Brokerage Firms are financial Institutions that help in buying and selling of goods or services. They act as a bridge between the buyers and sellers.
Few Advantages of a financial brokerage:
- A finance broker saves your time. A person with the knowledge and experience in financial market will guide you move accurately
- The broker will co-operate and make the process for you as simple as possible. Your finance is made easy!
- Full Time Professional or to say experts in the area for assistance
“The majority of people living in the UAE (38 per cent) are able to save only 10 per cent of their income, while only less than a quarter (23 per cent) manages to leave 10 to 25 per cent of their earnings untouched. A worrying 28 per cent, nearly three out of ten people, are not saving at all.”
– According to a Survey by Payfort
How to start a financial brokerage firm in Dubai?
Foreign investors can start company in the financial sector of Dubai by registering as onshore company. They need to take into account the Commercial Code and the jurisdiction related to the financial industry. Also, all financial companies operating in Dubai is required to be in compliance with the licensing requirements implemented by the Central Bank and by the Emirates Securities and Commodities Authority (ESCA).
Let’s check the activity details of setting up a financial brokerage firm.
Financing Brokerage Activity Details
- Activity Code – 6619018
- Activity Group – Banks, Finance & Credit Group
- License Type – Professional
- Activity Description – Includes firms act as facilitator between borrowers, whether persons looking for personal loans or Businesses for purchasing, developing or expanding the business and lenders, it involves assisting them on securing the right finance from banks or other lending institutions
- It’s a professional license where the UAE national acts as a Local Service Agent (LSA)
- It can be owned 100% by the expatriate
- Its under the activity group of Banks, Finance & Credit
- Dubai Economic Department (DED) approval is required for setting the license in Dubai
- The total Governmental cost of the professional license is AED 9,538 Approx (US$ 2,599)
- This activity could also be done as a Limited Liability Company where 51% is owned by the UAE national and 49% by the expatriate
A brief procedure on the Licensing process is below:
- Initial Approval
- Trade Name
- Prepare MOA/LSA Agreement
- Establish Business Location
- Final Process of Business License submission
Dubai International Financial Center (DIFC)
Dubai International Financial Center (DIFC) is one among the top ten Financial Center and the Leading Financial hub in the MENA region.
Dubai International Financial center (DIFC) is one of the Dubai’s various iconic Free Zones. It has an independent jurisdiction and offers 100% ownership to companies with no requirement of an UAE national.
Dubai International Financial Center, in 2017 declared its various initiatives to boost up the growth of Dubai economy.
Dubai International Financial Center (DIFC) could also be a great option to start a financial brokerage firm.
If you are planning to setup your own financial brokerage firm in Dubai or anywhere across UAE, feel free to call us. Flyingcolour Business Setup, Accounting & Tax Services is a leading business setup service provider in UAE with 15+ years of experience. You can also send your inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.