How to Set Up Your Own Holding Business in Dubai
Effortlessly Initiate Holding Company
United Arab Emirates – a big name and prominent place for businesses and trades to operate. But do you know who makes it possible – The Holding Companies?
Here, we are going to completely guide you on how to set up Dubai holding company. The structure of a holding company is opted by several categories of entrepreneurs even many times, individual entrepreneurs go with this one. Dubai Holding Companies offer tons of benefits including managing businesses, and their assets, and keeping companies away from liabilities. It is not a tricky task to start a Dubai Holding Company. It just needs guidance from the right people which Quick Ventures can load you with.
Read this article completely to understand the procedure of set up Dubai holding company,
What Holding Companies are?
A holding company works to own businesses. The prime work of a Dubai Holding Company is to cater to businesses with a tax-savvy structure to assist them in possessing assets like properties and subsidiary companies. Also, it lets businesses limit their liability.
Functions & Operations of a Dubai Holding Company
Certain functions of a Holding Company in Dubai include holding shares in their other subsidiaries, business assets, etc. The core functions of a holding company are property, ownership of assets, and intellectual property. However, these are not allowed to indulge in operational activities such as goods production, or asset management directly.
The stakeholders or business owners get the assistance of limiting their liabilities whereas the operation is led by the hired board of shareholders which structures the subsidiary’s ownership, keeps track of performance, takes care of financial viability, takes merger decisions, and records the sales on assets.
Do these Holding Companies have any specific types too?
Yes, Of course! You can have either a Free Zone or a Mainland company set up in Dubai.
- Free Zones are the ones wherein foreign investors want to take 100% ownership and control of their holding company.
- Mainland Companies are the ones that operate in Dubai mainland, which requires an issued commercial license approved by the Department of Economic Development.
What are the benefits of initiating a Holding company in Dubai?
The UAE has been growing to an extent that it has become quite popular and advantageous for business to flourish. It is extremely profitable if you own property via a holding company since it offers innumerable benefits and opportunities because of its strategic geography as well as business-friendly policies.
Let us know some advantageous scopes of starting your holding company in Dubai which makes the process more exciting since it comes with loads of benefits.
- 100% foreign ownership
- foreign employees aren’t restricted
- share capital isn’t required
- provide your business with a shield of Risk mitigation to lessen the risks & debts
- The tax benefits of holding company in UAE such as 0% tax on personal income
- capital repatriation isn’t restricted
- Residency visa opportunities, as it safeguards your company assets and allows for property ownership under the company structure
- State-of-the-art professional services whether regional or international
- The strategic location that can harness the market potential
- located closer to the assets you own
Requirements & Cost for Starting a Dubai Holding Company
The holding companies or businesses based in Dubai have to follow some regulations which include;-
- Having a management board for setting up the policies for subsidiary companies
- Diminish taken risks by subsidiaries
- Having a separate director for every subsidiary
- Administer subsidiary activities
- Ensuring that the subsidiaries have adequate capital
You need a Visa package if starting a business from afresh. At the same time, if you already have an existing one, you can commence holding company in Dubai with a zero visa package that can cost you somewhere around AED 12,500. However, not having a visa can additionally cost you AED 1,850.
How to set up a Holding company in Dubai and what are the requirements?
It is not a hassle to start a holding company in Dubai. As I said before, you need the right people at the right time and we are the right platform for you. The process that we have designed is simple and easy. However, it takes a little time and patience to collect approvals and other necessary documents. First, you need to understand the regulations of the UAE which is why it is better to hire a business consultancy firm to equip you with the essential knowledge as well as procedures.
You need to be ready with the minimum capital to put into business while applying for legal documents and structures. It can also vary as per the free zone or mainland. Next, you need sponsorships locally who can hold 51% of the share in your business which can be negotiable in support of protecting your interests. as it depends upon your skills. Thirdly, visa requirements need to be fulfilled following the next process of compliance and regulations of the UAE which can’t be violated and lead to penalties for any failure of compliance. Office space is a must-have that has to be taken on lease to be present offline as marked essential by law. You also need financial statements to keep accurate track records for annual audits.
The registration process of a Dubai holding company includes several steps of planning, researching, selecting the activity for your business, choosing the trade you’ll deal in, choosing the type of company you would have, selecting the right strategic location as per your business, opting for the type of entity, and lastly submitting documents.
Quick Venture is a business owner’s first choice to start a business. We are a leading and trusted business setup firm in Dubai UAE offering company formation services at an affordable price in Dubai. People choose us for our assured quality and customer delightion. Our talented pool of experienced professionals is a state-of-the-art feature of Quick Ventures.
Contact us today for better information and solutions on establishing a holding company in the UAE.
