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Everything you need to know about Setting up of Holding Company in UAE

By Ananya - 18 Nov 2021 Last Updated: 27 Jul 2022
Everything you need to know about Setting up of Holding Company in UAE

Table of Contents 

  1. 1. Requirements for Setting Up a Holding Company in the UAE
  2. 2. Different Holding Company Types in the UAE
  3. 3. Benefits of Holding Companies in the UAE
  4. 4. Conclusion

A holding company is an association of smaller businesses engaged in diverse industries and linked together. The primary business entity would have significant shareholdings and a strong presence in the enterprises' business environments. However, the holding company is not permitted to direct their business operations, issue policy directives, develop a retail enterprise, or engage in commercial activity.

In the United Arab Emirates, holding companies Dubai are structured similarly to those in other parts of the world. The companies with holding company licences would be categorized under a certain category. Due to these odd circumstances, the holding company's owners are not permitted to sponsor individuals or provide employment visa.

It is desirable for entities to have a strong financial position, perform indifferent about shifting economic scenarios, take decisions without much hesitation, and choose merging in the future by becoming a holding company.

Requirements for Setting Up a Holding Company in the UAE

The government of Dubai and other UAE emirates has established precise guidelines for starting a holding company. After confirming that the business satisfies all standards, a UAE holding company licence will be granted. The rules and specifications contain the following:

  • A board of management is required for a holding company in order to develop shared policies for its subsidiaries.
  • Every subsidiary company must appoint a representative director from the controlling company.
  • The holding company should properly oversee all business operations carried out by the subsidiary firms.
  • Risks associated with the industry, such as stock market involvement and accepting foreign capital, must be curbed by holding company directives.
  • The holding company is responsible for ensuring that the subsidiary companies have sufficient capital.
  • The holding company would make the final determination regarding the contracts and agreements entered into by the companies.

Our qualified staff will work with you to complete the holding company's incorporation and complete the necessary paperwork for a holding company licence in the United Arab Emirates. Contact us right away.

Different Holding Company Types in the UAE

Different business entities may be incorporated by a holding company in Dubai or the UAE. The holding company has the best potential for growth because it has the option of holding shares in several businesses. Investment diversification is one of the most fruitful and beneficial business strategies, as is well recognized.

The holding company could be:

  • Onshore Holding Company
  • Free Zone holding company

Holding companies are often created by conglomerates and multinational corporations to manage several industry sectors. By doing this, large organizations may dominate nearly all areas without being directly involved or feeling the pressure of running a firm every day.

At the same time, residents and expats alike can set up holding companies in the UAE. To make the process of forming a holding company in Dubai simple and practical, extensive knowledge and detailed information may be essential. Feasibility studies could also be required to avoid making bad decisions while starting a firm. For the formation of a holding company in Dubai or another UAE region, we may be your best option.

To discuss the establishment of a holding company in the UAE, contact us right now.

Benefits of Holding Companies in the UAE

Numerous advantages come with setting up a holding company in the UAE. These consist of:

  • The owner is qualified to apply for a resident visa.
  • Fastest business establishment
  • There is no business tax.
  • Holding corporations are excluded from paying VAT.
  • Paid-up share capital is not necessary
  • Holding Company has access to UAE financial infrastructure and financing possibilities. to finance further enterprises
  • Complete discretion with regard to investing
  • The subsidiary companies bear no risk or accountability for the debts.

Conclusion

Dhanguard invites you to start your entrepreneurial adventure in the UAE. In the past years, we have been able to assist numerous expats in realizing their aspirations. Our path is energized by the good identity that was developed throughout that time.

Our strengths are highly experienced professionals. They would significantly contribute to the success of your project and the advancement of your company. You can rely on us to give you the best help possible.

Contact Dhanguard right once to discuss how to establish a company in UAE.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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