Forex trading in Dubai, UAE, is one of the popular sources of income among a lot of foreign investors and entrepreneurs. Like all the other industries in the UAE, forex trading businesses in Dubai, UAE, are also well regulated by the local authorities in the United Arab Emirates. In fact, the forex industry in Dubai has adequate and unlimited support from the UAE government. Thanks to the support and foresight of the Dubai government, the city has an enormous forex sector that traders from all around the globe can enjoy. Read this article to know How to Start a Forex Trading Company in Dubai.

Most of the population in the United Arab Emirates consists of ex-pats, which means there are more foreign residents than local residents. These foreign residents have family back home and they depend on these foreigners.

As a result of this, the forex industry in the United Arab Emirates would be active even without the presence of forex traders in the market. This makes forex markets the number one sustainable and profitable industry.

If you think you have the necessary skills needed to start a forex trading company, then you can undoubtedly make a lot of profit in this industry. There are several free zones in the region that cater to the needs of such financial companies.

You can start your business as a Sole Establishment, where the expatriate or foreign citizen can be the full proprietor of the business and the UAE citizen can be the regional agent. 

Another option is to initiate your forex trading company as a Civil Company where there can be more than 2 overseas resident partners and the UAE resident can be the regional partner.

The third option is that you start your business as a Limited Liability Company where the UAE citizen has 51% of the equity and the migrant has 49% equity. 

Register the trade name

Forex broker in Dubai A trade name distinguishes one business from another. It also reflects the nature and the form of the business. 

You should prepare a list of 3 to 4 names that you wish to have as your legal name and present it to the concerned department. 

Once you have presented your request, the department would analyze it and sanction all the eligible business names. Therefore, you have the freedom to choose the one that you like most.

Here are some guidelines you must follow while creating a trade name.

The trade name must not violate the public morals or the public order of the country be compatible with the required type of activity and the legal status of the company or business entity not contain names of any religion, or governing authority, nor names or logos of any external bodies not have been previously registered. not have a name starting with words like "Universal", "Middle East", "International" and/or translate them into Arabic.

Apply for initial approval

Initial approval is a preliminary approval granted by the UAE Government to allow a foreign investor to proceed with setting up a business in the country.

It indicates that the government has no objection to the establishment of the business, but it does not give the business owner the authority to run or practice the business activity. 

Draft a Memorandum of Association (MOA) / Local Service Agent Agreement (LSA)

Memorandum of Association is considered as the constitution of the business organization and is a mandatory document for company formation in UAE.

It will contain the details of the shareholders, board of members, regulations regarding the operation of the company, policies, safety and security aspects, and so on. MOA has to be submitted along with other documents for business formation in the UAE.

Kindly note that businesses owned completely by non-GCC residents require a Local Service Agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.

Get additional government approvals

Based on the specific type of your business you might require additional government approvals as well. 

It is better to have an experienced consultant by your side at this stage as they will help you in getting all the government approvals required for your business.