Opening a holding company in Dubai: opportunities and considerations

Jan 08, 2024

Dubai, with its dynamic economy, business-friendly policies, and strategic location, attracts numerous entrepreneurs and investors worldwide. Establishing a holding company in Dubai can provide various strategic and fiscal advantages for those looking to expand their operations and diversify investments.

Why establish a holding company?

Creating a holding company holds operational and strategic advantages. It streamlines direction by centralizing decision-making, simplifying support functions.

Financially and legally, a holding company enhances negotiation power with banks for acquisitions or loans. It allows for shared ownership among stakeholders while shielding personal assets in case of bankruptcy.

From a tax perspective, a holding company reduces levies, increases free cash flow, and strengthens the group's investment capacity.

Why opt for a holding company in Dubai?

Fiscal and regulatory advantages: The United Arab Emirates (UAE) offers an appealing fiscal policy, with no corporate income tax for most activities, and no taxes on capital gains or capital transfers. This serves as a significant advantage for holding companies and investors.

Access to international markets: Dubai's strategic location provides privileged access to African, Asian, and European markets, making it an ideal commercial hub for business growth.

Cost sharing in investments: Dubai presents numerous investment opportunities. Forming a holding company allows pooling of investment capacity, sharing costs, and profits among shareholders.

Steps to create a holding company in Dubai:

Choosing the structure: Dubai offers various structures for holdings, including free zones and mainland companies. Free zones, with no corporate taxation, may be more tax-attractive.

Share capital: Depending on the chosen location, a minimum share capital may be required. In some free zones, its actual deposit might not be necessary.

 

Establishing a holding company in Dubai offers numerous advantages, demanding meticulous planning and an in-depth understanding of local regulations. To ensure compliance and operational success, our team is ready to assist in implementing your project, providing strategic and operational support for your triumph.



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