Merger and control of property is one of the Keystone of concern for financiers in all over the world and even more so in the United Arab Emirates. A growing financial system as well as a high density of family wealth in the region, require a solid structure that can support maximum net worth individuals in administrating their investments. Holding company in the is the One such structure.
DIFC is set to undergo high development, and plans to use additional place to construct additional disk space and office, residences, shopping spaces and also entertainment. Also, the 13 million square feet of land allocated to hunting innovation, as well as a plan to meet the requirements of professionals from all over the world.
Such circumstances help to attract incredible talent around the globe. More than 22,000 professionals already settled and doing work in the DIFC. A holding company in the DIFC is able to recruit talented analysts and managers, and access to a pool of next level service providers into the hub, and making it a self-contained ecosystem.
Definition of a holding company in DIFC
Definition of a holding company in Wikipedia is as “a firm that owns shares of other firms”. Briefly, a holding company build up investments, whether they are shares in other firms or property, under a common roof for ease of administration and reporting. These companies usually do not run a business or service – they just administrate existing investments. The holding’s management team also seeks new investments based on certain predetermined criteria to expand its existing portfolios. The DIFC offers a mind-blowing corporate structure to aid such activities like the DIFC Holding Company.
Why establish Holding Company in the DIFC?
DIFC is a leading financial center for both business and lifestyle. The Holding company setup in DIFC offers to hold properties in the UAE, might be GCC or anywhere else globally. These involves real estate and shares in other firms in the UAE and in other countries. These are the main factors why setup holding company in DIFC is worthy. Following are few reasons why establishing a holding company in the DIFC is beneficial.
Perks of establishing Holding Company in DIFC
Some amazing advantages of setting up holding company in the DIFC are mentioned below:
1: Legal and Regulatory framework
- Cross-border activities supports by legal framework.
- Foreign ownership is 100% allowed
- Foreign talent or employees have No restrictions
- Capital repatriation have No restrictions
2: Benefits of tax
- Since 2004, there’s no tax for 50 years on profits, capital or property.
- No tax on employee income
3: Geographic Hub
- Holding companies, Management offices and family offices are located near to the properties they own or manage
- The Africa, South Asia and Middle East, is rising the global economy focus.
- Dubai plays an essential role in growing South-South trade, especially between Asia and Africa.
- Privileged to exploit the capability of emerging markets
4: Equivalent confidence
- Independent, highly regarded regulator
- English-speaking, Independent, common law judicial system
- Distinct from the UAE legal system
- Risk-based regulatory approach
5: A diverse ecosystem
- Central for concluding regional agreements
- High concentration of international companies, investment funds, asset managers, banks and financial organizations.
- First-class regional and international legal and auditing companies and other professional services
- The largest domicile of the fund in the region
Cost for setting up Holding company in DIFC
The formation of a DIFC holding company involves the following interactions:
- DIFC Registrar of Companies: The ROC helps set up the legal structure of a DIFC holding company. In most cases this would be a private company limited by shares. Shareholders can be individuals or corporations. The costs of establishing such a company are:
- Application to reserve a name which would take up to 2 business days are $800
- Application to register a private company limited by shares which would take up to 5 working days are $8,000
- Commercial license to start a company (5 working days): USD 12,000 per year.
- Data protection
- The Data Protection Notice is part of the process of registering a new entity with the DIFC. The associated costs are as follows:
- Registration – $500
- Annual renewal – $250
- Office premises: Every entity registered in the DIFC must rent a physical office. You can choose from the Gate and surrounding buildings, or other buildings within DIFC such as Emirates Financial Towers, Central Park, Park Avenue, Burj Daman and Currency House. Prices vary by space and building. Here is an overview of the prevailing rates:
- DIFC Business Center – from one office for $27,000.
- DIFC Furnished Offices – from $55 per sq ft.
- Other buildings – from $32,000 per year
- Visa: Application to set up a card – $630
- PSA deposit – $682
- Visas (per visa) – from 1500 USD
- PSA deposit (for visa) – USD 682
Visa Services for the holding company in the DIFC
Same like offshore firms, a holding company in Dubai is a properly functioning entity. It can apply for visas for its employees and their families. The Govt. Office in DIFC is keen to provide a wide range of services, and one of them is the issue of visa renewal. The number of visas you can apply for will depend, both on the type of business you plan to set up and the size of the office, as the main plot of land, you rent in DIFC.
The DIFC provides an ideal environment for your holding company formation and operating it smoothly. The application process is detailed and includes a thorough screening and background check. This ensures that only serious members are able to establish a presence, thus preserving the sanctity and reputation of the center. Once set up, a whole new world of opportunities will emerge where investors can efficiently manage their existing portfolios and tap into the growing MENA investment ecosystem.
Beyond view, a Business Setup Company is a leading provider of efficient services of business setup in DIFC with years of experience in helping individual entrepreneurs, start-ups, and multinationals. Our highly qualified Business setup consultants in Dubai can help you in establishing a holding company in DIFC, as they are well-versed in such matters. For more details about holding company formation in DIFC and many other DIFC Services. Please Contact Us. We’d love to assist!