The main 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. Being emerged as a financial hub of UAE, Dubai caters to a lot of foreign investors who seek to invest their money in different businesses.
Planning to setup 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 persons who not only understand the intricacies of this field, but are also able to peek into the future in order to seek out investing 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 to 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 a suitable software for carrying out financial planning.
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. They individuals may have little to no knowledge of financial matters. If they like the results at the initial stages, they may hire your permanently at a very good salary.
Making Money as A Financial Consultant
There are two ways a financial consultant makes money: charging a commission on the money made by the client, or receiving a flat fee from the client as agreed earlier.
Launching Your Financial Consultancy Firm
In Dubai, generating cash for a new business is every start-ups biggest headache. An affordable and less expensive option. It has a very low initial cost. There is absolutely no need for buying inventory, storing it, and constantly fretting over its security and maintenance.
As a financial consultant, you will be able to help Dubaiites manage their investments, file proper returns where needed, and build their portfolios in such a way that they become profitable both in the short run and the 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. You should also be aware of the sales, revenues, payroll, administrative costs and net profits.
1. Get a Trader’s License
Obtaining relevant certificate in the field of finance and getting a trader’s license is a must. Obtain a license for a competent authority in Dubai – Department of Economic Development (DED), for 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, half-yearly reports and the final yearly reports. Format for all these reports are available along with the submission dates. It must be noted that Dubai practices very strict implementation of laws. Any lag in reports submission may result in hefty fines.
2. Ownership of The Firm
The ownership rules vary according to the business activity. It all depends on whether you’re a foreign national, whether you’re planning to cater to the local or foreign market, etc. For a financial consultancy firm, you can have sole proprietorship.
According to the legal structure of UAE, such a firm would need only one manager to look after your business operations. Apart from that, your firm should have a trade name which should be related to the activity of the firm.
3. Get Local Support
When attaining 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 in setting up your firm.
They will be able to guide you regarding the prevalent 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 you chances of success manifold since people will not be hesitant to share their financial data with you.
4. Apply for business loans
Since Dubai offers a liberal business environment, the banks offers loans at competitive rates. If you need a business loan in Dubai, you would require a thorough business plan to be submitted to the bank. A business plan will serve as a blueprint for your future endeavors and how you plan to serve 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 for previous years
- Availability of securities provide prompt payment of loan
The Bottom Line
Dubai is one of the world’s fastest growing economies. With China and India as it 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.