How to Launch a Financial Consultancy Firm in Dubai

The primary purpose of a financial consulting firm is to help individuals and businesses increase their wealth. A nascent financial consultancy firm in Dubai is most likely to serve high net worth individuals rather than big companies or multinationals. As a financial hub of the UAE, Dubai caters to a lot of foreign investors who seek to invest their money in different businesses.

Planning to set up a consultancy firm in Dubai? Being a financial consultant, you will be expected to provide detailed financial information and forecasts and offer sound investing decisions.

Financial consultancy is best for anyone who not only understands the intricacies of this field but is also able to peek into the future seek out investment opportunities. Proper certifications and online accounting degrees from internationally accredited institutions will help you further hone your consultancy skills in Dubai.

What Does a Financial Consultancy Firm Do?

If you are planning to launch a financial consultancy firm in Dubai, the first thing that you will be required to do is seek out potential clients for your firm. Once you have a sizeable clientele, you should be able to review their portfolios, file proper and timely reports to the regulator, and use suitable software for carrying out financial planning.

 Prospective Clients

In Dubai, you can find scores of high net worth clients willing to pay for your services. Most of them would have come into a lot of money through inheritance. The individuals may have little to no knowledge of financial matters. If they like the results in the initial stages, they may hire your firm permanently at an excellent retainer.

Making Money as a Financial Consultant

There are two ways a financial consultant makes money: charging a commission on the payment made by the client, or receiving a flat fee from the client as agreed earlier.

Launching Your Financial Consultancy Firm

As a financial consultant, you will be able to help those living in Dubai manage their investments, file proper returns where needed and build their portfolios in such a way that they become profitable both in the short and long run. You will also be able to enjoy a lot more flexibility than regular employees who work for companies and firms.

Below, you will find some points that will help you start work in your chosen field.

1.      Follow Rules and Regulations

Dubai is very different from the rest of the world. You must become familiar with the applicable laws.  According to the law, 51% of the company must be owned by a UAE national when setting up a firm.

You must acquire knowledge about tax rates, and how they are implemented. And finally, you should also be aware of sales, revenues, payroll, administrative costs, and net profits.

2.      Get a Trader’s License

Obtaining a relevant finance certificate and trader’s license is a must. A license from a competent authority in Dubai – like the Department of Economic Development (DED), is an important first step when starting and carrying out your business. Also find out which reports you will be required to submit to the regulator, and at what intervals.

Usually, a firm is required to file quarterly reports, semi-annual reports, and end of year reports. The format for all these reports is available along with the submission dates. It must be noted that Dubai practices a rigorous implementation of laws. Any lag in reports submission may result in hefty fines.

3.      Ownership of The Firm

The ownership rules vary according to business activity. It all depends on whether you’re a foreign national, and whether you’re planning to cater to the local or international market, etc. For a financial consultancy firm, you can have a sole proprietorship.

According to the legal structure of the UAE, such a firm would need only one manager to look after your business operations. Apart from that, your firm should have a trading name which should be related to the activity of the firm.

Get Local Support

When attaining a DED license, you need to have a Dubai-based agent or sponsor. Prepare and maintain a list of all friends and acquaintances who are already working in Dubai. Since there are different free zones in Dubai, you must know which agent has been authorized to you prior to setting up your firm.

They will be able to guide you regarding the standard practices in the emirate. They can also help you get clients from within the market. If you have a person in Dubai who is well known and trusted by the locals, it will increase your chances of success as they will not be hesitant to share their financial data with you.

5.      Apply for business loans

Since Dubai offers a liberal business environment, the banks offer loans at competitive rates. If you need a business loan in Dubai, a thorough business plan is required when submitting to a bank. The business plan will serve as a blueprint for your future endeavors and guide you when helping your clients.

Apart from that, you’d need to submit documents including:

  • Experience of business owners in the specific area
  • Financial statements of the parent company from past years
  • Availability of securities and provide prompt payment of loan

The Bottom Line

Dubai is one of the world’s fastest growing economies. With China and India as its biggest trade partners and inflows and outflows of billions of dollars every year, this tiny emirate is set to reach the economic heights none of its neighbors have even dreamed of. With proper planning, timely execution, and hard work, there is every chance of succeeding as a financial consultant in this thriving market.

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