Start a holding company in Dubai to expand your business and secure your assets in one of the world's most investor-friendly markets. Dubai’s lively business environment offers numerous advantages, including tax exemptions, a booming location that connects global markets, and streamlined regulations.
A holding company allows you to control multiple businesses or investments under one corporate structure without direct operational involvement. Whether you're managing assets, shares, or subsidiaries, Dubai's business-friendly policies provide an ideal platform for business growth and financial protection.
Dubai's standing as a global financial hub continues to rise. According to Dubai FDI, the emirate attracted AED 84 billion in foreign direct investment (FDI) in the first half of 2023.
What is a Holding Company?
A holding company is a business entity that owns and manages assets, shares, or interests in other companies without directly engaging in their day-to-day operations. When you start a holding company in Dubai, you can control multiple businesses under one umbrella while taking advantage of Dubai’s tax benefits and business-friendly environment.
This setup allows you to streamline operations, reduce risks, and easily manage subsidiaries, investments, or real estate. It’s an ideal structure for entrepreneurs looking to diversify and expand their business ventures while benefiting from Dubai's strategic location and thriving economy.
Benefits of Holding Company in the UAE
Starting a holding company in the UAE offers numerous benefits for businesses and investors looking to expand and protect their assets. Here are some of the key benefits:
1. Asset Protection
A holding company separates ownership and control. It helps safeguard your assets from legal claims or financial risks associated with individual subsidiaries.
2. Tax Efficiency
The UAE provides favourable tax conditions, including exemptions on income taxes and capital gains in certain free zones. This allows holding companies to maximise profitability.
3. Centralised Control
A holding company enables streamlined management by consolidating control of multiple businesses or investments under one corporate structure. It makes it easier to oversee various entities.
4. Risk Mitigation
By isolating liabilities within individual subsidiaries, a holding company protects its other assets and ventures from the financial problems of one particular entity.
5. International Expansion
The UAE’s strategic location, excellent infrastructure, and investor-friendly policies make it an ideal base for businesses looking to enter global markets. Holding companies here can efficiently manage international operations.
6. Access to Global Markets
Setting up a holding company in Dubai or other parts of the UAE allows easy access to the Middle East, Africa, and Asia. Additionally, it offers significant opportunities for business growth.
Starting a holding company in Dubai or the UAE provides a solid foundation for long-term growth, risk management, and efficient business operations, all within a favourable legal and tax framework.Activities Permitted for Holding Companies in Dubai
In Dubai, holding companies are permitted to engage in various activities, primarily focused on managing and overseeing investments in other businesses. Here are the key activities that holding companies can undertake:
- Ownership of Subsidiaries
- Investment in Assets
- Management and Administrative Services
- Intellectual Property Management
- Financial Services
- Tax Optimization
- Asset Protection
- Receiving Dividends
- Corporate Restructuring
- Consultancy and Advisory Services
Licensing and Regulatory Considerations
You must obtain the appropriate license to start a Holding Company in Dubai. This can be through the Department of Economic Development (DED) for mainland companies or specific free zone authorities. The license type will depend on the activities the holding company intends to engage in.
It’s essential to consult with a legal or business advisor, just like Shuraa's business setup, who is familiar with UAE laws and regulations to ensure compliance and optimise the structure of the holding company.
Varieties of Setting up Holding a Company in Dubai
When setting up a holding company in Dubai, you have several options depending on your business goals and operational needs. Here are the main varieties:
Limited Liability Company (LLC)
This is a popular choice for small and medium-sized enterprises (SMEs) looking to start a holding company in Dubai. An LLC holding company allows you to control assets and subsidiaries within the UAE while benefiting from Dubai's favourable tax environment.
The minimum capital requirement for establishing an LLC is typically AED 150,000*. It makes it accessible for businesses aiming for local operations or asset management within the UAE.
Free Zone Company
A Free Zone holding company is registered in one of Dubai’s numerous free trade zones. This option offers attractive benefits such as 100% foreign ownership, tax exemptions (including personal and income taxes), and less stringent regulations.
It’s ideal for businesses focused on international trade or those looking to leverage Dubai’s free zones for tax efficiency and easy market access.
Offshore Company
An offshore holding company is registered in a jurisdiction outside of the UAE, but it can be used to hold assets or manage international business operations. This type of company is typically established for asset protection, tax optimisation, or to manage offshore investments.
Although offshore companies cannot conduct business within the UAE, they are popular for businesses managing global portfolios or international assets from Dubai.
Each of these structures caters to different business strategies, offering flexibility and a range of benefits depending on your operational needs, geographic focus, and financial objectives.
Process of Starting a Holding Company in Dubai, UAE
Setting up a holding company in Dubai requires several vital steps to ensure compliance with local regulations and business laws.
Step 1: Select a Holding Company Name
The first step in setting up a holding company in Dubai is selecting a business name that aligns with your brand or vision.
Make sure the name is available in your chosen jurisdiction, whether on the mainland or in a free zone, and comply with Dubai’s naming regulations. Avoid prohibiting offensive or inappropriate terms.
Step 2: Submit Articles of Incorporation
Once you’ve chosen your business name, you’ll need to file the articles of incorporation with the relevant state agency. This document outlines the legal structure of your holding company, including its purpose, ownership, and how it will be governed.
Whether you register your company in Dubai's mainland or one of its free zones, the incorporation process ensures that the government officially recognises your holding company.
Step 3: Obtain Necessary Licenses and Permits
Every holding company in Dubai must acquire the required licenses, depending on the nature of its ownership and its assets.
You’ll need a commercial license specific to a holding company. If your company is based in a free zone, you may benefit from simplified procedures and fewer regulatory hurdles.
Step 4: Draft Bylaws & Host a Meeting
Drafting bylaws is essential to establishing the internal framework of your holding company. These rules govern how the company will be run, covering everything from leadership responsibilities to decision-making processes.
After creating your bylaws, you’ll need to hold an organisational meeting to approve these bylaws and officially elect company leadership.Step 5: Issue Shares and Elect Leaders
For a holding company, issuing shares or membership interests is crucial in defining ownership and the rights of shareholders or members. At this stage, you’ll also elect the leadership team, which typically includes directors or managers overseeing the holding company's operations and its subsidiaries.Step 6: Invest in Other Companies
The final step in setting up a holding company in Dubai involves acquiring stock or ownership interests in other companies. By doing this, your holding company becomes the parent company. It also provides centralised control over various subsidiaries or assets while maximising tax efficiency and limiting liabilities. If you need help with any of the abovementioned steps, contact our Shuraa business setup experts.Documents required for Setup holding company in UAE
The following are the required documents needed for the holding company in UAE:- Trade License
- Passport Copies
- Visa Documents
- Lease Agreement
- Power of Attorney
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Costs of Establishing a Holding Company in UAE
The cost of a holding company in the UAE starts at AED 12,500* to AED 50,000 This fee includes various startup expenses. If you need extra visas, there is an additional fee of AED 4,500* per visa. For the total cost and any other fees, contact our Shuraa Business Setup team.Start a Holding Company in Dubai with Shuraa!
Starting a holding company in Dubai is smart for anyone looking to expand their business and protect their assets.
Dubai offers a welcoming environment for investors, with benefits like low taxes, an excellent location for global trade, and supportive regulations. Setting up a holding company allows you to manage multiple businesses or investments more effectively and reduce risks.
Shuraa Business Setup can help you every step of the way in obtaining your Holding Company License in Dubai.
Our experienced team will assist you with choosing a business name, preparing the necessary documents, and securing the proper licenses. With our support, you can focus on growing your business while we handle the details.
