You are currently viewing How to Start an Investment Company in Dubai?
  • Post published:May 23, 2024

The market for investment companies has been increasing in Dubai with the increase in other business sectors. If you are dreaming of starting a business in Dubai and are stuck with finalizing which sector to forward with, reach out to Damaar, one of the most renowned business setup services in Dubai for assistance. In the blog ‘How to Start an Investment Company in Dubai’, you will find the major steps involved in obtaining a license for starting an investment company in Dubai along with overall information on the three main free zones.

The team of experts at Damaar helps you in every step of starting your business in Dubai, whether it is an investment company or any other. Focus on your business when Damaar is here to assist you!

UAE: A Prime Location for Investment Companies

Dubai has been promoting investment companies as a major business as it provides a strategic location for the company since it is situated in a prime location of Europe, Asia, and Africa. This positioning gives businesses easy access to the limitless and growing consumer population. A flexible and stable UAE approach to economic development and diversification also creates favorable conditions for long-term growth and innovation. These attributes depict Dubai as a place with relatively simpler and better business policies that are attractive and supportive to investors without obstructive policies and bureaucracy. The world-class infrastructure, highly developed transportation and logistics capacities, as well as overall connectivity of the city make it highly efficient for global business activities as well.

In addition, Dubai draws global professionals with diverse and specialized skills, which contributes to the city’s vibrant entrepreneurial culture. In addition, the presence of economic free zones, for example, Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), provides specific benefits to investment companies, in particular, concerning taxes and administrative procedures. Such zones are designed to offer a particular type of environment optimal for achieving business success while minimizing the negative impact of regulation and administration. Hence, the UAE’s strategic location, hospitable economic environment, and first-class infrastructure attract investment companies that look for growth and stability in the world market.

Steps to obtain a license for an investment and finance business in Dubai

Investment and finance company formation in Dubai involves a well-structured process. This is to ensure compliance with regulatory requirements and to leverage the advantages offered by Dubai’s financial free zones. Here is a clear step-by-step guide to obtaining a license for your investment company in Dubai.

Select the Proper Jurisdiction

Dubai offers several economic zones and mainland emirates where you can obtain an investment and finance license, each with its own set of rules and regulations. Choosing the right jurisdiction is crucial as it should align with your business needs and objectives. Carefully evaluate the benefits and requirements of each zone to make an informed decision.

Register Your Business

Once you have selected the appropriate jurisdiction, the next step is to register your company with the relevant authorities. This process generally involves completing an application form, providing proof of identity and residency, and paying the necessary application fees. Ensuring all documentation is accurate and complete will facilitate a smoother registration process.

Obtain a License

With your business registered, you can then proceed to obtain the necessary license from the designated authority. The licensing process varies depending on the jurisdiction but generally requires submitting an application, demonstrating financial stability, and meeting other specified criteria. It is important to comply with all requirements to successfully secure your license.

Adhere to Regulations

After obtaining your license, you must adhere to all relevant laws and regulations. This includes obligations such as paying taxes, submitting annual reports, and maintaining accurate financial records. Ongoing compliance is essential to ensure your business operates smoothly and within the legal framework set by the authorities.

Selecting the Ideal Free Zone for Your Investment Company in Dubai

Selecting the most suitable free zone is therefore one of the most critical and crucial factors for investment business setup in Dubai. Free- zones are beneficial, especially to the financial and investment industry. Within, one can find three free zones in the UAE that are specifically designed to attract investment companies.

1. DIFC Dubai International Financial Centre

Dubai International Financial Centre (DIFC) is a leading global financial center that has established itself as a destination for top-quality infrastructure, and regulatory and legal framework. It offers a diverse range of financial services such as asset management, private equity, and wealth management. The DIFC provides the right environment for global financial organizations because of its favorable environment for doing business and hiring competent and experienced personnel from different parts of the world. And this is home to big financial houses and international professionals. Companies based in DIFC benefit from:

  • A highly developed financial ecosystem
  • Access to global financial institution network
  • A regulatory environment aligned with international standards
  • Tax efficiencies and exemptions
  • A strategic location

2. Abu Dhabi Global Market (ADGM)

Located in the capital city of the United Arab Emirates, the Abu Dhabi Global Market (ADGM) is a key free zone that offers a conducive environment for investment companies. ADGM specializes in a wide array of financial activities, including fund management, asset servicing, financial advisory, and financial innovation. Notable for its innovative approach and regulatory transparency, ADGM provides:

  • A transparent and flexible regulatory framework
  • A focus on financial innovation and fintech
  • Access to a vast network of investors and financial institutions
  • A business-friendly environment promoting ease of operations
  • Legal and tax incentives that favor investment activities

3. International Free Zone Authority (IFZA)

For companies involved in international trade and investments or those looking to become shareholders of UAE mainland companies, the International Free Zone Authority (IFZA) is an ideal choice. IFZA is designed to facilitate foreign investments and supports a variety of business activities with a particular focus on international markets. Key benefits of establishing a company in IFZA include:

  • Cost-effective business setup options
  • A strategic location that enhances global trade opportunities
  • Simplified registration processes
  • Full ownership for foreign investors
  • Comprehensive support services for business operations