Many of our clients seek our advice on the steps in obtaining an Investment Business License in UAE. Investment business in UAE is a highly prospective sector with an increasing demand for trusted investment advisory providers.
Having an investment business license in UAE, the company can offer a host of financial and investment-related services. Many high-net-worth individuals and private businesses are on a constant lookout for investment companies that can offer them expert advice on financial management and channel their investors into streams that will earn a high return.
UAE has a favorable business infrastructure, e-Governance, and robust investment environment. It is one of the safest countries when it comes to financial fraud and financial risks. The banks in the region have robust systems to protect accounts from any unauthorized transactions.
Investment business in UAE is a prospective investment for entrepreneurs who are experts in the financial sector. There is an immense opportunity in UAE for investment-related businesses. UAE is transforming itself into a financial hub of the world.
The Central Bank of UAE and other financial regulatory authorities are ensuring the transactions conducted in the country are fully compliant with OECD and other international financial regulations, standards, and guidelines.
Investment Business License in UAE – Related Business Activities
There are a host of investment-related business activities in the UAE Free Zones and Mainland. Under the broad category of investments, there are various specific business activities and segments.
Following is the list of the most common business activities under the investment license in the UAE.
- Commercial Activities – Management, hiring top-level financial professionals, financial investment in business projects and assets
- Securities Exchanges – Financial instruments, investments, and client management
- Monetary Products – Providing trade financing, issuing credit cards and other financial products
- Service Provider for Payments – Accepting and processing payments from third parties.
- Investment Consulting – Financial consultation for asset optimization, attracting investment for projects, etc.
- FinTech License– Use of advanced technology such as blockchain, crypto, artificial intelligence, etc.
- Insurance and Reinsurance – Insurance and reinsurance services for business establishments and individually managed assets.
- Financial Assets Management – Asset Management and monitoring of financial instruments of the company. Setting up of Special Purpose Vehicles / Holding companies for managing the assets.
Investment Business License in UAE
UAE is the best place for financial investments as there is no personal tax on the income generated in the country. Also, the financial sector is robust with a mix of international and UAE-based banking service providers, stock exchanges, and more.
There is the Abu Dhabi Stock Exchange, Dubai Financial Market, Nasdaq Dubai, and a host of financial service providers, payment gateways, and asset management companies in the region.
Hence, there is immense demand for a financial services company in Dubai. Many investors choose to invest in various assets ranging from financial markets, real estate, companies, manufacturing plants, technology, product development, and more.
So, an investment business license is an essential legal document for conducting any sort of financial activity on behalf of the company. A financial investment company will advise investors on the prospective investments to make for generating a significant return.
Financial Advisors on individual and corporate levels are in high demand in the UAE market. Having an investment business license is essential to provide financial advisory services. It will help in also advising for corporate restructuring, selling off assets, managing assets, asset valuation, and more.
How to get an Investment Business License in UAE?
To take an investment license in UAE the investor has two options either register the company in Mainland of UAE or incorporate the company in any of the Free Trade Zones of UAE.
It is best advisable to obtain an investment license in UAE from the Free Zones. There are many advantages for the investor in setting up their company in the Free Zones.
Mainly the 100% foreign ownership and no personal income tax is the key highlights of the Free Zone. Also, the Corporate Tax applicability in Free Zone is subject to certain conditions.
Furthermore, the ease of setting up a company, obtaining the pre-approval for investment-related business activities, getting a cost-effective office space, etc., are a few add-ons to obtaining an Investment License in UAE from the Free Trade Zones.
The process of obtaining the Investment License in UAE Free Zones is similar to any other business license. However, financial-related business activities will require obtaining pre-approval from the specific Free Zone authorities.
For the pre-approval, the shareholder’s profile is required. The shareholder should have a similar educational qualification or job experience in the field of finance and investment. Otherwise, they must provide an undertaking stating they will hire a Director/Manager with the qualification within 6 months of setting up a company.
AURION will support you in obtaining the pre-approval as well at every step and ensure you obtain the Investment License in UAE without any hassles.
Which Free Zones to Choose for the Investment Business License in UAE?
There are a few Free Zones that will be the best fit for obtaining the financial investment license in UAE. The budget-friendly option will be the DSO-IFZA in Dubai. The Dubai Airport Free Zone is a premium Free Zone that is the right fit for a financial investment company.
Followed by that there is the Dubai Multi Commodities Center DMCCÂ Free Zone in Dubai offering a host of financial investment-related activities for investors. The Meydan Free Zone in Dubai is another Free Trade Zone that provides investment licenses in UAE for entrepreneurs and startups at affordable rates.
Additionally, the Free Zones in Sharjah which is the Sharjah Airport International Free Zone, Sharjah Media City, and Sharjah Publishing City provide company packages at very minimal rates. However, there is a pre-approval required for investment-related business activities in the Sharjah-based Free Zones.
Additionally, the strategic locations of the Free Zones, the proximity to Airports, fully-furnished office space availability, easy company setup, etc., make the Free Zone the right choice for obtaining a financial investment license in UAE.
To know more about setting up a financial services company and obtaining an investment license in UAE, talk to our expert team of Business Consultants right away!
