A financial consultancy services company helps small businesses and individuals manage and grow their wealth. The purpose of this article is to provide you with guidance on how to start a financial consultancy services in Dubai.
Understanding the Local Financial Consultancy Services Market
Financial advisers who start independently are recommended to have extensive experience and hold a minimum qualification in the field to practice their profession. Currently, there is no standardized qualification for financial advisers in Dubai. However, clients will feel more comfortable if you can provide a comprehensive portfolio highlighting your experience and capability as a subject matter expert.
Most successful financial consultants in the local market have qualifications issued by international and regional bodies such as the Chartered Insurance Institute (UK), Financial Planning Association (US/Australia/Canada) or the Chartered Institute for Securities and Investments (UK).
Some financial consultants offer financial planning services, retirement planning and taxation advice. In contrast, others might limit themselves to financial planning only. You’ll need to determine your scope of services in the initial planning stages before you launch your business.
Payment Model of Financial Consultancy Services
You will need to also to figure out the payment model you will follow. Finding what is suitable for your needs is critical as this can be a common point of failure. Financial consultants can bill themselves as fee-based or fee-only.
Those working on a fee-only basis only receive payment from clients. The advice is generally considered impartial as there is no compensation from third parties. However, such advisors tend to charge more to clients.
On the other hand, a fee-based financial consulting professional has a business relationship with a bank or a brokerage firm. As a result, the fees are lower for clients because not only are you earning from a client, but you can also receive compensation in the form of commission or other means of compensation.
Regulatory Framework for Financial Consultancy Services Company
The Securities and Commodities Authority (SCA) is the regulatory body overseeing financial consulting services in Dubai. After receiving clearance from the SCA, you can apply for a local business license via the Dubai Department of Economy & Tourism. Local business licenses are common because they have fewer limitations when compared to free zone licenses.
Regarding free zone licenses, the Dubai International Financial Center (DIFC) is a popular jurisdiction for financial consultancy firms. DIFC has its distinct financial regulator known as Dubai Financial Services Authority (DFSA) and an independent arbitration court. The free zone also has modern facilities with state-of-the-art offices and an array of other businesses in the financial and legal sectors.
Some financial consultancy service providers opt to get free zone licenses from other Emirates such as Ras Al Khaimah and Fujairah that operate business and support centers in Dubai. The reason to opt for licenses from these jurisdictions is that they are usually more affordable and have fewer statutory requirements.
Why Choose Our Consultants to Help You Incorporate Your Consultancy Company?
When you launch a financial consultancy service, you need a thorough understanding of local laws and familiarity with incorporation requirements. Our team offers the expertise and knowledge to handle all aspects of incorporating a financial consultancy services company in Dubai. Please contact us today for a free consultation.
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