One of the most common reasons for company registration in the UAE is opening a holding company in Dubai. This is mainly because the UAE provides a lot of perks for holding companies such as reliable international assets protection, tax exemption, and the chance to enter local exchanges.
Holding companies basically, are legal entities which are incorporated by either foreign or local investors to possess shares and other types of assets in other firms. The UAE permits the registration of different holding companies in the seven Emirates.
In Dubai, foreign investors can process holding company’s registration under various forms. But a holding company in Dubai isn’t allowed to do business activities like manufacturing goods or offering services. The key perk of establishing a holding company in Dubai is it allows the owner to have control of other firms.
Requirements for incorporating a holding company
Every company based in Dubai, holdings or not, should follow the rules under the Company Law. Holding companies should cover the following:
- Set a management board that will take charge of the creation of policies for the regulation and organization of the subsidiaries.
- This management board should oversee the activities of the subsidiaries.
- The holding companies’ shareholders should have a director in each subsidiary firm.
- The company should make sure that the subsidiaries have the required capital to operate successfully.
- The company should set limits in terms of the risks subsidiaries can take such as foreign currency and other industry risks.
- The holding makes the decisions in terms of arrangements and contracts of the subsidiaries.
Kinds of Dubai holding companies
We have 2 main types of holding companies here in Dubai: the free zone holding company and the onshore holding company.
If you’re going for the free zone holding company, you can enjoy 100% foreign ownership. For onshore holding companies, foreign investors should have a local partner that owns 51% of the company. It’s important to choose the type of holding company you want to operate before you register a holding company.
Frequently Asked Questions
Here are some of the frequently asked questions from local and foreign investors looking to establish a Dubai holding company:
- Is it okay to set up a holding company in Dubai even if I am not a local?
Yes. Foreign citizens can start a holding company in Dubai.
- Is it complicated to register the business?
Not really. The registration process is basically like registering any other kind of business in Dubai. But foreign investors should work with a local agent to accomplish the registration legalities and formalities.
- Is there a minimum share capital to open a holding company in Dubai?
No. There is no share capital requirement involved.
- Does it take long to register and set up a holding company in Dubai?
The registration should be complete in a matter of weeks. The actual setup stage depends on your business approach and other internal workings.
Setting up a holding company in Dubai is no rocket science, but for business owners who do not have the luxury of time to process everything all by themselves, it’s best to work with formation agents like the Business Link UAE to open a holding company in the UAE.
Business Link UAE takes you through all the steps and preparation needed to successfully set up your holding company in Dubai.
All you need to do is sit back, relax and focus on the more important parts of starting and growing your business. Delegation is key to free your time and work on the bigger picture. We will be your support until you successfully register and launch your holding company in Dubai.