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Functions and Benefits of a Holding Company in UAE

Owner's Profile

Shabil Shukur K K

Published on December 12, 2023, 15:51:02


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In the UAE, a holding company has the power to manage and hold shares of other companies, real estate, and various assets such as stocks, bonds, and intellectual property.

Additionally, holding companies perform a variety of functions within a corporate group. A holding company can own the entirety of a subsidiary. Additionally, the parent company has the right to possess both physical and intellectual assets of its subsidiaries that are under its management and ownership.

A holding company is used to manage and safeguard your assets in the UAE. Numerous other advantages are also provided, including increased flexibility, reduced risk, no specific share capital requirements, tax efficiency, and increased subsidiary company diversity.

Benefits of Opening a Holding Company in the UAE

Dubai is a top destination for wealthy investors from all around the world looking to set up their presence in the UAE. With business-friendly policies, a liberal tax regime, a strong economy, state-of-the-art amenities, efficient e-governance, a thriving business ecosystem, free zones, and a secure environment. A holding company establishes a corporate group structure that shields private property from joint financial obligations. The main benefits are as follows:

  • Reduce operating expenses by consolidating property, equipment, and services.
  • Integrate the corporate group's strategic business objectives while preserving the unique advantages of each subsidiary brand or company.
  • Holding companies can secure loans and leverage cash for their subsidiaries at significantly higher rates.
  • Prevent financial and legal obligations among members of a company group, safeguarding products, patents, and trademarks.

Cost of Setting up a Holding Company

The cost of setting up a holding company in Dubai can vary based on multiple factors, but because they are established in free zones, the cost is generally lower than in other areas. The cost involves various components, such as obtaining a license, registering the company name, and, if necessary, obtaining a visa. It is vital to hire a lawyer in Dubai to set up a holding company and navigate the legal process with ease.

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