Dubai’s business landscape offers an attractive destination for investors seeking to establish a mark in UAE’s ever-growing financial sector and business-friendly ecosystem. Dubai’s strategic location enhances its appeal to foreign investors and entrepreneurs, providing them access to the global market. This creates demand for asset management companies in Dubai because new businesses often seek professional consultation regarding their financial investments and can greatly benefit from the services provided by an asset management specialist. This article explains how to start an asset management company in Dubai.
Understanding the regulatory framework
Before setting up an asset management company in Dubai, it is essential to primarily comprehend and ensure compliance with statutory company regulations in Dubai. The regulatory framework for the asset management companies in UAE is set forth by the Dubai Financial Services Authority (DFSA) and is based on international standards ensuring investor protection and transparency. DFSA issues licenses to asset management companies and makes sure that the companies follow the standard regulatory framework.
Registering your asset management company
After gaining familiarity with the rules and regulations, it’s important to begin the process of registering your asset management company. Following are the steps to register your asset management company in Dubai:
1. Select a trade name for your company according to the UAE’s company name reservation guidelines. Submit three names of your preference while avoiding any derogatory language and religious connotations.
2. Keeping in view your business goals, specify the legal structure of your company such as Limited Liability Company (LLC), Free Zone Entity, partnership or Sole Proprietorship. In Dubai, a Limited Liability Company (LLC) is the most preferred legal structure for an asset management company as it protects the business owner from personal liability and also exempts them from the application of income tax.
3. Lastly, specify the business operations of your asset management company.
Choosing the right office space
Selecting the right location for your asset management company is crucial as different jurisdictions have distinct local regulations, and licensing requirements and have their own pros and cons that can significantly impact your business functions. You can set up your asset management company in mainland Dubai or in one of the many free zones. Setting up your company on the mainland gives you direct access to the domestic market but it is costly because of multiple licensing requirements and corporate taxation. Whereas free zones exempt businesses from corporate taxes, offer a range of networking and support opportunities, and have less stringent protocols for company registration. Thus, both the mainland and free zones have distinct pros and cons, so the best choice depends upon the specific nature of your business operations.
Applying for initial approval
After selecting an appropriate location for your office, you need to apply for initial approval in order to secure a trade license in Dubai for your asset management company. The application for initial approval is made to the Department of Economy & Tourism (DET) or the relevant Free Zone authority. Important documents to be incorporated in the application include passport copies of the company’s directors and shareholders, a detailed business plan, a trade name registration certificate, and a lease agreement. These documents are thoroughly reviewed by the relevant regulatory authority and then an initial approval certificate is issued to the company.
Applying for an asset management trade license
After the issuance of an initial approval certificate, the next step involves applying for a trade license in Dubai for your asset management company. To this end, the company needs to submit some important documents to the Department of Economic Development (DED) including the initial approval certificate, a Memorandum of Association, an identification of the company’s directors and shareholders, and an office lease agreement document.
Getting a trade license in Dubai not only ensures compliance with the legal framework but also offers compelling benefits for your business including tax exemptions and sponsorship opportunities. The asset management company might also need to apply for additional licenses depending on the nature of services being provided by your business.
Conclusively, for businesses in UAE to seamlessly establish an asset management entity in compliance with statutory regulations and requirements, it is advisable to seek the expert services of premier business setup service providers such as Farahat & Co. Thus, contact us today and we shall be glad to assist you.
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