Starting a Financial Consultancy Company in Dubai

The United Arab Emirates is indeed an unfailing choice not just for tourists, but also for overseas investors to start a business. Along with an unusually amazing modern infrastructure, it offers a highly-developed trade network and a productive business culture for businesses to thrive. However, many startups and foreign companies face difficulties in managing their finances and allocating resources constructively while starting their business in Dubai. Consequently, they have to turn to financial consultancies for aid. Financial consultancy companies are usually high in demand and do exceptionally well in Dubai. So, if you want to start a financial consultancy company in Dubai, you can benefit a lot in terms of money as well as learning.

Generally, financial consultancy companies have to serve a broad range of industries, ranging from small firms to large multinational corporations. Hence, they are essentially a crucial element of any business. To learn more about this field, keep reading.

What is a financial consultancy company?

Consultancy business is a field of activity where an individual or a group provides consulting services for private investors and enterprises in various areas. These services include consultancy related to financial, legal, commercial, technical, or any other subjects. Certain issues cannot be solved by an entrepreneur due to lack of time, knowledge, or other reasons. That’s why they seek the help of consultancy firms.

Similarly, financial consultancy firms are the ones highly specialized in finance and the economy. Their main purpose is to analyze and solve financial problems a client faces which can consequently hamper the development of a business. Often overseas investors do not hold enough expertise in the UAE’s business environment and commercial operations. So, they need financial consulting services for effective business strategic planning.

Why do companies need financial consultancy?

While planning a business in an economy like Dubai, planning the finances is equally important. Besides, considering the current economic situation of the UAE, it is crucial for businesses, especially startups to consult financial consultancy providers. This is how a financial consultancy firm can contribute to a startup or an established business

Increases profitability by focusing on result-oriented actions
Addresses the unpredictability of the business environment
Supports the business decisions with accurate financial terms
Ensures a healthy cash flow by identifying opportunities
Recommends defenses for any uncertain future problems
Ensures management of business finances separately from personal finances of the owner
Distributes limited capital to essential R&D areas
Identifies potential investors and fixes appropriate compensation for the investments
Assures maintenance of professional accounting records

Apart from that, financial consultancy companies help businesses avoid unnecessary costs and recommend efficient use of business finance which can eventually result in greater returns. Moreover, a financial consultancy not only holds experience in the finance sector but in different industries. This, thus, ensures that they have wide knowledge and expertise in market prices, and supplier and competitor behavior. So, the company can take the best deal accordingly and cut expenses while increasing revenues.

Financial consultancy license Dubai

Securities & Commodities Authority(SCA) regulates the financial consultancy business in The UAE. That means anyone who wants to start a financial consultancy company in Dubai must approach the SCA to seek approval and get a financial consultancy license Dubai as per its regulations and procedures. Additionally, the companies also have to follow the laws of the respective authorities of the jurisdiction, such as the DED(Department of Economic Development or the free zone authorities, Ministry of Economy, etc.

Description of Financial consultancy license by the Department of Economic Development:

Financial Analysis & Consultancy
Activity code – 671901
Activity group – Exchange and financial services
License type – Professional

Activity description – Financial Analysis & Consultancy are provided to the firms engaged in providing the clients with economic and financial analysis based on feasibility studies, forecasting current and future values of the commodity and contracts. The study also involves a systematic assessment of the financial statements to evaluate the past and current and to forecast the future performance of the enterprises. Furthermore, their responsibilities include assessing the securities and the commodities, their contracts, market price trends, and transaction volumes, to facilitate effective decisions for the company.

Also read the post: UAE Golden Visa: Golden Opportunity for Investors

Business activities permitted under financial consultancy license Dubai

Economic and financial analysis
Business feasibility studies
Market research and value forecasting
Financial planning and advisory
Capital investment consultancy services
Financial statement assessment and evaluation
Company performance analysis
Decision-making regarding financial analysis
Price trends and analysis
Consultancy on securities, commodities, and relevant contracts
Investment modeling portfolio

Furthermore, financial consultancy companies provide generous support to corporations and individual investors in financial planning as well as expanding their assets. In addition, they offer advisory to businesses for their seamless functioning and solutions to grow their finances effectively.

Benefits of setting up a financial consultancy company in Dubai

Full ownership of the business and repatriation of profits, if established in Dubai Free zone
Strategic location
Global connectivity
A range of options for business activities
Convenient and time-saving process of registration
No restriction on foreign currency
Option for multiple licensing
Tax advantages
Strong and competent market
Modern facilities and infrastructure

Process to start a financial consultancy company in Dubai

The process of financial consultancy company registration is pretty much similar to any other business in the UAE. It is quick, easy as well as straightforward. However, there are certain steps involved.

Choose the preferred location for the consultancy company – Mainland or Freezone
Select at least three trade names and get the suitable one approved by the authorities
Fill out the application form for company registration
Present the supporting documents
Obtain pre-approvals from Security Commodity Authority (SCA)
Submit the application form and documents for the financial consultancy license
Pay the requisite license fee to the licensing authorities
Collect the license along with the allied company documents such as Memorandum of Association, tenancy contract (for office space), Shareholder Agreement, etc. from the relevant department
Apply for the residency visa for the investors as well as other staff
Open an account in the bank for company transactions

Documents required to start a financial consultancy company in Dubai

Setting up a financial consultancy firm requires minimal documentation. The required documents include the following –

Details of the shareholder, such as passport, CV, photograph, etc.
Company registration form
Business plan
SCA approval form

Conclusion

The secret to the success of any business is sound financial planning. Companies, especially small start-ups need to plan their investments before getting into operations. Hence, they need a professional guide for this purpose. With the technological improvements and the growing market in the UAE, financial consultancy companies can find multiple opportunities to enter in. Besides, they get to have stable governance, and a robust network of the banking system which makes it a perfect destination to establish their business. On the whole, a financial consultancy company can never lack clients in Dubai or anywhere across the UAE.

So, if you want to start a financial consultancy company in Dubai, then get in contact with us today! Speak with our experienced business consultants at Shuraa Business Setup for further information and assistance. We aim to offer a delightful experience to our clients by providing reliable services with real-time outcomes. Call us at +97144081900 or send a WhatsApp message for a chat query on +971507775554. You may also visit our official website at www.shuraa.com or email us at info@shuraa.com.