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Business Setup in Dubai, UAE | Beyond View

Holding Company in UAE 2026: Setup, Cost, Tax & Requirements

The UAE has become a popular jurisdiction for entrepreneurs, investors, family businesses and international groups looking to consolidate ownership of multiple companies, investments and assets under one corporate structure.

A holding company in the UAE can be used to own shares in subsidiaries, manage investments and create a centralized structure for a group of businesses. Depending on the business objectives, a holding company may be established on the UAE mainland or within an appropriate free zone.

However, setting up a holding company requires careful consideration of licensing, ownership, corporate tax, economic substance, banking and the activities the company intends to undertake.

This 2026 guide explains how to set up a holding company in the UAE, including its benefits, requirements, costs, taxation and company formation process.

What Is a Holding Company in the UAE?

A holding company is generally established primarily to own shares or interests in other companies or investments.

Instead of carrying out the day-to-day operations of its subsidiaries, the holding company sits above them in the corporate structure.

For example:

UAE Holding Company

Trading Company

Real Estate Company

Technology Company

International Subsidiary

The holding company owns all or part of these businesses while each subsidiary can continue carrying out its own approved commercial activities.

What Can a UAE Holding Company Do?

Depending on its legal structure, licence and jurisdiction, a holding company may be used to:

  • Hold shares in UAE companies
  • Hold shares in foreign companies
  • Own subsidiaries
  • Receive dividends
  • Manage group investments
  • Hold intellectual property where permitted
  • Hold certain assets where permitted
  • Centralize ownership of several businesses
  • Support group restructuring
  • Facilitate succession planning
  • Sell or transfer investments
  • Provide certain permitted group functions

The activities permitted depend on the company’s licence and jurisdiction.

A holding company should not automatically undertake unrelated commercial activities simply because it owns operating businesses.

Why Set Up a Holding Company in the UAE?

A properly structured holding company can provide several strategic advantages.

Centralized Ownership

Instead of individual shareholders owning several businesses separately, ownership can be consolidated under a single parent company.

Better Corporate Structure

Businesses operating in different sectors can remain separate legal entities while being owned by one parent company.

Easier Expansion

New subsidiaries and investments can potentially be added to the group structure as the business expands.

Investment Management

A holding company can provide a centralized structure for managing qualifying corporate investments.

Succession Planning

Family-owned groups can use holding structures as part of broader succession and ownership planning.

International Business Structure

The UAE’s international connectivity and corporate framework make it attractive for regional and international groups.

Potential Tax Efficiency

Certain dividends and capital gains from qualifying shareholdings may benefit from UAE Corporate Tax exemptions when the applicable conditions are satisfied.

Tax planning should always be based on the actual structure rather than assuming that every holding company is automatically tax-free.

Types of Holding Companies in the UAE

There is no single structure suitable for every investor.

Common options include:

Mainland Holding Company

A mainland company can be appropriate for groups requiring an onshore UAE corporate structure.

The exact licence, legal form and permitted activities depend on the emirate and relevant licensing authority.

Free Zone Holding Company

Various UAE free zones provide company structures that can be used for holding or investment-related activities.

The suitability of a particular free zone depends on:

  • Permitted activities
  • Shareholding requirements
  • Office requirements
  • Corporate tax considerations
  • Banking
  • Subsidiary locations
  • Asset type
  • International business requirements

Special Purpose Vehicle

For certain investment structures, investors may consider an SPV.

SPVs are commonly used for specific investment, financing, asset-holding or transaction structures rather than broad operational activities.

Whether an SPV is appropriate depends on the objective of the structure.

Mainland vs Free Zone Holding Company

Choosing between mainland and free zone incorporation is one of the most important decisions.

Mainland Holding Company

A mainland structure may be suitable when:

  • The group has substantial UAE mainland operations
  • An onshore corporate structure is preferred
  • The holding company needs specific permitted mainland activities
  • The subsidiaries predominantly operate on the mainland

Free Zone Holding Company

A free zone structure may be attractive when:

  • The group has international investments
  • The chosen free zone offers an appropriate holding activity
  • The investor wants a specialized corporate environment
  • The structure satisfies the investor’s ownership and operational requirements

Do not choose a free zone solely because of an assumption that it automatically provides 0% Corporate Tax.

Free zone Corporate Tax treatment depends on whether the company satisfies the applicable requirements.

How to Set Up a Holding Company in the UAE

The process varies according to the jurisdiction, legal form and business objectives.

A typical setup involves the following steps.

Step 1: Define the Purpose of the Holding Company

Before selecting a jurisdiction, determine what the company will hold.

This can include:

  • UAE subsidiaries
  • Foreign subsidiaries
  • Shares
  • Investments
  • Intellectual property
  • Other permitted assets

Also determine whether the company will only hold investments or provide additional permitted services to group companies.

Step 2: Map the Corporate Structure

Create a clear ownership chart.

For example:

Individual Shareholder

UAE Holding Company

Subsidiary A – UAE
Subsidiary B – UAE
Subsidiary C – Overseas

This helps determine:

  • Shareholding
  • Legal form
  • Jurisdiction
  • Tax implications
  • Banking requirements
  • Ultimate Beneficial Owner information

Step 3: Choose Mainland or Free Zone

Compare jurisdictions according to the actual business objective.

Important factors include:

  • Holding activity availability
  • Setup cost
  • Annual renewal cost
  • Office requirements
  • Corporate tax implications
  • Banking
  • Permitted activities
  • Reputation
  • Ownership structure
  • Subsidiary locations

The cheapest company formation package is not necessarily the best holding-company structure.

Step 4: Select the Appropriate Business Activity

Select the activity that accurately reflects what the company will do.

Depending on the jurisdiction, activities can relate to:

  • Holding companies
  • Investment holding
  • Holding shares and securities
  • Headquarter activities
  • Other permitted investment activities

Activity terminology differs between licensing authorities.

Step 5: Choose the Legal Structure

The appropriate legal form depends on the jurisdiction and ownership requirements.

Possible structures can include:

  • Limited Liability Company
  • Free Zone Company
  • Free Zone Establishment
  • Special Purpose Vehicle
  • Other available corporate forms

Obtain professional advice where the structure involves substantial assets, international subsidiaries or complex tax arrangements.

Step 6: Reserve the Company Name

Choose and reserve an appropriate trade name.

The proposed name must comply with the naming requirements of the relevant licensing authority.

It is useful to choose a name that can accommodate future expansion rather than limiting the company to one subsidiary or sector.

Step 7: Prepare Shareholder Documents

Documents vary according to whether the shareholder is an individual or another company.

For individual shareholders, documents can include:

  • Passport copy
  • Emirates ID where applicable
  • UAE visa copy where applicable
  • Contact information
  • Proof of address where requested

Corporate shareholders may need additional documents such as:

  • Certificate of incorporation
  • Memorandum and Articles of Association
  • Board resolution
  • Certificate of incumbency or equivalent
  • Shareholder information
  • Ultimate Beneficial Owner details

Foreign corporate documents may require legalization or attestation depending on the jurisdiction and application.

Step 8: Obtain Initial Approval

Submit the initial application to the relevant licensing authority or free zone.

The authority reviews the:

  • Proposed activity
  • Shareholders
  • Legal structure
  • Trade name
  • Corporate documents

Additional approvals may be required depending on the proposed activities.

Step 9: Complete Incorporation

Once the application and documents are approved, complete the incorporation requirements and pay the applicable fees.

The company will then receive the relevant incorporation and licensing documents.

Step 10: Complete Corporate Tax Registration

A UAE holding company should assess its Corporate Tax registration and compliance obligations.

Do not assume that a company with no day-to-day trading activities has no Corporate Tax obligations.

The tax treatment depends on the entity and its circumstances.

Step 11: Open a Corporate Bank Account

After incorporation, the company can apply for a UAE corporate bank account.

Banks may request information about:

  • Shareholders
  • Ultimate Beneficial Owners
  • Source of funds
  • Subsidiaries
  • Expected transactions
  • Countries involved
  • Business activities
  • Investment portfolio
  • Corporate structure

A clear business model and transparent ownership structure can help with the compliance review.

Documents Required to Set Up a Holding Company in the UAE

Requirements vary between jurisdictions.

Common documents include:

  • Shareholder passport copies
  • Emirates ID for UAE residents where applicable
  • Visa copies where applicable
  • Proof of address
  • Proposed company names
  • Business activity information
  • Shareholding structure
  • UBO information
  • Corporate structure chart

For corporate shareholders, additional incorporation and authorization documents are generally required.

Always confirm the exact document list with the selected authority before submission.

Holding Company Cost in UAE

There is no universal fixed price for setting up a holding company in the UAE.

The total cost depends on:

  • Mainland or free zone
  • Emirate
  • Legal form
  • Selected activity
  • Number of shareholders
  • Office requirements
  • Visa requirements
  • Corporate shareholder documentation
  • Attestation/legalization
  • Professional services
  • Annual renewal fees

Additional costs can arise for:

  • Accounting
  • Corporate Tax compliance
  • Auditing where required
  • Legal documentation
  • Banking assistance
  • Tax advisory
  • Group restructuring

For this reason, investors should request a customized quotation based on the intended corporate structure.

UAE Holding Company Corporate Tax in 2026

This is one of the most important areas to understand.

A UAE holding company is not automatically exempt from Corporate Tax simply because it only holds shares.

Corporate Tax treatment depends on the company’s jurisdiction, income and whether relevant exemption conditions are satisfied.

Mainland Holding Company Corporate Tax

A mainland holding company falls within the UAE Corporate Tax framework.

However, certain dividend income and capital gains from qualifying investments may be exempt under the participation exemption rules.

This can significantly affect the effective tax position of a properly structured holding company.

Participation Exemption for Holding Companies

The UAE Corporate Tax regime includes a participation exemption designed to prevent certain forms of double taxation within corporate groups.

Subject to the relevant conditions, income from a qualifying participating interest can be exempt.

This can include:

  • Certain dividends
  • Certain profit distributions
  • Certain capital gains on disposal of qualifying interests

Whether an investment qualifies should be assessed against the current Corporate Tax Law and implementing decisions.

Do not assume that every shareholding qualifies.

Are UAE Dividends Tax-Free for a Holding Company?

Dividends received from UAE resident juridical persons are generally exempt from Corporate Tax under the UAE Corporate Tax framework.

Foreign dividends can also qualify for exemption where the applicable participation exemption requirements are satisfied.

The tax position should be reviewed based on the specific investment.

Are Capital Gains Tax-Free for UAE Holding Companies?

Capital gains from the sale of qualifying participating interests can potentially be exempt from UAE Corporate Tax where the participation exemption conditions are satisfied.

If the conditions are not met, the tax treatment can be different.

This makes investment structuring important before acquiring or disposing of shares.

Free Zone Holding Company Corporate Tax

A free zone company is not automatically exempt from UAE Corporate Tax.

A Free Zone Person that meets the requirements to qualify as a Qualifying Free Zone Person can benefit from a 0% Corporate Tax rate on Qualifying Income.

Holding shares and other securities is included within the UAE’s framework of qualifying free-zone activities, subject to the applicable conditions.

Non-qualifying income can be subject to the applicable Corporate Tax treatment.

Therefore, advertising a free zone holding company as simply “0% tax” can be misleading.

Does a Holding Company Need Economic Substance in the UAE?

The amount of operational substance appropriate for a holding company depends on its activities and applicable tax/regulatory requirements.

Substance can involve factors such as:

  • Adequate operations in the UAE
  • Appropriate management
  • Qualified personnel where required
  • Operating expenditure
  • Appropriate premises
  • Decision-making

For example, free-zone tax benefits have substance-related conditions.

Investors should determine substance requirements based on their specific structure rather than relying on generic holding-company packages.

Can Foreigners Own a Holding Company in the UAE?

The UAE permits foreign investors to own many types of businesses fully, subject to the activity and applicable regulatory restrictions.

Free zones have also long provided foreign ownership structures.

This makes the UAE attractive to international entrepreneurs looking to establish a regional holding structure.

The correct ownership arrangement should still be checked for the selected activity and jurisdiction.

Can a UAE Holding Company Own a Dubai Mainland Company?

A UAE holding company can potentially own shares in mainland operating companies, subject to the requirements applicable to those companies and their activities.

For example:

UAE Holding Company

  • 100% or partial ownership → Trading LLC
  • 100% or partial ownership → Consultancy LLC
  • 100% or partial ownership → Technology Company

The ownership structure should be documented correctly through the relevant corporate records.

Can a UAE Holding Company Own Foreign Companies?

Yes, a UAE holding structure can potentially own interests in foreign subsidiaries.

This can make the UAE attractive for international corporate groups.

However, investors should consider:

  • Foreign-country tax laws
  • UAE Corporate Tax
  • Double taxation agreements
  • Controlled foreign company considerations in relevant foreign jurisdictions
  • Withholding taxes abroad
  • Transfer pricing
  • Banking
  • Substance

International structures should be reviewed with qualified tax and legal advisers.

Holding Company vs Operating Company

A holding company and an operating company serve different purposes.

Holding Company

Primarily holds ownership interests and investments.

Operating Company

Conducts day-to-day commercial activities such as:

  • Trading
  • Consulting
  • Manufacturing
  • Technology services
  • Logistics
  • Retail
  • Professional services

A corporate group may use both.

For example:

Holding Company

Operating Company 1 – Trading
Operating Company 2 – Technology
Operating Company 3 – Consulting

This allows different operating activities to remain in separate entities.

Holding Company vs SPV in the UAE

Holding companies and SPVs can both be used within investment structures, but they are not identical.

A conventional holding company may be appropriate for broader, ongoing ownership of multiple subsidiaries or investments.

An SPV is often established for a narrower purpose, such as:

  • Holding one investment
  • Owning a particular asset
  • Transaction structuring
  • Financing arrangements
  • Isolating a specific investment

The appropriate option depends on the investor’s objectives.

Holding Company vs Parent Company

A parent company is a company that owns or controls another company.

A holding company is generally structured primarily around holding ownership interests rather than carrying out significant day-to-day operations.

A holding company can therefore be the parent company of multiple subsidiaries.

Can a Holding Company Own Real Estate in the UAE?

Corporate ownership of real estate depends on the property location, type of entity and rules applicable in the relevant emirate or designated ownership area.

Do not assume that every holding-company licence automatically allows ownership of every type of UAE property.

Property ownership requirements should be checked before selecting the corporate structure.

Can a Holding Company Hold Intellectual Property?

A company may potentially hold intellectual property, depending on its licensed activities and corporate structure.

Assets can include:

  • Trademarks
  • Patents
  • Copyright
  • Software rights
  • Brand assets

However, intellectual-property ownership, licensing income and related-party arrangements can create tax and transfer-pricing considerations.

Obtain professional advice before using a holding company for a complex IP structure.

Can a Holding Company Employ Staff?

Whether employees and visas are available depends on the jurisdiction, licence, office arrangement and permitted company activities.

Some holding structures are intentionally lightweight, while others may perform headquarter or management functions and require employees.

Determine staffing needs before choosing the jurisdiction.

Does a UAE Holding Company Need an Office?

Office requirements vary.

Depending on the authority and legal structure, options can include:

  • Physical office
  • Flexi-desk
  • Shared workspace
  • Registered office
  • Other approved facility arrangements

Tax substance, banking and operational requirements should also be considered rather than selecting an office solely to satisfy minimum licensing requirements.

Does a Holding Company Need an Audit?

Audit requirements vary according to:

  • Jurisdiction
  • Legal form
  • Free-zone regulations
  • Corporate Tax status
  • Company size
  • Other applicable regulations

Even where a statutory audit is not required, proper financial statements and accounting records remain important for tax compliance, banking and corporate governance.

Does a Holding Company Need Corporate Tax Registration?

A UAE holding company should assess its Corporate Tax registration obligations under the current UAE rules.

Holding shares or receiving exempt income does not automatically mean the company has no registration or compliance responsibilities.

Corporate Tax registration, return filing and record-keeping should be considered separately from whether particular income is ultimately taxable.

Is a UAE Holding Company Good for Family Businesses?

A holding structure can be useful for family-owned business groups because it can consolidate ownership of multiple operating businesses.

Potential benefits include:

  • Centralized share ownership
  • Easier corporate governance
  • Group restructuring
  • Succession planning
  • Investment consolidation

For significant family wealth or succession structures, investors should also consider whether a family holding company, foundation or other structure is more appropriate.

Is a Holding Company in the UAE a Good Option for International Investors?

The UAE can be attractive for international holding structures because of:

  • Strategic global location
  • Established corporate framework
  • Foreign ownership options
  • Extensive international connectivity
  • Corporate Tax exemptions available for certain qualifying income
  • Free zone options
  • Access to professional financial services

However, the benefits depend heavily on how the company is structured.

A holding company should therefore be designed around the investor’s actual business and investment objectives.

Common Mistakes When Setting Up a UAE Holding Company

Choosing the Cheapest Free Zone

The lowest incorporation cost may not provide the best activity, banking, tax or ownership structure.

Assuming the Company Is Automatically Tax-Free

UAE Corporate Tax rules apply to holding companies. Specific income may qualify for exemptions, but conditions must be satisfied.

Selecting the Wrong Activity

The licence should accurately reflect the company’s intended holding and investment activities.

Ignoring Banking Requirements

Complex ownership structures can require additional bank compliance documentation.

Ignoring Corporate Tax Registration

Exempt income and Corporate Tax compliance are separate issues.

Mixing Holding and Operating Activities

Combining too many unrelated activities in one entity can reduce the advantages of a clean group structure.

Ignoring International Tax Consequences

A UAE structure may have tax implications in the countries where shareholders, subsidiaries or assets are located.

Why Use Business Setup Consultants for a UAE Holding Company?

Holding-company formation is more strategic than simply purchasing a business licence.

An experienced consultant can help evaluate:

  • Mainland vs free zone
  • Appropriate holding activity
  • Legal structure
  • Shareholder structure
  • Subsidiary ownership
  • Corporate documentation
  • Setup costs
  • Banking preparation
  • Corporate Tax considerations
  • Ongoing compliance

For complex structures, business setup advice should be coordinated with qualified legal and tax professionals.

Set Up a Holding Company in the UAE

A UAE holding company can provide a flexible structure for entrepreneurs, investors and corporate groups looking to consolidate ownership of businesses and investments.

The most important step is selecting the right jurisdiction and corporate structure based on the assets and subsidiaries the company intends to hold.

Beyond View Business Services can guide investors through UAE holding company formation, including jurisdiction selection, company setup, documentation and ongoing business setup support.

Contact our business setup consultants to explore the most suitable holding-company structure for your investment objectives.

Frequently Asked Questions About Holding Companies in the UAE

1. What is a holding company in the UAE?

A holding company is generally established primarily to own shares or interests in other companies or investments rather than conducting the day-to-day operations of those subsidiaries.

2. Can foreigners start a holding company in the UAE?

Yes. Foreign investors can own many UAE business structures fully, subject to the selected activity, jurisdiction and applicable restrictions.

3. Can a holding company own multiple companies?

Yes. A holding company can be structured to own interests in multiple subsidiaries, subject to the applicable corporate and regulatory requirements.

4. Can a UAE holding company own foreign companies?

Yes. UAE holding companies can potentially hold shares in companies outside the UAE, subject to the relevant UAE and foreign-country regulations.

5. Is a UAE holding company exempt from Corporate Tax?

Not automatically. UAE holding companies fall within the Corporate Tax framework. However, certain dividends and capital gains may qualify for exemption when applicable conditions are satisfied.

6. Is a free zone holding company automatically taxed at 0%?

No. A Free Zone Person must satisfy the requirements to be treated as a Qualifying Free Zone Person, and the 0% rate applies to Qualifying Income subject to the Corporate Tax rules.

7. Are dividends received by a UAE holding company taxable?

Dividends from UAE resident juridical persons are generally exempt. Foreign dividends can potentially qualify for participation exemption when the applicable requirements are satisfied.

8. Are capital gains from selling subsidiaries taxable?

Capital gains from qualifying participating interests may benefit from the participation exemption when the applicable conditions are met.

9. How much does a holding company cost in the UAE?

The cost depends on the jurisdiction, legal structure, licence, activity, shareholders, office requirements and additional professional services. There is no single UAE-wide fixed setup price.

10. Can a holding company own a mainland company in Dubai?

Potentially, yes. A UAE holding company can own shares in mainland companies subject to the ownership and activity rules applicable to those subsidiaries.

11. Does a UAE holding company need a bank account?

A bank account is generally useful for receiving dividends, paying expenses and managing group transactions, although banking requirements depend on the company’s activities.

12. Does a holding company need an office?

Requirements vary by jurisdiction and structure. Some jurisdictions offer flexible registered-office arrangements, while others may require physical premises.

13. Can a holding company buy property in Dubai?

Potentially, depending on the entity structure, property location and applicable Dubai property ownership rules. The structure should be checked before purchasing real estate.

14. Can a holding company employ people?

This depends on its licence, jurisdiction, office arrangements and permitted activities.

15. What is the difference between a holding company and an SPV?

A holding company is often used for ongoing ownership of multiple subsidiaries or investments, while an SPV is commonly created for a specific asset, investment or transaction.

16. Can a holding company provide services to its subsidiaries?

Potentially, if the activities are permitted under its licence and the relevant regulatory and tax requirements are satisfied.

17. Does a holding company need accounting records?

Yes. Proper financial and accounting records are important for corporate governance and UAE Corporate Tax compliance.

18. Can I transfer my existing UAE companies to a new holding company?

Potentially, yes. This normally involves restructuring share ownership and completing the applicable corporate approvals and documentation. Tax and legal implications should be reviewed before the transfer.

19. Which is better for a holding company: mainland or free zone?

It depends on the subsidiaries, investments, tax position, banking needs, activities and long-term business strategy. Neither option is automatically better for every investor.

20. How do I start a holding company in the UAE?

Define the intended investments and subsidiaries, choose the jurisdiction and legal form, select the appropriate activity, prepare shareholder documents, complete incorporation and then address banking, Corporate Tax and ongoing compliance requirements.

Are you considering to start your business in UAE and wants to work with some local entities worldwide? Just know that Holding Company formation in UAE might come as an amazing idea. Read further to know how? With this idea any expat could earn an amazing fortune. A UAE holding firm gives expats a range of benefits, such as the protection of their assets, limited liability, tax efficiency and much more.

Luckily, setting up a holding company in Dubai is fairly easy and doesn’t require big amount for investment. This blog will cover all aspects of what a holding company is, how to operate it in the UAE, the benefits of a holding company in the UAE, common types, the criteria to meet for setting up a holding company, the associated costs, and much more.

Details of Holding Company in UAE?

A UAE holding company is a distinctive type of corporation that possess other entity shares or assets. The holding company does not interfere in any activity of business itself, but it has to manage its subsidiaries. In this way, shareowners can safeguard themselves from issues of liability by sperate their share or assets from the liabilities of their branches.

The UAE permit the holding companies incorporation in all its Emirates. Business entity that holds the bulk of shares of another company is known as holding firm. Like this, overseas entrepreneurs and investors can enjoy full ownership of the corporate investment they have made through mergers or acquisitions. The approach of holding firms is used in different countries worldwide. If you wish to open a holding company in UAE, you don’t have to meet any paid-up capital criteria. With just $1 or less capital, you can own a UAE holding firm.

Categories of Holding Companies

It’s on priority to decide the category of holding firm you want to manage before registering it. There are two sorts of holding firms in the UAE:

  • Onshore Holding Companies
  • Free Zone Holding Companies

1: Onshore Holding Company

According to the UAE law you need to form an onshore or mainland holding company, if you want to form a trading business or activity in the UAE. For such establishments, the UAE’s Ministry of Economy is the regulatory body. And you must comply to the UAE’s Companies’ regulation.

To establish offshore companies that can run worldwide, onshore Holding firms are an excellent way to create this. The legislation of Companies in UAE permits your mainland holding company to manage administrative and business activities through the branch companies inside and outside of the UAE without interfering in business activities.

2: Freezone Holding Company

Second option is free zone Holding Company; The UAE Economy is known to be as one of the most developed economies worldwide. Their govt. has established more than 60 economic free zones in UAE’s major Emirates, to facilitate overseas investors. You can start your business with minimize taxes, as well as little investment at the same time. A free zone is a perfect way to start your business with great flexibility because it offers many incentives, like

  • Generous tax exemptions
  • No currency restrictions,
  • Ability to repatriate 100% of your profits and principal investment.

The UAE government has also announced that after UAE’s new corporate tax regime comes into effect in 2023, the free zone businesses will continue to enjoy zero corporate taxation.

Why Choose UAE for Holding Company formation?

In recent years, Dubai has been transforming from an oil-based economy to an entirely service-based system. There are several advantages of holding company setup in Dubai and other parts of the UAE. Some of them are given below:

1: Easy Banking

Opening a business bank account in the UAE can be particularly challenging for newcomers. If you have an ID and hold a UAE business license from JAFZA, opening a business bank account could be much easier. Moreover, through internet banking you can access funds at will from anywhere around the globe, proving the greater power of business finance wherever you live.

2: Limited liability

One of the most noteworthy benefits is that your assets are safe from legal action against your business. If your business gets into trouble, your assets belonging to other subsidiaries will remain safe. so, you don’t have to worry about losing all of your assets. Even if a subsidiary runs into financial trouble, the remaining subsidiaries remain safe from liquidation action or regulatory oversight.

3: Tax Efficiency with offshore status

To take advantage of this benefit, you must first register a holding company in the UAE. The income of foreign companies will not be taxed in the country. You also get the benefit of double taxation agreements with more than 80 countries in Latin America, Europe and Asia.

4: Establishing Credit

Banks and other lenders are likely to be more willing to lend or extend credit to you if they see that your investment is worth more than what you are asking for. The value of the parent company’s assets will also form part of that entity’s overall financial strength, so it could be argued that by investing in the subsidiary you have actually increased its overall value. Other than this:

  • No corporate tax
  • A local or overseas investors can take advantage from better privacy, through a holding company.
  • Simplified management procedures for subsidiaries also offers by the holding company and many other benefits also.

Criteria to Open a UAE Holding Company?

These are the points of How to Set Up a Holding Company in UAE.

  • Choosing the right holding company business activity
  • Obtaining permission from relevant agencies and authorities
  • Depending on the location to set up your business, you must obtain a Holding Company License Dubai from the relevant Emirate government or free zone.
  • Registration with the authorities of the free zone or the Ministry of Economy (MOE)
  • Opening a bank account for business in the UAE
  • Visa application, if necessary.

Costs of Holding Company formation in UAE

Total cost of forming a company in UAE, includes:

  • Initial approval: AED 120
  • Fees Business Center: AED 25,000 (if needed)
  • Business name registration: AED 600
  • Application of License: AED 600
  • Selected free zone licensing fees usually start from AED 15,000.
  • Including rental, administrative, and consultation costs, forming a holding company may cost you round about AED 20,000 or more.

Wrapping Up

Holding company setup in the UAE is a good way to safeguard and manage your assets. It also offers many advantages such as tax efficiency, greater flexibility, minor risks, no specific capital needs, and greater diversification of subsidiaries.

Although the process is simple, you need to prepare all the documentation and complete the paperwork properly in order to work more efficiently. Beyond View’s industry leading business consultants have considerable expertise in establishing businesses in Dubai and the UAE. Contact us today to make it easy for you to get started with your UAE holding company. We’d love to assist!

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