request a call
Every legal entity in the UAE is required to obtain a license to conduct specific activities, and establishing a holding company is no exception. You must secure the appropriate license to legally operate a holding company in the UAE.
01
Global Financial Hub
A leading center for business and finance.
02
Tax Advantages
Low corporate tax and no personal income tax.
03
Respected Jurisdiction
Predictable and business-friendly environment.
04
Flexible Regulations
Investor-friendly legal frameworks.
05
Market Access
Connect to capital markets and global businesses.
01
Activities under a holding license are limited to owning shares, providing financial assistance to subsidiaries, acquiring assets and intellectual property for their operations, supervising and managing subsidiaries.
02
Depending on the free zone, other activities can sometimes be combined with holding activities under the same license if required.
03
Holding companies can sponsor visas.
04
Renting office space is also required even though depending on a free zone it might be a flexi-desk.
01
SPVs function as passive holding companies.
02
In the UAE, SPVs can be established only in a few free zones. They are particularly cost-effective for ADGM and DIFC-based companies since they are cheaper to set up than holding companies and do not require office rental in these free zones.
03
SPVs are more restricted in purpose and cannot conduct operational business or sponsor visas.
04
Depending on the free zone, SPVs should appoint a registered corporate service provider.
01
In DIFC and ADGM, Prescribed Company (also known as Restricted Scope Company) is a corporate structure that provides enhanced confidentiality compared to other corporate entities in these free zones.
02
Prescribed Companies are not required to file or audit accounts, providing greater privacy compared to SPVs, which require full disclosure to the registrar both at formation and on an ongoing basis.
03
Benefit from lower incorporation fees.
01
Select Type of Holding Company
Depending on your objectives select the type of a holding company to set up: a regular Holding, an SPV or a Restricted Scope Company
02
Choose Jurisdiction
Depending on your choice of the type of a holding company you should choose to either set up in
When choosing a free zone, you should prioritize those that offer licenses for holding activities and provide flexible incorporation terms, such as generous visa quotas, remote office options, streamlined administrative support, and other advantageous features.To learn more about different free zones, press here.
03
Obtain Necessary License
A holding company, an SPV or a Restricted Scope Company license should be acquired to authorize the business to own shares, manage subsidiaries, and hold assets.
04
Open Bank Account
Once the holding company is established, the final step is to open a corporate bank account with a UAE bank. This can be particularly challenging, as holding activities are often categorized as high-risk. Additionally, banks may find holding companies less commercially appealing due to their typically low transaction volumes and limited turnover.
To read more about opening of a corporate bank account in the UAE, press here.
.svg)
-1.svg)
