more.

Internal Control

Regulators are required to ensure the implementation of a system of internal control and strict compliance with the law in order to minimize risks. They are also looking for mechanisms and processes to ensure compliance with anti-money laundering legislation.

Furnished offices

Financial and investment businesses are subject to a number of requirements regarding to an onsite office furnished in accordance with regulatory standards and international means. It must also be suitable for its confirmation as a business decision center according to the requirements of the Economic Substance.

Conclusion

Due to enormous legal requirements, obtaining a finance and Investment Business License in Dubai mainland can be tricky. However, our experts at beyond view Business Setup will simplify the process for you with their relevant expertise. We understand that each client’s requirements are unique. We approach each business individually to tailor the right services to meet their priorities. 

We offer comprehensive support for acquired companies and their shareholders: from licensing and keeping bank accounts to obtaining the country’s tax resident status. With the help of our qualified team of consultants, we provide faster and smoother business formation services in the UAE Free Zone and onshore. Also, the investment business license in the UAE that are fast, simple and require little paperwork. Get in touch with our professionals to know more about the process and assistance. We’d love to assist!