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Setting Up a Holding Company in the UAE

There are a variety of establishments to select from when you want to establish your business in the United Arab Emirates. However, if you want to begin a business to buy real estate or invest in other corporate units, then setting up a holding company in the UAE, would be a very suitable choice for your venture. Establishing a holding company provides a range of benefits such as free from taxation, trusted security of overseas assets, and the probability of accessing local benefits. Below we mentioned a little guide on opening a holding company in UAE that will help you to understand the vital factors regarding the same.

Under the UAE company Act, overseas business people are allowed to start a holding company under various forms. However, a holding company is not allowed to carry out business activities like giving or manufacturing commodities. The necessary benefit of a holding company is that it gives its owners control over other companies.

What is a Holding Company

A holding company acts as a parent company that doesn’t manufacture or sell anything of its own. The company’s purpose is to own stakes in other companies, controlling stakes or membership interests in other companies to build a corporate group. Holding companies profit from the purchase and sale of assets, services, benefits from earnings, and stakes in stocks.

When you possess a license for a holding company, the activities of your business are listed as “activities of holding companies”. Below this license, you are only allowed to hold shares and assets. There is no active management, planning, and strategy involved in the activity of this business. It is possible to have a corporate bank account with this company; however, you as a holder of a holding company license are not able to sponsor employment and resident visa if this is an offshore company.

Types of Holding Company in the UAE

You can establish different kinds of holding companies in the UAE like –

  • The onshore holding company
  • The free zone holding company

Based on the business framework, the holding company should hire at least 1 director. Overseas business people can also register partnerships as holding companies in the United Arab Emirates.

The Steps to Setting up a Holding Company in the UAE

In order to holding company setup in Dubai or the UAE, you need to comply with three simple steps that are –

1. Select a Right Location

A company requires to choose the right and appropriate location in the UAE; This permits the company to receive the right clients and consumers in a quick way to promote the business sales. Therefore, research is necessary to make sure that you purchase or rent the right space as per your business schemes or plans.

2. Requirements of Registration

There are no official requirements when you begin your enterprise in the UAE. Yet, it is advisable that you have a valid written contract that can permit you to secure your business if you run into legal issues. The written contracts and documents are such as contracts between the shareholders that are drawn up to make their terms consistent with the original matters.

3. Choosing the Right Business Consultant in the UAE

If you have no knowledge of the rules and regulations of the business world in the UAE, then you would require to look for a business setup consultant who can assist you with the expertise and experience they have. Several business consulting firms can provide details on how you can setup your holding company in the UAE and invest your funds properly. It would assist you to process business registration and establish faster instead of getting engaged in all the complexities that may seem awkward to you.

Benefits of Setting up a Holding Company in the UAE

The benefits of establishing a holding company in the UAE are given below –

  1. 100% overseas ownership of the company is permitted
  2. Free from capital repatriation restriction
  3. No restriction on overseas workers
  4. No tax for 50 years on capital and profits
  5. No tax on personal income
  6. Higher prominence in deal0making in the region
  7. The attention of international financial institutions
  8. Amazing international and regional professional services
  9. The advance fund residence in the sector
  10. Well-status to provide the potential of rising markets
  11. Extremely considered, the independent control
  12. GCC administration offices, family offices, and holding companies are based close to the property they manage or own.

The procedure of establishing a holding company in the UAE seems very smooth and easy. However, it does take a deep look at the lawful rules and regulations of the UAE. This is also suggestible to seek the help of the best business setup consultants such as Start Any Business, who can’t just advise on the procedure but also have peace of mind that your application is free from mistakes, which would cause setbacks and rejections.

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