How to Setup Holding Company in Dubai ?

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Holding company un Dubai:

A holding company in Dubai is a type of business entity that owns and manages other companies.

The holding company does not typically engage in operational activities, but especially used to control and manage the companies it owns. This can include making strategic decisions, providing financial support and coordinating the activities of the subsidiary companies. Usually, holding companies are associated with large businesses.

Usually, the Holding company is used to buy domestic or commercial property or to invest in other structures inside or outside the UAE, If you are looking to setup holding company in Dubai here are the advantage of Holding registration in Dubai:

  1. Limited Liability: A holding company can provide limited liability protection for the shareholders of the subsidiary companies, limiting their financial exposure to the debts and liabilities of those companies.
  2. Tax Efficiency: The company helps to minimize the tax liabilities by allowing for income to be distributed among different subsidiaries in different jurisdictions.
  3. Centralized Management: the company can provide centralized management and control the activities of the subsidiary companies.
  4. Asset Protection: A holding company can help to protect assets by holding them in separate legal entities.
  5. Brand Protection: A holding company help to protect the brands and Intellectual properties of the subsidiary companies by keeping them separate from each other.
  6. Flexibility: A holding company structure is flexible as it allows for easy acquisition or divestment of subsidiary companies without affecting the holding company structure.
  7. Dubai holding companies also give to Investors entry into the local banking system, which means they can open a corporate account with a local bank and apply for loans, which can be used to invest in assets.

Different types of Holding companies.

In Dubai, there is a choice of three types of holding company.

  1. A free zone holding company: Limited liability company.
  2. A Mainland company: Limited liability company or public joint stock Company (PJSC).
  3. Offshore company usually used to hold properties.

Here is the guide steps to open a holding company in Dubai

  1. Choose a legal structure and jurisdiction of the company to be registered.
  2. Obtain commercial name: Apply for the name approval from the relevant authority.
  3. Apply for the Security approval and clearance.
  4. Obtain approvals: Obtain any necessary approvals or licenses from relevant government departments and agencies, such as the Dubai Municipality or the Dubai Chamber of Commerce.
  5. Notarize and legalize the company’s documents: Notarize and legalize the company’s documents with the relevant authorities.
  6. Providing the legal address of the company by renting / buying an office.
  7. Receiving the Trade license of the company and obtain a commercial registration.
  8. Set up a corporate bank account: Open a corporate bank account in the name of the holding company.
  9. Register for VAT: Register for value-added tax (VAT) with the Federal Tax Authority (FTA) if required.

Free Zone Market team will guide you through the latest government regulations regarding your Holding company registration. Get it in touch today with our Business setup Advisor and we’ll help you with detailed quotation at info@FreeZoneMarket.ae or call us on +971 4 876 9890

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