How to Set Up a Holding Company in Dubai?

Dubai’s status as a global business hub was validated again after UAE’s Ministry of Economy announced that the Emirate was ranked number one in the ‘Global Entrepreneurship Monitor (GEM) report’ for the year 2024-25. Government-friendly policies, tax rebates, and state-of-the-art infrastructure makes the Emirate  ideal for business setup in Dubai. If you are looking for why to set up a holding company in Dubai, this guide will help you understand the different types, benefits, and the steps involved with starting one.

What is a Holding Company in Dubai?

A holding company is a parent company that holds shares, owns assets, and manages subsidiary companies. They are directly involved in production of goods or services and can also administer the operations of subsidiaries. In addition to them, it also allows your business to diversify the assets, mitigate risks, and increase profitability. You can opt for this business structure for company formation in Dubai free zones or the mainland.

How to Start a Holding Company in Dubai?

If you are planning for business incorporation in Dubai, setting up a holding company can be profitable. With simplified licensing procedures and tax incentives, it is great to set up a holding company in Dubai. Commitbiz experts can help you with the entire process. Let us look at the involved steps:

Step 1: Choose Jurisdiction

If you are planning to set up a company in Dubai, there are two types of jurisdiction where you can establish a holding company. The first is the mainland, where a company enjoys operational freedom of conducting business across the UAE. The second is the free zone, where a holding company enables an investor to have complete ownership. Some major free zones where you can set up your holding company in Dubai are DMCC and DIFC.

Step 2: Identify Business Structure

Based on the number of shareholders and the nature of business, a legal structure must be chosen. Take professional help from Commitbiz experts to determine which business structure will suit your needs.

Step 3: Reserve Business Name

Choose a unique business name that complies with the naming conventions laid down by the Dubai Department of Economic Development (DED).

Step 4: Get Initial Approval

The next step involves obtaining an initial approval from the Dubai DED authorities. As part of this, a no-objection certificate will be issued allowing you to go ahead with the company formation process. Commitbiz experts can help you with the paperwork and get it done quickly.

Step 5: Arrange Documents

The next step is to arrange the required documents such as Memorandum of Association (MOA), Articles of Association (AOA), board resolution, power of attorney, and local sponsor agreement.

Step 6: Lease Office Space

To set up a holding company in Dubai, securing an office space is mandatory. Our experts can help in securing a work space that meets your requirements.

Step 7: Pay Fees and Obtain License

Our experts will help you submit all the necessary documents. Finally, make the required payment and obtain your business license with our expert help.

Why Set Up a Holding Company in Dubai?

Now that you know the involved process, let us look at the reasons for setting up a holding company in Dubai. Some of the compelling factors are listed below:

• Tax Incentives: It allows you to enjoy relatively lower taxes, including value added tax (VAT) and corporate tax.
• Asset Protection: The personal assets of the shareholders are not at risk in case of liabilities against the company as it offers limited liability protection.
• Simplified Management: Centralised decision-making and operational control allows efficient resource allocation across all subsidiaries.
• Risk Mitigation: Minimises the risk factor and ensures that the business is not exposed to high risks or debts of the subsidiaries.
• Robust Infrastructure: Enables the business to leverage Dubai’s state-of-the-art transportation and communication facilities.
• Easy Setup: Hassle-free setup with no requirement of paid-up share capital.

Why Choose Commitbiz?

To successfully set up a holding company in Dubai, it is important to be aware of the local regulations, identifying the jurisdiction, and working with trusted corporate service providers like Commitbiz. Our expert consultants can help you with the entire setup process to ensure everything is completed in a hassle-free manner. Contact us to set up a company in Dubai!