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What is a Holding Company?

A holding company, also known as a parent company, is a business entity that owns things like real estate, intellectual property, trademarks, stocks of other companies, and more. It doesn't involve itself in the daily operations or management of these assets or businesses; its primary role is to control them.

The Advantages of a Holding Company in the UAE

Setting up a holding company in Dubai, UAE, offers several benefits:

Tax Benefits

Dubai has a relatively low tax regime, even with the introduction of 5% VAT and 9% corporate tax. This makes it cost-effective to run a holding company in Dubai.

Liability Protection

Holding companies in Dubai provide robust protection against liabilities. They are not accountable for the debts paid by their associates.

Risk Reduction

A holding company in Dubai aids in risk reduction, ensuring your business is not exposed to the risks or debts of its subsidiaries.

Strategic Location

Dubai's strategic location as a significant business hub in the Middle East offers unmatched connectivity to key markets in Asia, Africa, and Europe.

Government Support

The Dubai government actively encourages foreign investment, providing a range of incentives and support to facilitate the establishment and growth of companies.

Diverse Workforce

Dubai boasts a diverse and highly skilled workforce, simplifying the recruitment of talent essential for supporting your business operations.

Types of Holding Companies in Dubai

Limited Liability Company (LLC)

LLCs are popular among small and medium-sized businesses due to their flexible structure and minimal capital requirement.

Free Zone Company

Registered in one of Dubai's free trade zones, these companies benefit from exemptions on specific taxes and regulations.

Offshore Company

Registered in a jurisdiction outside of the UAE, these companies are typically used for holding assets or conducting international business.

Prerequisites for Setting up a Holding Company in Dubai

• Appoint a management board
• Supervise subsidiary activities
• Appoint directors for subsidiaries
• Verify capital availability
• Implement risk mitigation strategies

Registration Process of a Holding Company in Dubai

The process of registering a holding company in Dubai includes:

• Choose a business name and confirm its availability
• File articles of incorporation with the state agency
• Obtain necessary licenses and permits
• Create bylaws and hold an organizational meeting
• IIssue shares or membership interests and elect leadership
• Acquire stock or interests of other companies

Purposes of a Holding Company in Dubai

A holding company primarily serves the role of holding shares in subsidiary companies or owning assets. Business owners often establish holding companies to limit liability.

Operational Mechanism of Holding Companies in Dubai

Holding companies in Dubai function through the appointment of a shareholder board. This board determines the ownership structure among its subsidiaries and votes on crucial matters.

Startup Expenses for a Holding Company in Dubai

If you already have an existing visa in the UAE, you can launch your holding company in the Shuraa Business Setup Free Zone using their zero-visa package.

Why Choose Helen and Sons for Your Business Setup in Dubai?

At Helen and Sons, we offer comprehensive assistance throughout the entire company formation process in Dubai. Our experienced team can expedite the formation process, allowing your business to be up and running within a few days. For more information on how we can help with your business setup in Dubai, contact us today.

Conclusion

Setting up a holding company in Dubai, UAE, offers several advantages. Whether you are a local or foreign investor, this business structure can provide you with tax benefits, liability protection, and risk reduction. However, it's important to understand the registration process and meet all prerequisites. With the right guidance and support from Helen and Sons, your business setup in Dubai can be a smooth and successful process.

How To Set Up A Holding Company In Dubai

Establishing an Holding Companyy in Dubai can be easy with the help of experienced professionals. Helen & Sons Consultancy offers business setup services and customized packages. Their team of experts can guide you through the process.

To take advantage of their expertise and receive a free consultation, contact HELEN & SONS CONSULTANCY:

Phone: +97150 874 7419

Email: info@helensonsuae.com

Address: SAIF Suite Y30, SAIF Zone, Sharjah-UAE