Set Up a Holding Company in Dubai
A holding company in Dubai is best suited for entrepreneurs who want to accumulate income from other business structures, intellectual property rights / ownership of movable / immovable property in one holding company.
The main difference between a holding company and other types of companies is that this organization is not engaged in operating activities, but is only a beneficiary of the activities of other companies that are part of the holding structure.
In addition to the above-mentioned purposes of establishing a holding company, we can highlight such general advantages as confidentiality, the possibility of using local justice, asset protection.
An advantage such as simpler management should be highlighted, as centralized management of assets within a single holding company makes coordination and control much easier. This becomes relevant when assets are spread across different businesses and jurisdictions, which can complicate management and decision-making.
In this regard, setting up a holding company in a foreign jurisdiction is a complex process that requires a high level of professionalism. ITA Business Consultants offers expert legal support for seamless company registration, specializing in holding companies and local regulations. Our experienced team provides tailored solutions, guiding you through the registration process, licensing requirements, and strategic planning to ensure compliance and maximize benefits in Dubai.
Benefits of Registration Holding Company in Dubai
100% Foreign Ownership;
Tax exemption;
No minimum paid-up share capital;
No requirement to have an office;
Simple Banking;
Long-Term Residence Visa;
Efficient Management of Subsidiaries;
Access to global market;
Fast and Simple company incorporation procedures;
Types of Holding Companies in Dubai
Holding Company in Dubai Free Zone
Holding Company in Dubai Mainland
Free zone companies allow for 100% foreign ownership, although their ability to directly access the local market is limited. These establishments provide investors with appealing benefits, such as the ability to live and work in the UAE and serve clients abroad. However, they cannot fully engage in the local market, which remains a capability reserved for mainland companies. The regulatory bodies for free zone entities are the respective registrars of the free zones.
Setting up a holding company in Dubai Mainland offers various benefits. This type of company can own shares, manage the assets of subsidiaries and control real estate or other investments without engaging in direct commercial activities such as manufacturing or trading. The incorporation process must comply with Department of Economic Development (DED) requirements. A holding company provides entrepreneurs with a solid structure to effectively manage a portfolio of assets and investments. It is important to note that a mainland company is authorized to do business within the UAE, while companies registered in the free zone can only operate outside the country. However, mainland companies are subject to stricter corporate and tax requirements.
How to Structure a Holding Company in Dubai?
An important restriction on the registration of a holding company is the activity restriction. Based on current legislation, a holding company cannot engage in active operations, for example, it cannot engage in trading activities. It is important to understand that the activities of such a company should be limited to receiving income from the activities of its subsidiaries.
Also, before registering a company you need to decide whether you need a P.O. Box, as the postal address will be listed on the license. A P.O. Box may be useful for opening a bank account, as bank documents will be sent to you by mail. In case the planned activity of the company meets the above criterion, you need to:
- 01
Choose a company name and type of company (mainland or free zone). If you do not plan to conduct activities on the mainland, you can choose a free zone. To register a company, you need to choose 2-3 names in order of priority (the name of the client consists of the name chosen by you, then comes the name of the activity group to which your activity belongs and at the end there must be an indication of the legal form of the company).
- 02
Get a license. All companies in the UAE must obtain a license to conduct activities, and each type of activity requires a corresponding type of license.
- 03
Select the legal form. This issue should be approached responsibly, as different organizational and legal forms will be subject to various legislative requirements.
- 04
Register the company name. The name of the company must be unique, and there is also a small list of prohibited names.
- 05
Prepare documents. You need to provide various documents as per the requirements of the chosen freezone \ mainland, which typically include incorporation documents and copies of shareholder’s passports;
- 06
Wait for approval and sign agreements. After applying for registration and having your documents checked, you’ll receive approval. This is when you also sign the rental agreement for office.
- 07
As a result of incorporation you will receive – License, Commercial Register, Dubai chamber Membership Certificate, Memorandum of Association.
- 08
Receive your business license.
- 09
Open a bank account.
In case you have any questions – our professional team of ITA Business Consultants with many years of successful experience will be glad to help you!
Why choose ITA Business Consultants
- We specialize in providing professional advice on establishing offshore companies (and not only these) in and outside the UAE;
- Our consultants expertly handle the entire registration process and further administration of the company (including tax advice, financial statements and audit);
- We help obtain UAE business licenses and visas, communicate with government authorities in various free zones;
- We assist with opening corporate and personal bank accounts, including pre-approval (15 banks in the UAE alone);
- We protect our clients’ data and privacy.
FAQ
Yes, as the UAE is a business-friendly environment, it is possible to open a bank account for a company with 100% foreign ownership (there are exceptions).
On average, the company registration procedure takes 4 weeks, however, this period may vary depending on the specifics of the company.
Redomicilliation of companies is allowed in the UAE.
Yes, this is an advantage of the UAE, FZ and mainland companies can be registered with full foreign ownership.
An investor visa or a work visa are normally issued for 2 years.
In order to incorporate a mainland company, the client must travel to the UAE for the procedure itself, whereby they will visit the DED (Department of Economic Development) with our colleagues in the UAE to carry out the registration process. Provided there is a UAE visitor’s stamp within the last 6 months, alternatively a company registration by power of attorney can be considered as an option.
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*The listed price does not include the state fees.