How to Start an Investment Company in UAE?

Start an Investment Company in UAE

The United Arab Emirates is the flag bearer of prosperity, innovation, and business opportunity in the Middle East. With its dynamic business environment, strategic position, and investor-friendly policies, it has aided entrepreneurs and investors from around the globe providing a lucrative platform to establish their desired businesses.

As the country continues to adopt technological innovations and develop its financial network, there has never been a more appropriate time to start an investment company in UAE.

Amidst a constant attempt to keep up with the latest trends and developments, the UAE has been actively reinforcing its position as a global fintech hub attracting both local and international giants who are seeking to transform the financial industry of this Arab nation.

This comprehensive guide will explore all the major aspects related to opening an investment company in Dubai and across UAE, including the procedure, allied activities, and suitable locations for business setup.

Procedure to open an Investment Company in Dubai

Below given is the step-by-step procedure to start an investment company in UAE –

Choose an ideal jurisdiction

There are a number of free zones and Mainland regions that offer investment and finance licenses for aspiring investors and financiers. Since each of these regions have its own set of rules and regulations, it is important to research meticulously and choose the one that suits best your business plan and needs.

Register your company

Once you have decided what location you want to set up your firm, register your company with the relevant authorities, the Department of Economic Development (DED) for mainland setup and free zone authorities for free zone company setup. The process of registration basically involves submitting an application form, along with proof of identity and residency, and lastly paying a registration fee.

Get a license

Once the company is registered, the authorities will issue a license as per the procedure. The procedure differs in each jurisdiction, nevertheless, the basic requirements involve the submission of an application form, proof of financial solvency, and other legal formalities.

Comply with the regulations

Compliance with all applicable laws and regulations pertaining to investment and finance companies is mandatory. These rules include paying regular taxes, filing annual reports, and keeping accurate records.

Additional tips to successfully start an investment company in UAE –

  • Hire a highly professional and experienced consultant in UAE who specializes in the field of investment and finance. For instance, UAE Expansion is one of the leading business setup firms in UAE that can help you to navigate the complex legal requirements of investment company formation and avoid any fatal errors.
  • Conduct in-depth research to learn and understand the different types of licenses available for this particular business and the requisites associated with each one.
  • Since obtaining an investment license in the UAE can be a costly affair, you should be prepared enough to invest your maximum time, effort, and resources in setting up your business successfully in the country.

Types of activities covered under Investment License

The license you choose for your investment company will determine your business development strategy. Hence, it is advisable to be careful while choosing an appropriate activity for your license. UAE Expansion financial consultants will help you understand the licensing details and procedures.

  • Commercial projects – Placing and managing funds in commercial assets and business projects.
  • Operations with securities – Financial investment and intermediary activities in financial markets.
  • Financial products – Direct financing, providing finances for trade activities, issuing credit cards, etc.
  • Payment service provider – Activities related to receiving and processing payments for third parties
  • Investment consulting – Services related to attracting investments, placing them wisely, and enhancing the use of assets.
  • FinTech licenses – Providing financial services using innovative technologies and Big Data, artificial intelligence, and blockchain.
  • Insurance and reinsurance – Offering insurance and reinsurance services to both corporates and individuals.
  • Creating Investment Funds – Assembling funds of private individuals and legal entities for joint investment.
  • Asset Trust Management – Placing the investors’ funds in company assets and financial products for a nominal fee.

Additional investment activities:-

1. Agricultural Management Investment

Investing funds and holding the assets of subsidiary businesses carrying out various agricultural-related activities.

2. Commercial Management Investment

Investing funds and holding the assets of companies conducting a diverse range of commercial, transportation, contracting, and financial activities.

3. Industrial Management Investment

Investing funds in companies conducting a diverse range of industrial, extraction, or converting activities.

4. Outer Space Projects Investment

Investing in a diverse range of activities related to outer space, whether with domestic or foreign capital.

5. Oil and Natural Gas Projects Investment

Investing and holding assets of businesses related to petroleum and natural gas activities.

6. Sports & Development Investment

Undertakes all firms that deal in sports activities and projects related to sports.

7. Water Development Investment

Investing in businesses dealing in a diverse range of water infra business activities.

8. Healthcare Development Investment

Placing and managing funds for the construction of healthcare facilities such as hospitals, clinics, rehabilitation centers, and other related businesses.

9. Energy Management Investment

Making investments in non-renewable and renewable energy sources.

10. Educational Management Investment

Investing in educational entities and projects that aim to enhance the skills of children with autism and special needs.

11. Tourist Management Investment

Making investments in tourism facilities in order to progress Dubai as a tourist destination.

12. Retail Trade Management Investment

Investing in a wide variety of retail trade and managing related entities.

UAE Expansion assistance can help you set up your desired type of business swiftly as well as without any hassles.

Various Free Zones to Start an Investment Company in UAE

Listed among the popular destinations for investment and finance businesses, the UAE offers a stable economy, a skilled workforce, and a strategic location for the smooth functioning of these companies. However, the selection of an appropriate free zone is equally crucial while planning an investment business in UAE.

Given are some of the premier free zones in UAE that cater specifically to financial and investment businesses –

Dubai International Financial Center (DIFC)

This globally recognized financial hub of UAE is acknowledged for its advanced infrastructure, supportive regulatory framework, and strong legal system. Its wide range of financial services includes asset management, private equity, wealth management, and more. Thus, investors and capitalists can find a business-friendly environment in the DIFC that attracts top-tier financial institutions and professionals from around the world.

Abu Dhabi Global Market (ADGM)

Situated in Abu Dhabi, the capital city of UAE, the ADGM is yet another prominent free zone offering numerous advantages and favorable ecosystems for investment firms. Its specialization includes fund management, asset servicing, financial advisory, and fintech. Besides, its innovative approach, regulatory transparency, and access to a vast network of investors is acknowledged globally.

International Free Zone Authority (IFZA)

IFZA is another designated option for international trade and investments and for companies that are wanting to become a shareholder of a UAE mainland company.

Invest in Dubai

UAE Expansion is committed to providing comprehensive support to entrepreneurs and investors who are interested to start an investment company in UAE. With their broad experience and in-depth knowledge of the financial market, business owners can embark on a successful journey and embrace the dynamic business landscape of the country.

Get in touch with UAE Expansion and book a free consultation with their experts for free.

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