Dubai has been shifting gears from an oil-based economy to an entirely service-based system in recent years. This has transformed the region into a robust global marketplace brimming with business potential. As a result, investors worldwide are traveling to the area to take advantage of the lucrative business incentives. Setting up a holding company in Dubai offers benefits like tax exemption, safety, legal protections, and many local advantages.
Under the Dubai Company Act, overseas investors can open holding companies. However, a Dubai holding company isn't always authorized to perform certain business activities such as manufacturing. One of the crucial advantages of forming a holding company in the UAE is that it allows owners 100% ownership and control of their company.
Types of Holding Companies
There are two basic types of holding companies in the UAE:
- Onshore Holding Companies
- Free Zone Holding Companies
Depending on their business structure, a holding company must appoint one director. Foreign investors are also able to register partnerships as Holding companies in Dubai.
Advantages of Setting up Your Holding Company in the DIFC
There are many reasons that opening a business in Dubai can be a lucrative endeavor. Between expansive incentives and a business-friendly economy, this region offers:
- 100% foreign ownership is allowed.
- No restrictions on capital repatriation
- No restriction on foreign employees
- Zero tax for 50 years on profits, capital, or assets
- Zero tax on personal income
- High prominence in deal-making in the region
- The concentration of international financial institutions
- World-class regional and international professional services
- The leading fund domicile in the region
- Well-positioned to harness the potential of emerging markets
- Highly regarded, the independent regulator
- GCC Management offices, holding companies, and family offices are located closer to the assets they own or manage
- With the UAE becoming increasingly popular with expatriates as a promising destination for vacation and business, forming a holding company here makes perfect sense.
Registration of a Holding Company in Dubai
When forming a holding company in the UAE, there are a few things that you'll need to know:
1. Selecting the right location:
Any profitable business enterprise needs a proper location in Dubai. By choosing a good location, business owners can get the right clients and boost their sales. Therefore, it's vital to perform thorough research to select the right location for your business plans.
2. Registration Requirements:
Forming a business in Dubai is designed to be an easy, straightforward process, but it pays to have legal written agreements to protect your business if it encounters legal problems.
3. Choosing the Right Business Consultants in Dubai:
Many foreign investors aren't acutely aware of Dubai's business world's many policies and rules. Business consultant experts, like those at MSZ Consultancy, can help provide information on how to begin your shareholding business in Dubai. They have the experience and skills so you can invest your earnings wisely. They're also able to remove the headaches of running a business, like managing important business registrations and renewals.
4. Advantages of Having a UAE Holding Company
One of the most significant advantages of setting up a holding company in the UAE is being able to quickly open a bank account. Access to different financial products, such as loans and investment capital, is essential to getting your business off the ground.
Holding Company founders can choose from several different corporate structures that offer plenty of advantages. Additionally, if a business is set up in one of the UAE's Free Zones, 100% ownership is permitted along with zero tax responsibilities.
There are many reasons setting up a corporate presence in the UAE is a fantastic venture. It's a smooth and easy process that allows foreign investors to tap into an enormous international market with a diverse, skilled workforce and the benefits of a unique lifestyle. For those wanting to diversify their investment portfolios with a business in a secure, tax-free jurisdiction, Dubai is the place to be.
MSZ Corporate Services Providers are world-class business arrangement specialists in the UAE dedicated to helping business visionaries form their business in Dubai. Our experts are masters of their fields and can help make your business formation process stress-free. Give us a call today at +971 50 487 2208 for a free consultation!
Advantages of Setting up a Holding Company in the UAE
Let MSZ Consultancy help you deal with all your business setup needs. Our experts have experience assisting numerous organizations throughout the UAE using modern, cutting-edge marketing strategies that work for any sized business. Give us a call today to arrange a free consultation!
Frequently Asked Questions
When forming a company in Dubai, you’re bound to encounter a few questions. To help make the process easier, we’ve put together some of our customer’s most frequently asked questions:
1. What are the advantages of owning a holding company?
Holding companies enjoy reduced financial risks, asset protection, tax benefits, and easy regulations.
2. Does a holding company need a bank account?
Yes, your holding company will be required to have a bank account. You'll also need to maintain financial records for the company.
3. What are the different types of holding companies in the UAE?
In the UAE, there are two basic company formations for holding companies: Onshore holding and Free Zone holding companies.
4. Does a holding company need to be VAT registered?
Unless the holding company is included in a VAT group, it will need to have taxable business activities to be entitled to VAT registration.
5. Is ESR mandatory in the UAE?
Firms operating in Mainland, Free Zone Offshore, or any of the other financial Free Zones will need to file ESR in the UAE.
