Opening a Financial Brokerage Firm in Dubai - All you need to know
Dubai’s economic vitality is very welcoming for businesses, particularly in the financial sector. With its high trade volume and countless number of businesses established there, it is an ideal location to set up a business in Dubai, especially in the finance sector. However, making use of the correct location in Dubai and the policies and rules of the UAE, which are designed to welcome more investment and business opportunities, can be hard when you are new to the business. It is ideal to ask an expert for help in this matter and become familiar with the procedure for starting a financial brokerage company in Dubai.
A brokerage company is a company that acts as the middleman in financial transactions or trading, like buying and selling trades, making investments, etc. They make their profit on the transaction fees and other charges involved. Dubai’s financial world on hyperdrive is a good growing ground for a financial brokerage business, and here are the things you need to know about starting a financial brokerage in Dubai.
The location to setup your financial brokerage firm in Dubai
Investors can choose to establish their brokerage firm in Dubai, which is governed by the Department of Economic Development and free zones like the DIFC. The DIFC has policies curated to attract financial companies to invest in the freezone. To start your brokerage firm in the DIFC freezone, you have to submit a request to the Dubai Financial Services Authority (DFSA).
After that, there will be an initial meeting with the DIFC authorities and DFSA along with a letter of intent. The investor must have a regulatory business plan to present to the DIFC to start doing business there. The financial sector of Dubai has restrictions on the types of financial companies that can be established there, and the permitted companies are
- Banks
- Investment companies
- Investment funds
- Insurance companies
- Investment trusts
Why start your financial brokerage firm in DIFC?
DIFC is designed to be the ideal location for a financial company to grow and spread, and the policies of the free zone are made such that financial companies setting up there will have maximum benefits and will also be attractive to potential investors. The benefits of setting up a financial brokerage firm in DIFC are
- 0% tax rate on corporate and personal income
This is the most attractive benefit of the DIFC freezone, and growing and established businesses can greatly reap the benefits of this tax exemption. - Zero currency restrictions
Currency restrictions were reduced to zero in order to promote international trade and encourage investors to visit Dubai and the UAE. - Repatriation of capital and profits
This enables the company to return its assets and profits to its home country. This is a desirable feature for foreign corporations interested in establishing financial operations in the DIFC. - Premier office location
The location and infrastructure of the office is also important for a financial business, in DIFC you can bet access to the premium offices and location that can greatly help the business.
Requirements of UAE government regulators to start a financial brokerage firm in Dubai
- State control
There are different state requirements depending on the type of activity and jurisdiction of incorporation. The main regulatory bodies are the Central Bank (CB) of the UAE, the Financial and Commodity Markets Management Committee (SCA), and the Police.
- Share Capital
The minimum shared capital varies from activity and jurisdiction to jurisdiction. This is to ensure that the business has good potential and to avoid unnecessary hassles in the future because of a less prepared business.
- Bank Guarantee
A significant cash deposit is required based on financial activity, which increases trust in the company from both the authorities and their clients. For a financial company, trust is a must, hence the requirement of a bank guarantee.
- Qualified personnel
There are appropriate levels of education or qualifications required for staff. The standard of the business should be high enough to meet the standards of the other businesses present in and around DIFC so that it will be able to provide satisfactory service to these companies.
- Equipped Office
Financial and investment companies are subject to several requirements related to having a physical office equipped according to regulatory standards and international norms.
- Internal control
To minimise risks, regulators must ensure a system of internal control and strict compliance with the law. They also look for mechanisms and processes that ensure compliance with money laundering legislation.
Overall starting a financial brokerage firm in the DIFC is a smart move, but it is a move that will take time and resources that are dedicated to the process. With the help of an expert, it is possible to get over these arduous steps and focus on more important matters regarding the business. Alchemist Corporate Services has a team full of experts who are experienced and skilled to help you throughout the setup process and guarantee that you get the maximum benefits of the DIFC. To know more, reach out to us at +971556205750, and our expert will help you get started.
