Finance and Investment Company Formation.
Financial activity is mostly subject to licensing in all three countries. Which activity requires permission and which authority is competent is settled before formation.
Finance Formation Decided by the Licensing Regime.
Company formation is a limited part of the process; what decides is whether the activity is subject to licensing and which authority grants the licence.
Licence status of the activityManaging client funds, investment advice, and payment and financing services require permission in most countries.
Gathering your own investments within a company, and managing client funds or giving investment advice to clients, are legally separate matters. The second group is regulated activity: in the UK, most firms providing financial services require FCA authorisation or registration, and in the UAE one of four authorities is competent depending on the type and place of the activity. Which group your activity falls into is settled before the formation file is opened.
Competent authorityThe authority granting permission varies with the type of activity and the place where the company is formed.
In the UAE, the same activity may fall under the Central Bank or the Securities and Commodities Authority (SCA) on the mainland, the DFSA in DIFC, or the FSRA in ADGM; the location of the company is therefore chosen together with the permission. In the UK, the competent authority is the FCA. In Northern Cyprus, financial leasing, factoring, financing and electronic payment are subject to Northern Cyprus Central Bank regulations.
Partners and managersIn a licensed activity, the authority examines not only the company but also its partners and managers.
The regulator also examines the company's partners, managers and source of funds in the application. This file is more extensive than the formation file and the timetable is set by the authority; preparation is carried out in parallel with formation.
Bank accountThe bank wants to see the permission status of a company carrying out financial activity, with documents.
In a bank account application, the bank wants to see, with documents, the permission status of the activity, the ownership structure and the source of funds. The licence file and the bank file are prepared as parts of the same plan; the decision to open the account rests with the bank concerned.
Where the Licence Is Granted, Where the Company Is Formed.
A summary first: the country matching your situation is indicated below. A comparison of the three countries follows.
You are gathering your own investments under a company
If client funds are not managed, the activity may not require a separate financial licence; the scope is settled before formation.
You will manage client money or provide investment advice
The activity is subject to licensing: the FCA in the UK; in the UAE, the Central Bank, SCA, DFSA or FSRA depending on the activity and the place.
You will serve investors in the Gulf
Financial centres such as DIFC and ADGM are subject to their own regulator; the location of the company is chosen together with the permission.
| Criterion | Dubai | United Kingdom | Northern Cyprus |
|---|---|---|---|
| Structure and formation | Free zone or mainlandFor licensed financial activity, the place is chosen together with the authority granting the permission; DIFC and ADGM are a separate framework. | Limited · Companies HouseFormation at Companies House does not mean permission; regulated activity additionally requires FCA authorisation or registration. | Free Port · limitedAt least two partners; one visit to Northern Cyprus is required for signatures and the bank account, and the foreign partner's share capital is blocked at the bank. |
| Residence / visa for the team | Residence visa through the company | Company formation does not provide residence | Company formation does not provide residence |
| Tax framework | 0% up to AED 375,000, 9% aboveOn net profit; free zone companies included. | 19-25%, depending on profit19% up to £50,000, 25% above £250,000; a gradual transition in between. | 0% on business outside Northern CyprusFor a Free Port company; sales to companies within the Free Port are also exempt. Normal tax rules apply to sales to a local company within Northern Cyprus. |
| Setting up a finance and investment company in Dubai | Setting up a finance and investment company in the UK | Setting up a finance and investment company in Northern Cyprus |
The tax cells are a general framework, not a personal opinion.
Formation cost, typical timeline and bank channels are not included in this table: as they do not depend on the industry, they are presented in the full comparison of the three countries. Compare the Three Countries by Criteria
You can send us your activity, the parties you will serve and who will hold the funds; the scope of the permission and the country are assessed together.
Request an AssessmentFour separate regulators by activity
Setting up a finance and investment company in Dubai
In the UAE, financial activity falls within the competence of the Central Bank, the SCA, the DFSA in DIFC or the FSRA in ADGM, depending on its type and place. The place where the company will be formed is therefore chosen together with the permission.
- DIFC and ADGM are two separate financial centres, each with its own regulator.
- A holding and a structure for your own investments are formed separately from a structure that serves clients.
- The only country where a residence visa can be obtained through the company.
Restrictions to note for Dubai3 items
- Presence in the UAE is required for the visa and biometrics; this step cannot be carried out by proxy.
- Licensed financial activity cannot be carried out with an ordinary trade licence; the permission process is separate and the timetable is set by the authority.
- In addition to formation, a licence renewal cost arises every year. The second-year renewal should be planned from the start.
Regulated activity with FCA authorisation
Setting up a finance and investment company in the UK
A Ltd structure for a holding and for your own investments can be formed remotely. If financial services will be provided to clients, most activities require FCA authorisation or registration, and the permission process is run separately from formation.
- The Ltd structure is widely used as a holding and investment company.
- Company formation is completed remotely.
- The scope of the activity requiring permission and the application file are planned together with formation.
Restrictions to note for United Kingdom3 items
- Company formation does not provide a right of residence. Immigration is a separate process.
- An activity requiring FCA authorisation cannot be carried out without it; the permission process is separate from formation and the timetable is set by the FCA.
- The approval rate at traditional banks is low for non-resident partners; in practice, we start with a payment institution account.
Subject to Central Bank regulation
Setting up a finance and investment company in Northern Cyprus
In Northern Cyprus, financial leasing, factoring, financing and electronic payment are subject to Northern Cyprus Central Bank regulations. A Free Port company does not replace the separate permission required for these activities.
- An Eastern Mediterranean location.
- Contract and accounting practices are similar to those in Turkey, so the compliance process is short.
- Holding foreign currency and transferring abroad are free.
Restrictions to note for Northern Cyprus3 items
- Financial activity is subject to Northern Cyprus Central Bank regulations; a Free Port company does not replace this permission.
- Stripe and PayPal do not work with a Northern Cyprus company.
- It is not an EU member and is not the same country as Southern Cyprus.
Our Services for Finance and Investment Companies
The criteria above decide the matter; the services below cover putting that decision into effect. All of them are services we currently provide.
- Company formationWhether the activity is subject to licensing and which authority is competent are settled before the formation file; the location of the company is chosen together with the permission.
- Accounting and reportingAccounting records, filings and annual financial statements are run in a monthly cycle; the file is kept ready for situations that require an audit.
- Banking and payment systemsFor the account application, the documents on the activity, ownership and source of funds that the bank will examine are prepared consistently with the licence file.
- Visa and residenceIn Dubai, the residence visa through the company, the medical test and the Emirates ID steps are included in the formation plan.
The scope, timeline and fee of the service vary by country; details are on the relevant country page.
Frequently Asked Questions.
It depends on the activity. Gathering your own investments within a company, and managing client funds or giving investment advice to clients, are separate matters; the second is regulated activity in all three countries. This distinction is settled before formation.
Depending on the type and place of the activity: the Central Bank or the SCA on the mainland, the DFSA in DIFC, the FSRA in ADGM. The place where the company will be formed is therefore chosen together with the permission.
No. Formation at Companies House does not mean permission; most firms providing financial services require FCA authorisation or registration, and the permission process is run separately from formation.
The timetable is set by the authority granting the permission; no timeline is promised. As the authority examines the partners, managers and source of funds as well as the company, preparation is carried out in parallel with formation.
In Northern Cyprus, financial leasing, factoring, financing and electronic payment are subject to Northern Cyprus Central Bank regulations. A Free Port company does not replace the separate permission required for these activities.