If you want to start your own company in Dubai, you need to know the company registration process. Because lots of benefits are offered to foreign investors in the UAE. They are even encouraged to begin their start-ups, rather than working for other businessmen. The gulf countries offer lots of opportunities for entrepreneurs with extra tax relaxation, to live their dreams of company set-up.

In Dubai, foreign investors are allowed to set-up both offshore and onshore companies. They can even run their own business by holding company registration in Dubai. However, this kind of entity doesn’t permit commercial activities, as only limited to owning shares in other organizations. One of the greatest benefits of holding companies is to bound the risks of shareholders. This even permits them to possess shares in more than one organization.

Also, holding companies are preferred by foreign investors for tax exemptions they enjoy in Dubai. One of the key benefits of holding a company in Dubai is that it permits the control of other organizations.

Types of Holding Companies in Dubai

One of the greatest benefits of holding company set-up in Dubai is that the local government allows various legal entities to be incorporated simultaneously. There are two main types of holding companies allowed in Dubai, which are as follows-

  • Onshore Holding Companies
  • Free Zone Holding Companies

 

To register an onshore holding company in Dubai, the foreign investors need to have local partners who will own 51% shares of the company. However, free zone holding companies in Dubai permits foreign investors to have 100% ownership. If you’re looking for assistance in holding company registration in Dubai, you can hire the services of expert registration agents.

Requirements for Registration of Holding Company in Dubai

All Dubai-based companies must follow the rules and regulations imposed by the Company Law. However, foreign investors ready to invest in holding companies must ensure the following-

  • It should develop a management board that will take responsibility for the company’s policy creations and organizes subsidiaries.
  • The management board should supervise the activities of the subsidiaries.
  • The shareholders of the company must appoint directors in each subsidiary company.
  • The company should ensure that the subsidiaries have the required capital to carry out trading.
  • The holding company must ensure limits on risks the subsidiaries can take, like market, foreign currency, and industrial risks.
  • The company will make decisions in terms of arrangements for the subsidiaries.

So, if you’ve decided to set up holding companies in Dubai, you should take assistance from local advisors, for proper set-up.

Benefits of Holding Company in Dubai

One of the noted advantages of holding company set-up in Dubai is taxation. The local government did not enforce any corporate taxes on this kind of company. Also, the following kind of companies can be used for the registration process-

  • Joint Stock Companies
  • Limited Liability Companies
  • Partnership Companies
  • Free Zone Holding Companies

Also, there’s no minimal share capital needed for opening limited liability companies in Dubai. Whereas, the minimum amount of capital required to open joint-stock companies is 10 million AED. The holding companies can even be registered within a few weeks in Dubai.

In short, there are numerous advantages of holding company set-up in Dubai, both for local and foreign investors.