Financial Services License in Dubai: Step-by-Step Setup, Cost & Regulatory Overview

It is best to start a financial services business in Dubai. The city is experiencing rapid development, and more individuals and companies are relocating their operations there. To begin with, Dubai provides good regulations that guard your business. Secondly, it has excellent tax incentives that enable you to save money. Thirdly, it’s simple to reach customers from everywhere in the world. 

Whether you intend to start a bank, a finance advisory firm, or a fintech firm, Dubai provides you with plenty of good choices. So, if you are considering starting a financial services business in Dubai, it is a good time to start now.

What are Financial Services?

Financial services are activities that assist individuals and companies in dealing with their money. These consist of banking, insurance, investment, and financial advice. For instance, banks assist you in saving money and taking loans. Insurance companies safeguard you from large losses, such as accidents or illnesses. 

The services assist you in planning for the future. Secondly, they safeguard your savings. Thirdly, they help you earn additional money. Fourthly, they offer you peace of mind. In short, financial services make it easier to handle money and reach your personal or business goals.

About Financial Services Business in Dubai

Dubai is a top place for starting a financial services business. The city is known for strong rules, safe systems, and a friendly setup for new companies. First, Dubai offers many options to grow your business in the local and global markets. 

Financial companies prefer Dubai because it provides them with security, profit, and long-term expansion. So, if you’re looking to establish a financial services company in Dubai, you’re making a prudent and secure decision.

Types of Financial Companies in Dubai

There are several types of financial companies to start in Dubai. Each one has a different function. First, select the appropriate type. Then, take the legal step to kick-start your venture.

1. Banks

Provide plain and safe services such as savings accounts, loans, and money transfers for all clients.

2. Investment Companies

Assist customers in making their money grow with stocks, mutual funds, and long-term portfolio management.

3. Insurance Companies

Offer plans for covering individuals, property, and businesses against various kinds of risks.

4. Financial Advisory Companies

Assist clients in making intelligent money decisions regarding taxes, savings, and investment planning.

5. FinTech Startups

Employ intelligent technology to provide quick, new-age financial services such as apps and online payment.

6. Wealth Management Firms

Help affluent clients manage large sums of money, future planning, and individual investment schemes.

Financial Company License in Dubai

In order to run your business legally, you need to obtain a financial company license in Dubai. This license is granted by either the Central Bank of the UAE (for some mainland operations) or the Dubai Financial Services Authority (DFSA) if you are establishing in DIFC. 

One, select the correct authority according to your business activity. Two, note that the category of license, such as financial consultancy, investment, or lending, will vary according to the services provided. 

Three, ensure your business complies with all Dubai financial regulations before application. Obtaining the proper license is the initial process of establishing a reputable and lawful financial services company in Dubai.

Documents Required for a Financial Services License in Dubai

These are some of the primary documents that should be compiled to apply for a financial services license in Dubai:

• Passport copies: All of the shareholders, directors, and signatories.
• Business plan: A comprehensive outline of what your financial services will be, what you want to achieve, and who you are going to sell them to.
• Proof of address: Lease agreement of office or tenancy contract in Dubai.
• Clean financial record: A certificate or a letter to show there are no crimes against money or blacklisting.
• Experience certificates: Papers that will show your experience level in the field of finance, banking, or other similar services.
• No Objection Certificate (NOC): In case you are already in the UAE working, then get a NOC addressed by your sponsor.
• Board resolution: In the case of using an established company, the board decision will be included to establish the new business.

Completed and signed application form from the concerned authority (e.g., DFSA or Central Bank).

How to Open a Finance Company in UAE

It is a good idea to start a finance company in the UAE. The procedure is easy if you do it the right way. First, plan your company. Then, take these steps to start smoothly.

Step 1. Select your business type

Decide on starting a bank, advisory firm, or investment company. Your selection impacts licensing.

Step 2. Get preliminary approval

Get initial approval from the appropriate authority. It indicates your business concept is approved.

Step 3. Choose location (mainland or free zone)

Choose where to operate; the mainland provides local access, and free zones offer tax advantages.

Step 4. Submission of documents 

Once it is done, make all the required papers, such as a copy of passports and business plan, and NOC letters, and submit them.

Step 5. Pay license and registration fees 

Pay all the fees required in terms of your trade license and your company registration to proceed with the process.

Step 6. Open a bank account

Open a corporate account at a bank to conduct business, money, payments, and salary transactions securely.

Step 7. Start operations

Lastly, after being approved, start your business activities and abide by all regulations to remain compliant.

Register Financial Business in Dubai

To register, apply with the concerned authority, such as the DFSA or Dubai Economy. Then, reserve a trade name. Then, submit your application along with the required documents. Pay the charges, obtain the license, and you’re ready.

Cost of Setting Up a Financial Services Company in Dubai

The following are the key cost factors you will have to pay:

1. Trade License Fee 

Begins from AED 15,000 (approx.) based on the type of financial operation and licensing authority.

2. Company Registration 

Fee costs range from free zones to the mainland, from AED 5,000 to AED 25,000 (approx.).

3. Office Space Rent 

Free zones can provide a flexi-desk; mainland offices are higher based on location and size.

4. Legal and Documentation 

Fees comprise notarization, document translation, and processing of the application, typically AED 3,000 to AED 8,000 (approx.).

5. Initial Share Capital 

Required capital is (approx.) AED 1 million to AED 25 million based on business type.

6. Visa and Immigration fees

Such investor or employee visas can range between AED 3,000 and AED 7,000 for bringing in a single investor or worker, including the cost of health examinations and Emirates ID.

7. Charges for the services of PRO

To hire PRO services in Dubai, it would come up to AED 5,000 to AED 10,000 (approx.), but you will save a lot of time and stress.

8. Bank Account Opening

In certain banks, a corporate account needs a minimum balance that is AED 25,000 to AED 100,000 (approx.).

9. Regulatory Approval Charges

If going through the DFSA or Central Bank, anticipate further approval and audit-related fees.

10. Consultancy or Setup Support

Business setup in Dubai may involve charges to hire professional advisors, and this tends to be AED 5,000 to 15,000 (approx.).

Benefits of Starting a Financial Services Business

Opening a financial services business in Dubai has numerous strong advantages. The following are the best reasons why investors prefer Dubai:

1. 100% Foreign Ownership

You can wholly own your business without a local sponsor in free zones such as DIFC.

2. Zero Personal and Corporate Tax

All financial institutions operate under complete tax exemptions, allowing you to save and accumulate profits.

3. Complete Repatriation of Capital and Profits

Repatriate all your investments and earnings back to your home country with no limit.

4. Stable Business Climate 

Dubai has transparent laws, robust regulations, and rapidly developing economic sectors.

5. Access to World Markets 

Strategically positioned between East and West, Dubai brings you into contact with customers across the globe with ease.

6. Advanced Banking and Technology

The city accommodates fintech, digital banking, and quick money remitting for new-age services.

7. Compliance for Financial Services UAE

Stern but clear compliance regulations assist in securing customers and providing fair and safe operations to licensed companies.

Top Financial Companies are in Dubai

Some of the most reliable and prosperous financial institutions in Dubai are represented by some of the leading players in the industry. These organisations offer high-class services in banking, lending, insurance, and investment. Some of the top players are as follows:

1. Aafaq Islamic 

Finance provides Shariah-approved finance facilities, online payment solutions, and association with MasterCard.

2. Al Ain Finance

Expertise in quick SME financing with easy documentation and robust electronic wage transfer networks.

3. Amlak Finance 

Deals with real estate finance with easy payment schemes for residents as well as non-residents.

4. BNP Paribas Wealth Management 

Looks after high-net-worth individuals with tailored investment programs and private banking services.

5. Reem Finance

Acquainted with powerful business lending, high returns, and alliances in commercial and property finance.

Requirements for Finance Company Setup in Dubai

You would require a local sponsor if opening in the mainland. Would need to demonstrate capital (1 to 25 million AED). Would appoint a finance expert. Would establish internal audits. Foreign firms would require 5+ years of operating history. Obtaining a financial consultancy license Dubai would possibly involve a background and experience check.

Launch Financial Firm in DIFC or Mainland

DIFC financial business setup is best suited for global reach and 100% ownership. The mainland provides increased access to local customers and government tenders. Consider your audience, expenses, and DFSA license requirements prior to making the decision. Each zone has a different setup velocity, advantages, and license regulations for investment firm setup in Dubai.

PRO is Here to Help

Establishing a financial business in Dubai may seem perplexing at first. There are lots of steps, papers, and regulations to navigate. That’s why seeking assistance from a PRO services company in the UAE is an intelligent move. For one, they walk you through each process so that you won’t get lost. Second, they process all the documents for you, freeing up your time and energy. Third, they communicate with government agencies on your behalf to expedite the process.

Last but not least, they ensure your company is compliant with all the legal regulations. With PRO services in Dubai, establishing your company is easy. If you are new to Dubai or have no time, a PRO team will assist you in beginning your business setup in Dubai smoothly and without hassle.

FAQs

Q1: What does it cost to open a finance company in UAE?

Typically, the cost ranges between AED 50,000 and AED 200,000. The price, however, varies with business type and location.

Q2: Do I own 100% of the company?

Yes, you may outright own your company in a free zone such as DIFC. Additionally, no local partner is required there.

Q3: What license do I require?

You require a financial consultancy license or a DFSA license. But it also depends on your proposed business activity.

Q4: How long does it take to set up?

It usually takes 4 to 8 weeks. But if your documents are ready, it is quicker.

Q5: Do I require a local partner?

Yes, for mainland companies, you do. But in free zones such as DIFC, you do not.

Conclusion

It is an excellent idea to start a financial services business in Dubai. The market is expanding, and the regulations are straightforward. First, Dubai offers new companies clear-cut steps and robust backing. Second, you have numerous financial services, such as advisory, investment, or lending, to choose from. Third, you can establish it either in a free zone, such as the DIFC, or on the mainland. Both have distinct advantages. 

From obtaining your Dubai license for financial advisory to fulfilling the requirements of the DFSA license, everything becomes possible if the procedure is done properly.