4 Jun 2025
By Vista CorpDid you know that almost 60% of Fortune 500 companies operate through holding structures? Yes! Unlike an operating company, a holding company doesn’t run on daily operations. Instead, it owns shares and has subsidiaries offering a strategic advantage. Wondering how to set up a holding company in Dubai? Dubai is one of the top destinations to set up a holding company due to its world-class infrastructure, numerous tax benefits, and 100% ownership. Businesses and individuals with high net worth prefer a holding company to protect their assets and run multiple ventures under one license. It’s an ideal choice for long-term growth.
The guide below will help you with all the information you need for a holding company setup in Dubai, including benefits, step-by-step process, free zone, mainland, structure, and everything else. Let’s dive in!
What is a Holding Company?
As per Wikipedia, “A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to create a corporate group.” Understand this with an Example: Imagine an entrepreneur named Uday owns three different ventures in Dubai, including a restaurant, real estate, and an e-commerce business.
Now, rather than managing three enterprises separately under different licenses, Uday plans a holding company called Uday Group Holdings. Now, the Uday Group Holdings doesn’t sell food, rent homes, or sell products directly. Instead, it owns and manages all these businesses separately, and each business is called a subsidiary.
What are the benefits?
- The holding company earns all the profit.
- If one venture faces some risk, the others are safe. The holding company is not collectively liable for risks.
- It’s easy to manage taxes and other legal compliance.
- Investment planning & passing assets to the next generation become easier.
Benefits of Setting Up a Holding Company in Dubai?
Setting up a holding company in Dubai offers multiple advantages, including tax efficiency, asset protection, and more. Know more benefits of a holding company in Dubai below:
1. Asset Protection
In a holding company structure in the UAE, your assets remain protected. This is because each of the subsidiaries of a holding company is a separate legal venture. If one faces risks or debts, the others are not impacted. Your personal assets are also safe.
The parent/holding company controls all its investments but is not held responsible for any liabilities the subsidiaries may have.
2. Tax Benefits
Dubai’s tax-friendly environment is the centre of attention. The ROI gets a major boost with no personal income tax. You can also enjoy 0% corporate tax if you qualify.
Additionally, the double taxation treaties between the countries also save the investor from paying taxes twice on the profits and money earned. You grow faster!
3. Global Market Access
The amalgamation of Dubai’s strategic location and a holding company’s flexibility to operate internationally opens the door for the global market with vast potential. Manage your global operations seamlessly with Dubai’s world-class infrastructure & logistics network to make things even easier.
4. Centralised Control
It’s easier to run, manage, and control a holding company in Dubai. With a single license, you can undertake multiple operations with faster decisions, better resource utilisation, and a well-organised venture system. This ensures centralised control within and outside the business, wherever required.
5. Flexible Ownership
In a UAE business setup, you get flexibility in ownership. You own 100% of your business without the need for a local partner in a free zone. In fact, for a holding company, there are mainland areas where you get major control over your business. Pick options that best fit your business goals and ownership preferences you may have.
6. Succession Planning and Wealth Management
A holding company allows easy and hassle-free planning & wealth management. You can easily transfer the company’s ownership and pass on your wealth to the next generation in an organised way. It makes long-term planning smoother and stress-free.
Legal Structures for Dubai Holding Companies and Advantages of Each
| Structure Type | Full Form | Ownership | Key Benefits | Best For |
| LLC | Limited Liability Company | Up to 100% foreign ownership (depending on activity & location) | – Limited liability for owners- Suitable for both local and international operations- Can hold assets and shares in other companies | Entrepreneurs, family businesses, small-to-medium investment groups |
| PJSC | Public Joint Stock Company | Requires 5+ founders and a minimum capital of AED 30 million | – Ideal for large-scale operations- Can raise funds via public share offerings- Strong governance and investor credibility | Large investment firms, listed entities, and IPO planning |
| Free Zone | FZC or FZE (Free Zone Establishment/Company) | 100% foreign ownership allowed | – Full control with no need for a local partner- Tax benefits and repatriation of capital- Faster registration process | International investors, single-owner groups, HNWIs, and asset protection |
| Branch Office | Extension of a foreign or UAE company | No separate legal identity | – An easy way to expand an existing business- Operates under the parent company license- No extra capital requirement | Foreign companies looking to enter the UAE with full parent company control. |
How Long Does it Take to Register a Holding Company?
Jurisdiction, legal structures, and documents are three main factors deciding the time required to register a holding company in Dubai. It usually takes around 7 days to a month.
- In the case of a free zone company, when all legal documents are ready, it will take around 5-10 business days.
- For a mainland holding company, the time frame is usually between 10-15 business days because there are external approvals involved.
Tips to fast-track the setup
There are many free zones offering fast-track business set up, which will take around 2-3 business days. How?
- 100% digital applications
- Pre-approved structures
- Companies with simple ownership setups
Holding Company Setup in a Dubai Free Zone vs the Mainland
The table below will help you understand the mainland vs free zone companies in Dubai from a setup perspective. Read carefully!
| Feature | Free Zone Holding Company | Mainland Holding Company |
| Ownership | 100% foreign ownership allowed | 100% foreign ownership allowed (in most activities) |
| Scope of Operation | Can only operate within the Free Zone or internationally | Can operate anywhere in the UAE and internationally |
| Business Activities | Mainly for asset holding, investments, and subsidiary ownership | Similar, but with more flexibility to directly manage local operations |
| Office Requirement | A flexi-desk or virtual office is usually accepted | Physical office space required |
| Taxation | 0% corporate tax (if qualifying under Free Zone regulations); subject to UAE Corporate Tax if non-qualifying | Subject to 9% UAE Corporate Tax on income above the threshold |
| Regulatory Authority | Respective Free Zone Authority (e.g., DMCC, JAFZA, IFZA) | Dubai Department of Economy and Tourism (DET) |
| Audit Requirement | Depends on the Free Zone; it is often mandatory annually | Mandatory for most mainland companies |
| Cost of Setup | Generally lower setup and renewal costs | Higher due to office space, licensing, and regulatory fees |
| Banking & Repatriation | Easy repatriation of profits; bank account opening may vary by Free Zone | Easier access to UAE banking and better financial credibility |
| Reputation & Credibility | Good for international structuring | Stronger local presence and higher credibility in the UAE market |
- If you want to keep the cost low, choose a free zone.
- If you want to trade and operate across the UAE, choose a mainland.
Dubai vs Abu Dhabi for Holding Company Setup
Are you wondering if Dubai or Abu Dhabi is the right location to set up a holding company? The comparison table below will help you make an informed choice:
| Factor | Dubai | Abu Dhabi |
| Business Environment | • Highly diversified economy — strong in finance, trade, logistics, tourism, tech.• Hosts leading free zones like DIFC, DMCC, and JAFZA, tailored for global investors. | • Sector-focused on energy, manufacturing, and innovation.• ADGM is a key free zone for finance and holding structures. |
| Setup Costs | • Generally higher due to premium infrastructure and licensing fees. | • More cost-effective setup options are available. |
| Ownership Flexibility | • Allows 100% foreign ownership in most mainland and all free zone structures.• Wide choice of corporate structures for local and international control. | • Also offers 100% foreign ownership across key sectors.• Promotes strategic partnerships, especially in industrial and innovation-driven sectors. |
| Free Zones & Mainland Options | • Over 30+ free zones offering sector-specific benefits.• Dubai Mainland allows a broader activity scope and local market access. | • Fewer but well-developed zones like ADGM and KIZAD.• Abu Dhabi Mainland suits businesses tied to local contracts and government tenders. |
| Office Space Options | • Offers flexible office types: flexi-desks, shared spaces, and high-end commercial offices.• Mandatory office requirement in many jurisdictions. | • Competitive office rentals with incentives in industrial zones.• Remote/flexi-desk setups are allowed in some free zones. |
| Strategic Location | • Global business hub with direct access to international markets.• World-class ports and airports (e.g., Jebel Ali, DXB). | • Strong presence in regional trade (MENA focus).• Proximity to emerging African and Asian markets with growing logistics support. |
| Regulatory Framework | • Regulated by DED (mainland) and individual free zones.• Transparent and business-friendly legal system under UAE federal laws. | • Regulated by ADDED and ADGM.• Known for proactive governance and modernised commercial laws aligning with international best practices. |
| Taxation | Free zone companies can benefit from exemptions if the qualifying conditions are met. | • Similar 9% tax regime.• Incentives available for companies in priority sectors (like renewable energy, industrial tech). |
| Time to Incorporate | • Average setup time is 5–10 working days if documents are complete.• Faster if working with experienced service providers. | • Similar incorporation timeline.• ADGM and KIZAD offer streamlined digital processes for faster registration. |
| Industry Alignment | • Ideal for finance, tech, global trade, real estate, and asset holding firms.• Many family businesses choose Dubai for its legal and support structure. | • Strong fit for industrial, energy, and innovation-driven holdings.• Often chosen for long-term strategic investment entities. |
Step-by-Step Guide to Register a Holding Company in Dubai
Registering a holding company in Dubai requires the right implementation followed by careful planning. The step-by-step guide below will help you ensure that the setup is optimal. Structure your holding company with the right approach:
1. Choose a Jurisdiction
The process begins with choosing a jurisdiction based on your holding business’s goals from options available, like the Free Zone or the Mainland. Both options have their sets of pros to consider.
- A free zone allows 100% foreign ownership with tax benefits like no personal income tax.
- The mainland setup means access to a broader market & local credibility.
The initial step is vital for a sustainable and visionary business planning in a land of opportunity like Dubai.
2. Choose the Right Legal Structure
Setting up a holding company in Dubai requires choosing the right legal structure. LLC and PJSC are the two main options to choose from. LLC stands for Limited Liability Company, and PJSC stands for Private Joint Stock Company.
- If your business vision is to go public with your company in the future, opt for PJSC.
- If you are aiming at flexibility in management and profit distribution, go for an LLC legal structure.
Remember, whatever choice you make, it will have an impact on ownership rules, liability, governance, etc. Therefore, get in touch with a legal advisor to make an informed choice.
3. Define Business Activities
Specifically define all business activities the company will be involved in, like managing investments, controlling shares, and others. Defining the activities is crucial to choosing the right license & legal structure, along with ensuring your operations fully comply with UAE regulations.
Failing to do so may lead to unnecessary delays and limitations while you set up your holding company in Dubai or during its expansion.
4. Comply With Legal Requirements for Holding Company in Dubai
The next step is to prepare all the legal documents, like the MOA and AOA, with proper authorisation. Each document must fully comply with the UAE regulations & Economic Substance Requirements.
To ensure everything goes smoothly and avoid costly errors, take help from professionals.
5. Get all the Required Licenses
Now, when you have decided on the jurisdiction, defined business activities, and prepared all the legal documents, apply for all the required licenses. While applying, you must fulfil all the requirements of the regulatory authority. To operate a holding company legally in the UAE, licenses are non-negotiable. Furthermore, license renewal is another major factor to consider before the expiry date.
Pro Tip: Cross-check each and every document before the final submission.
6. Open a Corporate Bank Account
For efficient business financial management in Dubai, open a corporate bank account. To overcome delays, prepare all the required documents in advance. A business bank account is mandatory for fund management and to maintain accurate financial records.
Pro Tip: Choose the right bank from the many options available.
7. Lease Office Space or Virtual Address
Based on the jurisdiction you choose, lease an office space or have a virtual address. Free zones offer options like flexi desks or virtual office space. These options come with low setup costs and are ideal for businesses with no strict requirements for a physical space to undertake operations. A mainland holding company setup will require a physical space.
It’s mandatory to have an office space as per the rules to get your trade license and complete the registration process.
8. Appoint Key Team Members
A company comprises directors, shareholders, and management team members, with each of them having a clear view of what’s expected of them. Appoint all the key members in your holding company and assign them roles clearly. Discuss what responsibilities each member has to avoid any confusion in business operations.
9. Establish Subsidiary
After your parent holding company is established, set up its subsidiaries. Each subsidiary will handle a different part of your business, and you have to decide the percentage of ownership the holding company will have in each one. The manager for each subsidiary should be informed of the roles and plans for how the subsidiary will run.
10. Develop a Good Reporting System For all Subsidiaries
Develop a strong reporting system for all the subsidiaries for finance, government, and other management operations using reliable accounting software. Ensure the software is easy to understand with simple yet effective features, aligning with the purpose for use they are intended. Train your staff and follow up to ensure there are no errors and everyone is familiar with the system.
It makes it easier to track performance and implement smarter decisions for the future.
5 Tips for Choosing the Right Jurisdiction for a Holding Company
A holding company’s jurisdiction has a direct impact on its tax rules, growth, and legal protection. Therefore, make an informed and wiser choice. Here are 5 tips to consider:
Tip #1: Tax Benefits
Opt for a jurisdiction with no liability for corporate tax and capital gains tax. It directly impacts the company’s ROI on the higher side.
Tip #2: Ease of Business Setup
Setting up a business in Dubai can be complicated, but different jurisdictions have different setup rules and processes. Choose one with fewer paperwork, fewer formalities, and a fast setup for a smooth and seamless holding company setup in Dubai free zone vs the mainland.
Tip #3: Reputation
For global expansion, you must choose a jurisdiction with a positive international reputation. It further helps with bank processes, partnering with global clients, and companies.
Tip #4: Operational Flexibility
Operational flexibility in a holding company is non-negotiable. It’s also crucial to plan family wealth and succession transfer. Therefore, look for a jurisdiction with structuring flexibility.
Tip #5: Favorable Legal & Regulatory Environment
Pick a jurisdiction with a favourable legal & regulatory environment because a stable business environment reduces risks and delays.
Requirements to Set Up a Holding Company in Dubai
To successfully set up a holding company in Dubai, you must have all the legal and other documents required. Follow every step of the process carefully so there are no delays and unwanted rejections. The documents you need to present depend on whether it’s for individual or corporate entities. Dubai Holding Company requirements are as follows:
For Individuals:
- Valid passport copies of all shareholders and directors
- Proof of residential address
- UAE visa and Emirates ID (if applicable)
- Professional resume of shareholders
- UBO Declaration letter
- Comprehensive business plan
- Three proposed company names
For Corporate Entities:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Board resolution authorising the holding company
- Power of Attorney (if required)
- Managing Director’s passport copy
- Corporate proof of address
- UBO Declaration letter
- Detailed business plan
- Three proposed company names
How to Open a Holding Company Bank Account in the UAE?
To open a holding company bank account in Dubai, follow the steps below:
1. Choose a Bank Account
Choose a bank with features matching your business needs. Emirates NBD, Mashreq, RAKBANK, FAB, and HSBC are some of the best options to consider in the UAE. Carefully check factors like minimum balance requirements, services offered, and more.
2. Fully Register Your Holding Company
Before you apply for a corporate bank account, ensure your holding company is fully and legally registered in a mainland or a free zone. Have all the required licenses in place, like the MOA, trade license, Ejari, and others.
3. Have all the Documents Ready
Documents include:
- Valid trade license
- MOA
- Passport copies of directors and shareholders
- Emirates ID & Residence Visa
- Company Stamp
- Proof of office address
- Corporate structure chart
- Business profile to understand the company and its subsidiaries.
4. Complete KYC
Complete “know your customers” forms that will include all the company-related information about the owners, source of funds, and business activities. It’s essential under UAE compliance laws.
5. Visit the Bank (If Required)
Some cases may require you to visit the bank personally with clear answers to questions they may have about the company’s structure, shareholders, purpose, activities, and others.
6. Wait for the Approval
Once you have provided everything to the bank, it will do some internal checks, which may take around 7-21 working days. If everything is in order and legally correct, you will get the final approval.
7. Account Activation & Access
After the final approval, you’ll get the account details and other accessories like the debit card and a chequebook if it’s requested. Also, as per the bank you choose, you may need to maintain a minimum balance.
Please note that you may also need to provide additional documents if you are establishing a new holding company from overseas.
7 Sponsorship and Ownership Rules for a Holding Company in Dubai
Before your holding company registration in Dubai, understand these 7 sponsorship and ownership rules for better implementation.
Rule #1: In a free zone, you can have 100% ownership of the company.
Rule #2: In the mainland too, now you can fully own your business, but not all. Some companies will require a local partner.
Rule #3: In the mainland jurisdiction, you will need an LSA, but they don’t hold shares. LSA stands for Local Service Agent.
Rule #4: Even though each subsidiary of a holding company is managed under one name, every subsidiary will be registered separately.
Rule #5: The holding company cannot undertake day-to-day operations.
Rule #6: For transparency and licensing, clearly declare the ownership percentages each shareholder has.
Rule #7: Your holding company can be owned by an international parent company. For such cases, extra documents are required.
Ongoing Compliance Requirements for Holding Companies in Dubai
To avoid penalties, adhere to these ongoing compliance requirements for a holding company in Dubai:
1. Annual Financial Audits
Preparing an annual financial audit from a registered audit firm in the UAE is mandatory for every holding company in Dubai each year. All the records should be accurate & compliant with UAE laws. If needed, you will also have to submit these financial records to the authorities of your chosen jurisdiction.
2. Economic Substance Regulations (ESR)
If your holding company earns income or profit from relevant activities like managing intellectual property, file an annual economic substance regulations notification. There are some special cases where there’s a need to submit a full ESR report. The primary purpose of an ESR is to provide proof that your business is involved in real operations & management within the United Arab Emirates. It’s mandatory to avoid fines.
3. Ultimate Beneficial Owner Disclosure (UBO Disclosure)
Keep records of individuals who will own or control the company, also known as UBO disclosure. If there are UBO changes, they must be reported to the authorities. It’s essential to keep business transparency intact and prevent money laundering.
4. Business License Renewal
Every company in the UAE, be it a holding or others, has to renew its licenses annually. It involves paying a renewal fee and updating documents, if any. Failing to renew licenses could lead to fines, in some cases, suspension of business operations.
5. Office Space Compliance
Every holding company in Dubai must have a registered office space. It can also be a virtual space if allowed by the free zone. During inspections, the authorities may ask for proof of office address, and failing to provide it may lead to serious repercussions.
6. Visa & Immigration Compliance
If your company has staff and provides visas, ensure all the visas are valid and renewed on time. The procedure includes everything from medical tests to the Emirates ID.
Holding Company vs Operating Company Set Up In Dubai
| Category | Holding Company | Operating Company |
| Definition | A legal entity that owns shares in other companies (subsidiaries) but does not produce goods or services directly. | A company that directly engages in commercial, trading, manufacturing, or service activities. |
| Primary Role | To manage, oversee, and control the financial and strategic decisions of subsidiary companies. | To carry out business operations and generate revenue through active involvement in the market. |
| Activities Allowed | Asset holding, investment management, intellectual property (IP) holding, real estate ownership, and company oversight. | Import/export, retail, consultancy, logistics, manufacturing, hospitality, healthcare, and other client-facing operations. |
| Revenue Generation | Earns income passively through dividends, capital appreciation, royalties, rental income, and interest. | Earns active income by selling goods or providing services directly to customers. |
| Business Structure | The parent company structure often owns 100% or majority shares of multiple subsidiaries but doesn’t involve itself in day-to-day operations. | Typically, a standalone entity focused on a single activity or industry, directly managed by founders or executive staff. |
| Ownership Flexibility | Offers easier succession planning, shareholding flexibility, and centralised ownership of diverse assets. | Owned by individuals or groups; changing ownership or control may be more complex. |
| Legal Liability | Reduced liability—risks are isolated at the subsidiary level. The holding company is legally separate from operational liabilities. | Higher liability—since the company is directly involved in operations, it bears full risk of business contracts and customer dealings. |
| Setup Purpose | Ideal for long-term investment strategy, legacy planning, asset protection, group management, and centralised control. | Suitable for running the actual business functions and serving customers in local or international markets. |
| Compliance & Regulations | Fewer regulatory obligations if non-operational; mainly focused on audits, shareholder records, and investment disclosures. | More complex compliance, including tax filings, employee visas, operational licenses, VAT registration, and reporting. |
| Tax Efficiency | Often used for tax structuring and benefits from double taxation avoidance treaties and reduced withholding tax on dividends. | Subject to VAT, corporate tax (if applicable), and other operational taxes depending on the business activity and revenue. |
| Office Space Requirement | Can operate with virtual offices or flexi-desks in free zones if not actively managing operations. | Must lease a physical office or warehouse, depending on the activity, especially in mainland setups. |
| Staff Requirement | May not require staff if it only functions as a holding entity; roles are typically at the board or strategic level. | Requires operational staff, sales teams, customer service, and technical staff to function daily. |
| Risk Management | Excellent for isolating and spreading risks across multiple subsidiaries. | Concentrates risk in a single legal entity, making it more vulnerable to market and legal challenges. |
| Reporting Structure | Focused on consolidated financials and strategic reporting. Requires high-level reporting, but less frequent than operational companies. | Requires monthly and quarterly operational reports, payroll processing, VAT returns, and real-time compliance checks. |
| Scalability | Highly scalable through acquisition, joint ventures, or launching new subsidiaries in different sectors or countries. | Can scale through branch expansion or franchising, but needs more effort to manage diverse operations under one structure. |
| Succession Planning | Easier to transfer shares, manage inheritance, and control wealth through structured holding layers and family trusts. | More difficult to divide or transfer due to direct involvement in operational matters and employee dependency. |
| Ideal For | Family offices, large investors, multinational businesses, real estate groups, IP asset holders, and companies managing portfolios. | Entrepreneurs, startups, traders, consultants, retail brands, and anyone delivering direct goods/services. |
| Control and Governance | Offers centralised governance over all subsidiary operations with minimal interference in daily activities. | Involves hands-on governance, where leadership makes direct decisions about operations, clients, products, and services. |
Dubai Holding Company & International Assets
Owning and managing international assets is one of the major benefits of a Dubai Holding Company. Why and How?
Zero Restrictions on Foreign Assets
You can legally own shares in overseas companies. This allows easy management of global operations from a holding company based in Dubai.
Double Taxation Avoidance Agreements (DTAAs)
The UAE has signed DTAAs with around 130+ countries. The agreement includes major economies like Europe, Asia, and North America. This saves you from paying income tax twice on the profits earned.
Free Zone Benefits
If your holding company is established in Dubai’s free zone, enjoy perks like:
- 100% foreign ownership
- Low setup cost.
- Easy process
- Less documentation
- Access to international banking
No Currency Control
Dubai doesn’t put a cap or restriction on how the money circulates in and out of the country. This means you can send money to other countries without many issues. Another advantage is that you can deal in different currencies without any restriction. The business gets financial freedom.
4 Best Free Zones for Holding Companies in Dubai
Looking for the best free zones for a Holding Company in Dubai? Here are the top 4 choices:
1. Dubai Multi Commodites Centre (DMCC)
DMCC is an award-winning free zone in Dubai for holding companies. It’s popular for its world-class infrastructure, a robust legal framework, and proximity to JLT. DMCC supports holding structures that own shares in subsidiaries, real estate, or intellectual property. If you are an investor or entrepreneur with a plan to manage diverse assets, DMCC’s business-friendly ecosystem & hassle-free company setup will make it easier for you.
2. Dubai International Financial Centre (DIFC)
A globally recognised regulatory framework based on common law makes DIFC an ideal financial free zone. For a finance-related holding business, like managing money, DIFC should be the first choice. Many big investors, banks, and wealthy families use DIFC. It offers a safe, professional, and well-organised setup, perfect for handling finances and growing a strong, trusted business.
3. Jebel Ali Free Zone (JAFZA)
JAFZA is one of the oldest free zones in Dubai, ideal for holding businesses with physical requirements like warehouses and factories. Due to its proximity to Jebel Ali Port & Al Maktoum Airport, it facilitates easy movement of goods in & out. If your business involves cross-border activities, JAFZA is the best option for you.
4. Meydan Free Zone
Are you on a budget but want to start your holding company in Dubai? Choose the Meydan Free Zone for cost-effective solutions. It’s best for small investors looking to manage IP, real estate, or other companies under a single holding structure. Proximity to Downtown Dubai, Meydan Free Zone offers amazing perks other than 100% foreign ownership, like no paid-up capital & digital-friendly services.
Family Wealth & Succession Planning for a Holding Company in Dubai
In a business, family wealth and succession planning are a crucial part. A holding company makes it easier. How? A holding company is a parent company that owns shares in its subsidiaries across multiple portfolios. By centralising ownership under one business name and structure, families can better manage wealth from various risks and family disputes. It also makes succession planning easier without hampering business operations.
Final Thoughts
A holding company set up in Dubai offers multiple advantages like asset protection, tax benefits, global market access, centralised control, flexible ownership, succession planning, and wealth management. Therefore, Dubai holding company formation is a smart choice for smart investors. The setup cost depends on the jurisdiction. For a free zone. Understand in detail how to set up a holding company in Dubai and put your best foot forward.
Partner with Vista Corporate Group for a smooth holding business set up in Dubai.
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FAQs
1. Dubai or Abu Dhabi? Which is better to set up a holding company?
Both Abu Dhabi and Dubai are ideal for setting up a holding company. These locations offer their own set of advantages that help you build successfully in the place of your choice.
Dubai offers:
- Free zone tax benefits of holding companies in Dubai, UAE.
- A Vibrant business ecosystem.
- A strong connectivity to global markets.
Abu Dhabi offers:
- A more flexible and relaxed business atmosphere.
- A strong focus on innovation.
- Many cost-effective options
- A favourable and strong financial sector.
The best location depends on what your business needs are.
2. Do I need a local sponsor for a Dubai holding company?
Yes, you need a local sponsor for an onshore Dubai holding company (generally). That would mean sharing your ownership with the sponsor. If you need 100% ownership, set up a holding company in one of Dubai’s free zones. These zones don’t require a local sponsor.
3. Which free zones are best for holding companies in Dubai?
Here’s a list of the 5 best free zones to set up a holding company in Dubai:
1. Dubai Multi Commodities Centre (DMCC)
Why? DMCC is a globally awarded free zone known for its flexible business environment and strong international banking.
2. Jebel Ali Free Zone (JAFZA)
Why? JAFZA is an ideal location for large holding structures with proximity to Jebel Ali Port. It also supports multi-business setups under one license.
3. Dubai South (formerly known as DWC)
Why? Dubai South provides modern infrastructure with affordable licensing & warehousing options. It’s best for investors planning real estate or aviation-linked subsidiaries.
4. International Free Zone Authority (IFZA)
Why? IFZA is reputed for its cost-effective business setups with minimal and simple licensing requirements for holding companies. The zone also allows multiple business activities under one license.
5. Ras Al Khaimah Economic Zone
Why? Ideal for SMEs & family-owned holding firms with 100% ownership and zero audit requirements for many activities.
4. What documents are required to open a holding company in Dubai?
For Individual Shareholders:
- A passport copy of all shareholders and directors
- Visa copy (if applicable)
- Emirates ID (if applicable)
- Proof of address
- Passport-size photograph
- Bank reference letter or 6-month bank statement
- CV or professional profile
For Corporate Shareholders:
- Certificate of Incorporation
- Memorandum & Articles of Association (MOA/AOA)
- Board Resolution
- Certificate of Good Standing
- Passport copies of company shareholders (if applicable)
- Power of Attorney
Additional Documents:
- Business activity description
- Office lease agreement or Ejari
- Application form (provided by the authority)
- NOC from current sponsor (if applicable)
5. What are the steps to register a holding company in Dubai?
Follow the steps below to register a holding company in Dubai:
Step 1: Clearly define your business objective, whether it will hold assets, shares, or intellectual property.
Step 2: Decide on the jurisdiction from the mainland, free zone, or Dubai offshore holding company based on the business’s goals.
Step 3: Select a company name that aligns with the UAE’s naming standards.
Step 4: Choose a legal structure, from an LLC, Private Limited, or others that may be applicable for you.
Step 5: Appoint directors & shareholders. Assign them key roles.
Step 6: Prepare all the documents required, including passport copies, MOA, board resolutions, etc.
Step 7: If you have appointed foreign corporate shareholders, ensure all the documents are legalised through UAE consulates.
Step 8: Submit your application to the designated authorities through DED or free zone authorities.
Step 9: Get all the initial approvals required.
Step 10: Next, proceed to signing all the legal documents like the MOA, shareholder agreement, and in some cases, a lease contract.
Step 11: Rent an office space as per the policies.
Step 12: Get your business license after paying the fees. Now you get your official holding company license.
Step 13: Open a corporate bank account.
Step 14: Start operations.
6. Can a holding company in Dubai open a corporate bank account?
Yes, a holding company in Dubai can open a corporate bank account, but the requirements and process depend on different factors like the company’s type and the bank you choose.
7. Can a Dubai holding company own international assets or companies?
Yes, a Dubai holding company operating especially in the DIFC or a free zone can own international assets or companies, including real property and shares in other companies. These jurisdictions have favourable environments and legal systems for owning international assets.
8. Cost of setting up a holding company in Dubai.
The cost of setting up a holding company in Dubai. It depends on different factors like the location, jurisdiction, licenses & other business requirements.
9. What is a holding company in Dubai?
A holding company is a special kind of business setup option in Dubai. It doesn’t directly offer services or sell products, but owns & manages shares in other companies. It works like a parent company that controls its subsidiaries’ operations, policies, and assets. The subsidiaries’ primary job is to plan and create a centralised structure to manage different investment types.
10. How long does it take to set up a holding company in Dubai?
If everything is in place and order, it will take around 5-15 business days to set up a holding company in Dubai. The period may be subject to change based on different factors like the jurisdiction, attestation, types of shareholders, and more.
11. Five Things to keep in mind while choosing the right jurisdiction for a Dubai holding company.
- The process for setting up a holding company in the free zone or the mainland varies, while both allow 100% foreign ownership. So, keep the ownership and process factor in mind.
- Whatever jurisdiction you choose, ensure it allows you to own shares and assets.
- If your business requires managing international investments, understand access to the UAE’s tax treaties.
- While setting up, understand all the rules that apply to audits, office space & reporting obligations.
- Analyse the setup and operational costs for both long-term and short-term.
12. What sectors are best for a holding company in Dubai?
Here are 7 sectors that are ideal for a holding company in Dubai:
- Real estate
- Technology
- E-Commerce
- Manufacturing
- Hospitality
- Healthcare
- Finance
13. What are the advantages of setting up a holding company in Dubai?
Below are some of the major advantages of setting up a holding company in Dubai:
- 100% foreign ownership.
- No personal income tax.
- No capital repatriation cap.
- No restrictions on foreign employees.
- Capitalisation through emerging markets.
- 0% tax for 50 years on profits, assets, and capital.
- Flexibility in business operations.
14. Can a Dubai holding company invest in real estate?
Yes, a Dubai holding company can invest in real estate; however, specific rules may apply, such as the location of the company’s registration or the property’s location. Align with the rules and invest smartly in real estate.
