How to Setup a Holding Company in Dubai?

by Zaara 16, Oct 2020

Most of the business owners today want to make sure that they lookout for the best opportunities that they can find to establish their business. From the past few years, Dubai has been shifting its gears from an oil-based economy to a service-based economy. Therefore you will find many new businesses and startups coming up here in the Middle-East rapidly. Setting up a holding company in Dubai offers a variety of advantages like exemption from taxation, reliable protection of foreign assets and the possibility of entering local advantages.

Under the Dubai Company Act, foreign investors are permitted to open a holding company under different forms. However, a Dubai Holding Company is not permitted to carry out business activities such as providing services or manufacturing goods. The essential advantage of the holding company is that it lets its owners in control of other companies.

Types of Holding Companies in Dubai

In Dubai, one can set up different types of holding companies such as –

  1. The Onshore Holding Company
  2. The Free Zone Holding Company

Depending on the business structure, the holding company must appoint at least one director or a board of directors. Foreign investors can also register partnerships as holding companies in Dubai.

Requirements for Establishing up a Holding Company in Dubai

Every Dubai based company, holding or not, must follow the rules under the Company Law. Holding Companies must cover the following –

  • Setting a management board that will be in charge of the creation of rules and regulations and organization of subsidiaries
  • The board will supervise the activities of the subsidiaries
  • The holding company shareholders must have a director in each subsidiary firm
  • The company must make sure that the subsidiaries have the much-needed capital to operate successfully
  • The company must set limits in terms of the risks subsidiaries can take such as foreign currency and other industry risks
  • The holding decides terms of arrangements and contracts of the subsidiaries

How to Register a Holding Company in Dubai?

Here are a few things to know before registering your Dubai Holding Company like –

1.Selecting a Right Location

A company needs to select the right location in Dubai so that it allows the company to get the right consumers and clients quickly to boost the business sales. Hence, research is essential to ensure that you buy the right location or rent it according to your business plans.

2.Requirements of Registration

There are no official necessities when you are starting your company in Dubai. Still, it is suggested that you have legal written agreements that can allow protecting your business when you are in legal problems. The written agreements and documents are like contracts among the stakeholders that are drafted to conform their terms to substantive matters.

3.Choosing the Right Business Consultant in Dubai

If you are not aware of the rules and regulations of the Dubai business world, then you will need to find a business consultant that can help you with the experience and expertise that they have. Many business advisory firms can offer you information on how you can start your shareholding company in Dubai and how you can invest your money in the right way. This will help you to get ahead with business registration and setup quickly rather than getting involved in all the complications that you might find strange.

Where can you Setup your Holding Business in Dubai?

One of the best places to set up your holding company in Dubai is the Dubai International Financial Centre (DIFC). It is a leading financial hub in the region for fintech, business, and lifestyle. DIFC holding companies can be used to hold assets within the Emirates, the GCC, or anywhere else globally. These include real property and shares in other companies in the UAE and worldwide.

Advantages of Setting up your Holding Company in DIFC

  • 100% foreign ownership is allowed
  • No restrictions on capital repatriation
  • No restriction on foreign employees
  • Zero tax for 50 years on profits, capital or assets
  • Zero tax on personal income
  • High prominence in deal-making in the region
  • The concentration of international financial institutions
  • World-class regional and international professional services
  • The leading fund domicile in the region
  • Well-positioned to harness the potential of emerging markets
  • Highly regarded, the independent regulator
  • GCC Management offices, holding companies and family offices are located closer to the assets they own or manage

With the United Arab Emirates becoming more and more popular with ex-pats as a place to live and work, owning a property through a holding company makes good business sense in more ways than one.

We at Commitbiz can help you open a holding company in Dubai. Right from business incorporation to office space, we cover it all. Contact us today for more information.