Holding companies are legal entities incorporated by local or foreign investors with the aim of possessing shares or other assets in other companies. The UAE allows the incorporation of holding companies in all its Emirates. Under the Dubai Company Act, foreign investors are allowed to register holding companies under different forms. However, a Dubai holding company is not allowed to carry out business activities such as providing services or manufacturing goods. The main advantage of the holding company is that it lets its owner in control of other companies.
One of the greatest advantages of setting up a holding company in Dubai is that the local Government allows for a wide variety of legal entities to be incorporated as such. There are two large categories of holding companies in Dubai:
In order to register an onshore holding company a foreign investor must have a local partner who will own 51% of the company. Holding companies in Dubai free zones, however, are allowed to have 100% foreign ownership. If you need assistance in setting up a holding company in Dubai, you can request the services of our company registration agents.
For more information on Dubai holding companies, please watch the video below:
Like any other Dubai company, the holding company must have a director or a management board depending on its type. The company management must set out the regulations of the holding company and supervise its activity. Considering holding companies may also open subsidiaries in Dubai, the management is also in charge with their supervision. The management must also ensure the holding company has the necessary capital to operate.
Taxation is perhaps the best advantage of opening a holding company in Dubai: the Government levies no corporate taxes. Also, the following types of entities can be used to set up holding companies in Dubai:
There are no minimum share capital requirements for opening limited liability companies, while for joint stock companies the minimum amount accepted is 10 million AED.
You can contact our company formation agents in Dubai for more reasons to open holding companies in the UAE.