Holding Company in Dubai

Holding Company in Dubai

Updated on Thursday 25th August 2016

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Holding-company-in-DubaiForeign investors can set up both onshore and offshore companies in Dubai. Another possibility of owning a business in Dubai is through a holding company. However, this type of entity does not allow the undertaking of commercial activities, as it is limited to owning shares in other companies. One of the greatest advantages of Dubai holding companies is that it limits the risks of shareholders and it allows them to own shares in more than one company. Also, when taking into consideration the tax advantages it provides, the holding company is the suitable choice for starting a business in the Emirates.

Our lawyers in Dubai can provide with more information about the advantages of holding companies.

Setting up a holding company in Dubai

The registration process of a Dubai holding company is the same as the incorporation of any other type of entity. One can register the following business forms as a holding company in Dubai:

  • -          limited liability companies;
  • -          joint stock companies;
  • -          free zone companies.

Depending on the structure employed, the holding company must appoint at least one director or a board of directors. In the case of joint stock companies registered as a holding company, the minimum share capital is 10 million AED.

Foreign investors can also register partnerships as holding companies in Dubai. In order to set up the company, one must draw up the Memorandum and Articles of Association and file them together copies after their identification documents with the Dubai Department of Economic Development. It must be noted that an UAE legal representative must be appointed in order to register the holding company in the Emirate.

We invite you to watch a video about the particularities of a holding company in Dubai

Functions of Dubai holding companies

The management board of the Dubai holding must make sure the company has enough capital to run its operations and must also ensure there are no risks associated to the day-to-day undertakings of the company, such as buying foreign currency. The board must also review and approve investment proposals and hire personnel for the company. Business contracts also fall under the supervision of the management board.

For assistance in registering a holding company, do not hesitate to contact our law firm in Dubai.