Holding Company in Dubai
A holding company is a legal corporation that is created purposely to hold, possess and control the shares of other companies. Holding companies are therefore legal entities that are incorporated by either local or foreign investors with the sole purpose of owning shares or other assets in other companies. In the UAE, incorporation of holding companies is allowed in all the emirates including Dubai. Dubai Company Act allows foreign investors to incorporate holding companies in Dubai under different forms although the holding companies in Dubai are not authorized to carry out business activities live service provision or manufacturing of goods. The main advantage of the holding company in Dubai is that it allows the owners have control in other companies in Dubai.
Types of holding companies in Dubai
One of the most significant advantages of incorporating a holding company in Dubai is that incorporation of a wide variety of legal entities is allowed by the local government the local Government allows. The two types of holding companies in Dubai are:
- The onshore holding company,
- The free zone holding company
Incorporating an onshore holding company in Dubai by a foreign investor, there must be a local partner who owns at least 51% of the company’s shares. However, incorporating a free zone holding companies in Dubai, foreign investors are allowed to have 100% ownership of the holding company in Dubai. If you need assistance in setting up a holding company in Dubai, you can request the services of our specialists in company registration in Dubai.
The functions of holding companies in Dubai
Like any other company in Dubai, the holding company must have directors or a management board. The company management sets out the regulations of the holding company in Dubai and manages its operations. Holding companies may incorporate other subsidiaries in Dubai; the management is also in charge of the supervision of the subsidiary companies in Dubai. The management must also ensure the holding company in Dubai has the necessary capital to operate.
The advantages of holding companies in Dubai
One of the greatest advantages of a holding company in Dubai is taxation. The UAE government levies no corporate taxes in companies in Dubai. In setting up a holding company in Dubai, the following types of entities can be used:
- Limited liability companies,
- Joint stock companies,
- Free zone companies
There are no limitations for minimum share capital when opening limited liability companies in Dubai, while for joint stock companies in Dubai the minimum amount accepted is 10 million AED.
You can contact our experts in Quantum Auditing for more reasons to open holding companies in Dubai.