The UAE is a major international business center that provides an alluring atmosphere to entrepreneurs. By creating a holding company in Dubai, you can handle several businesses and assets. This way, you can grow manifolds in the corporate sector of the United Arab Emirates.
A holding company offers control and managerial advantages by owning shares in other companies, while refraining from direct trading. It is a useful corporate entity for tax optimization, asset protection, and efficient management in the UAE. This guide covers everything about starting a holding company in Dubai.
Process to register a holding company in Dubai
This is the step-by-step procedure of registering a holding company in Dubai.
- Pick company name: Come up with a memorable company name for your holding company. Register it with the Department of Economic Development (DED) or the free zone authority. Ensure it follows the corporate naming regulations of the UAE.
- Decide corporate structure: Your business structure choice impacts the ownership, taxes, and operational freedom. Going for limited liability is the wise option for many holding companies. Think upon all of the matters before taking your decision.
- Select business jurisdiction: Finalize whether you want to establish your holding corporation in Dubai mainland or a free zone. If you do not go for mainland, then you can pick from suitable free zones for holding companies in Dubai. For example, Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Dubai International Financial Centre (DIFC), etc.
- Get business license: Apply for a suitable business license with the DED or the free zone authority. Submit the necessary paperwork, including copies of visa/passport, business plan, and MOA detailing shareholder information. Pay the fee and get the license after the regulatory approval.
- Rent office space: Take a suitable workplace in Dubai on rent or lease for your holding company.
- Create corporate bank account: Find a trustworthy bank in Dubai that offers international banking services. Register your business banking account to oversee your investments in the UAE. Also, it will let you monitor the financial transactions of your subsidiaries in Dubai.
- Ensure proper compliance: Keep frequent financial reporting with the UAE authorities. If applicable, then comply with the international laws and organizations. Also, renew your license on time, to save your holding companies from liquidation.
FAQs about holding companies in Dubai
These are the answers to the common questions on holding companies in Dubai, UAE.
A holding company is a legal corporation that owns stock in one or more of its subsidiary businesses. It oversees investments, assets, and intellectual property of its subsidiaries. However, it does not carry out direct company operations of its own.
Yes, foreigners can have 100% ownership in holding companies in Dubai, UAE.
Registration of a holding company in the UAE takes two to six weeks, depending on the jurisdiction and approvals.
Yes, eligible holding companies in Dubai, with revenues exceeding AED 375,000 are subject to corporate tax in the UAE.
Yes, a holding company in Dubai can own a property in the UAE.
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