Holding Company Setup in Dubai | Dubiz setup

If you wish to expand your business and secure your assets, a holding company setup in Dubai is the smart solution. The Emirates has one of the world’s most investor-friendly markets and a lively business environment that offers numerous advantages, including a booming location, access to global markets, and streamlined regulations. The business-friendly policies provide an ideal platform for managing assets, shares, or subsidiaries by setting up a holding company in Dubai. A holding company can be opened in either a freezone or the mainland, and offers investor better control over investments and operations under one umbrella.

1. HOLDING COMPANY SETUP
IN DUBAI

2. If you wish to expand your business and secure your assets, a holding
company setup in Dubai is the smart solution. The Emirates has one of
the world’s most investor-friendly markets and a lively business
environment that offers numerous advantages, including a booming
location, access to global markets, and streamlined regulations.
The business-friendly policies provide an ideal platform for managing
assets, shares, or subsidiaries by setting up a holding company in
Dubai. A holding company can be opened in either a freezone or the
mainland, and offers investor better control over investments and
operations under one umbrella.
This guide will walk you through everything including meaning of a
holding company in Dubai, key benefits and the process to start one.

3. What is a Holding Company
in Dubai, UAE: Explained
A holding company is a legal entity that manages assets, shares, or interests in
other companies without directly engaging in their day-to-day operations, such
as selling products or services, manufacturing activities, and other direct business
operations.
It enables entrepreneurs to control multiple entities or investments under one
corporate structure while leveraging tax benefits and the business-friendly
environment in Dubai. Through a holding company setup in Dubai, entrepreneurs
can streamline operations, reduce risks, and easily manage subsidiaries and
investments, while diversifying and expanding their business ventures in its
thriving economy.
A holding company license in Dubai helps them manage multiple investments
and assets efficiently and achieve their strategic objectives, thereby driving
growth.

4. Uses and functions of
Holding companies in Dubai are allowed to engage in various activities, including :
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
Holding companies are used across various industries, especially by large enterprises
with diverse product lines, such as FMCG companies producing skincare, hair care, and
other products.
HOLDING COMPANY IN DUBAI
In fact, many publicly traded firms are structured as holding ventures, allowing for
simplified management with one central company supervising several subsidiaries, where
each entity operates independently. On the other hand, small companies and individual
entrepreneurs also benefit from these structures.
Let’s learn about the function of a holding company with a few examples:-
An entrepreneur who wishes to earn rental income from an apartment building may
establish an LLC to own the building and a holding company to own the LLC.
Similarly, if a business owner wants to expand operations, they could set up a holding
company to raise capital by selling shares, funding new ventures, etc.

5. What are the key
BENEFITS OF OPENING A HOLDING COMPANY IN UAE
Starting a holding company in Dubai offers numerous benefits for those looking to expand and protect their assets.
Asset Protection : A holding company safeguards the assets from financial risks
associated with individual subsidiaries by separating ownership and control.
Tax Efficiency : The favorable tax conditions in Dubai allow holding companies to
maximize profitability.
Centralized Control : A holding company streamlines management by
combining control of multiple businesses under one entity.

Risk Mitigation : A holding company isolates liabilities within individual
subsidiaries and protects other assets and ventures from the financial problems.
International Expansion : With a strategic location, excellent infrastructure, and
investor-friendly policies, the UAE provides an ideal base for holding companies
looking to enter global markets and manage international operations efficiently.
Access to Global Markets : Through a holding company setup in Dubai,
business owners can have easy access to the Middle East, Africa, and Asia,
availing significant opportunities for business growth.
Access to Free Zones and Mainland Options : Dubai is home to diverse business
jurisdictions offering unmatched flexibility, 100% foreign ownership, expanded
access to local and GCC markets, and various tax exemptions. This allows
holding companies to optimize their structure while maximizing benefits.

6. Structures for Limited Liability Company (LLC) : LLC is a popular choice for small and
medium-sized enterprises (SMEs) that allow control of assets and
subsidiaries within the UAE. Besides, there is usually no minimum
capital requirement for LLCs holding company setup in Dubai, making
it accessible for those aiming for asset management within the UAE.
Free Zone Company : A holding company in Dubai free zone can enjoy
attractive benefits such as 100% foreign ownership, tax exemptions, and
minimal stringent regulations, and focus on leveraging the tax
efficiency and easy market access of Free Zones.
Offshore Company : Although an offshore holding company is
registered outside of the UAE and outlawed from conducting business
within the country, it can be used for asset protection, tax optimization,
offshore investment management, or international business
operations.
Depending on the business goals and operational needs, business owners
can choose a structure for their holding company in Dubai:
STARTING A HOLDING COMPANY IN DUBAI
Since each structure caters to different business strategies, business owners
must understand their operational needs, geographic focus, and financial
objectives to leverage the flexibility and a range of benefits offered in Dubai.

7. STEP-BY-STEP PROCEDURE TO START A HOLDING COMPANY IN DUBAI
A holding company setup in Dubai requires careful planning and implementation. The process
involves a series of steps that ensure that the setup is optimal and working in your favour.
Step 1. Choose the Jurisdiction
Based on your business goals and
requirements, select a jurisdiction
between Free Zone and Mainland.
While Free Zones offer complete
foreign ownership and several
distinct advantages, the Mainland
provides broader market access and
credibility.
Step 2. Define Business Activities
and register trade nameDefine the intended business activities for
proper licensing and to ensure
compliance with local regulations. For
example, managing investments, holding
intellectual property, or controlling
subsidiaries.

Also, choose a suitable name and get it
registered with the authorities.
Step 3. Comply with Legal
Requirements
Arrange and authorize all the legal
documents, including the Memorandum
of Association and Articles of Association.
Also, make sure that they fully comply
with the UAE regulations. Seeking
professional help from Dubiz can save
you from filling in the wrong information
and getting rejected.

8. Step 4. Obtain the Required
Licenses
Once you have defined your business
activities and selected a jurisdiction,
apply for a holding company license
in Dubai by fulfilling all the
requirements of the regulatory
authority. Make sure to cross-check
every document before submission
and renew the license consistently
before its expiry.
Step 5. Open a Corporate Bank
Account
A corporate bank account in Dubai helps
manage business finances effectively
and maintain accurate financial records
of all business transactions. Therefore,
choose a reliable bank that aligns with
your financial needs and banking goals.
Accordingly, prepare all the documents
and submit them to the bank officials.
Step 6. Appoint Key Personnel
The key personnel required for a holding
company may include directors,
shareholders, and management team
members who are well-qualified in their
field. Provide a clear view of their role and
responsibilities, and what is expected of
them.
Step 7. Establish Subsidiaries
Set up subsidiary companies that will be
owned by the holding company. Plan the
ownership percentage of each
subsidiary, and create management
roles and operational frameworks for
seamless operations. Also, make sure
that each company fully understands its
purpose and keeps proper records of
ownership
Step 8. Implement Reporting
Mechanism
Develop strict and clear systems for
financial reporting, governance, and
management of all subsidiaries.
Implement a good accounting software
and reporting rules, and train the staff
about their reporting duties. Make sure to
review the reports regularly for full
compliance.

9. Key requirements to set up
The documentation requirements for a holding company setup in Dubai vary based on the
applicant, whether it is an individual or a corporate entity:
Passport copies of all shareholders and
directors
Proof of residential address (utility bill or
bank statement)
UAE visa and Emirates ID
Professional resume/CV of shareholders
UBO Declaration letter
All-inclusive business plan
Proposed company names (at least
three)
For Individuals:
HOLDING COMPANY IN DUBAI
Certificate of Incorporation
Memorandum of Association and
Articles of Association
Board resolution authorizing the
establishment of the holding company
Power of Attorney (if required)
A passport copy of the Managing
Director
Proof of address
UBO Declaration letter
Comprehensive business plan
Three proposed company names
For Corporate Entities:
Please note documents can vary based on your business needs. We can help you with more
detailed information, so please contact us.

10. Cost involved in a
Freezone
The cost of a holding company setup depends on the specific setup, location, and visa
requirements. The common costs involved in the Mainland and Free zone setup are as
follows:
Mainland
Trade name registration: AED 735*
Trade name registration (Arabic): AED 10500*
Additional cost for holding/investment activity:
AED 15000*
Initial approval: AED 235*
MOA: AED 1000*
Investor visa and status change: AED 3000*
Medical test: AED 400*
Biometrics scanning: AED 400*
HOLDING COMPANY SETUP IN DUBAI
Since the office space is mandatory in the Mainland company
setup the cost may vary depending on the location and size of
the acquired space.
Free zone setup package
generally starts at AED
12900*, exclusive of visa,
and the additional costs
are also waived off.
Please note that costs can vary*

11. Conclusion
Within Dubai’s welcoming environment, low taxes, excellent location, and
supportive regulations, starting a holding company can be a smart choice,
especially for those looking to expand their business and protect their assets.
A holding company setup in Dubai not only helps manage multiple businesses
and investments but also preserves the overall financial health of the company
through strategic distribution of financial and legal risks.
However, the setup process might entail certain complexities, especially for
those who are unfamiliar with UAE business laws.

12. Start your holding company
Dubiz will assist you every step of the way, helping
you prepare the necessary documents and secure
the proper approvals for your Holding company
license in Dubai. With the support of their
professional experts, you can focus on establishing
your holding company in Dubai and growing it
competently.
WITH DUBIZ

13. [phone]
dubiz.co
[email protected]
Office number 2908, Al Manara Tower,
Business Bay Dubai.
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