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Holding Setup

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company setup

Holding Company

Special Purpose Vehicles

Prescribed Companies

Foundation Setup

Main Corporate Services & Private Clients Corporate Setup Holding Setup

The main purpose of a holding company is to establish and oversee other entities, known as subsidiaries, to safeguard the group’s shareholders and assets from potential liabilities while streamlining and enhancing subsidiaries’ management and operations.

Every legal entity in the UAE is required to obtain a license to conduct specific activities, and establishing a holding company is no exception. You must secure the appropriate license to legally operate a holding company in the UAE.

Why Set Up a Holding in the UAE?

Global Financial Hub

A leading center for business and finance.

Tax Advantages

Low corporate tax and no personal income tax.

Respected Jurisdiction

Predictable and business-friendly environment.

Flexible Regulations

Investor-friendly legal frameworks.

Market Access

Connect to capital markets and global businesses.

Depending on the free zone, you can establish different types of holding companies, such as a regular Holding, a Special Purpose Vehicle (SPV), or a Prescribed Company.

Holding Company

Activities under a holding license are limited to owning shares, providing financial assistance to subsidiaries, acquiring assets and intellectual property for their operations, supervising and managing subsidiaries.

Depending on the free zone, other activities can sometimes be combined with holding activities under the same license if required.

Holding companies can sponsor visas.

Renting office space is also required even though depending on a free zone it might be a flexi-desk.

Special Purpose Vehicles

SPVs function as passive holding companies.

In the UAE, SPVs can be established only in a few free zones. They are particularly cost-effective for ADGM and DIFC-based companies since they are cheaper to set up than holding companies and do not require office rental in these free zones.

SPVs are more restricted in purpose and cannot conduct operational business or sponsor visas.

Depending on the free zone, SPVs should appoint a registered corporate service provider.

Prescribed Company

In DIFC and ADGM, Prescribed Company (also known as Restricted Scope Company) is a corporate structure that provides enhanced confidentiality compared to other corporate entities in these free zones.

Prescribed Companies are not required to file or audit accounts, providing greater privacy compared to SPVs, which require full disclosure to the registrar both at formation and on an ongoing basis.

Benefit from lower incorporation fees.

Choosing the Right Jurisdiction for Your Holding Company

Mainland Holding Companies

Mainland holding companies are established through the Department of Economic Development (DED) in each UAE Emirate. These entities offer full access to the UAE domestic market and the ability to conduct business directly with government entities.

Key Considerations:

Subject to UAE corporate tax (with exemptions for qualifying holding activities)
Requires compliance with annual auditing and financial reporting
Minimum capital requirements apply
Flexible business activities through subsidiaries

Ideal For: Business groups with predominantly UAE-based subsidiaries requiring direct market access.

DIFC Holding Companies

The Dubai International Financial Centre (DIFC) operates under an independent common law framework, making it a premier choice for international holding structures in Dubai.

Key Advantages:

0% corporate tax on qualifying activities
0% withholding tax on dividends and interest
English Common Law legal system
Multiple holding structures: Standard Holdings, SPVs, Prescribed Companies
Visa sponsorship capabilities
Access to DIFC Courts for dispute resolution

Ideal For: International investors seeking robust legal protection with Dubai-based holding structures.

ADGM Holding Companies

The Abu Dhabi Global Market (ADGM) offers flexible corporate structures with 100% foreign ownership in the UAE capital.

Two Main Structures:

Special Purpose Vehicle (SPV):

Passive holding structure with lower costs, no office requirement, and no employee sponsorship. Must demonstrate nexus to UAE/GCC through ownership, assets, or economic benefit.

Active Holding Company:

Hands-on management of subsidiaries with direct operational involvement and employee sponsorship capabilities.

Ideal For: Family offices, asset holding structures, and groups requiring active subsidiary management in the UAE.

RAK ICC Holding Companies

Ras Al Khaimah International Corporate Centre (RAK ICC) provides cost-effective UAE holding solutions with strong asset protection.

Key Features:

Restricted Purpose Company structure
Highly competitive setup and annual costs
Strong asset protection framework
Minimal disclosure requirements

Ideal For: Cost-conscious investors prioritizing asset protection in the UAE.

Quick Comparison: Which Structure Suits You?

Criteria	Holding Company	SPV	Prescribed Company
Setup Cost	Medium to High	Low	Low to Medium
Visa Sponsorship	Yes	No	Yes
Office Required	Yes (flexi-desk possible)	No (DIFC / ADGM)	Yes
Audit Required	Yes	Yes	No
Confidentiality	Standard	Standard	Enhanced
Best For	Active management, multiple activities	Passive holding, cost efficiency	Privacy-focused structures

Estimated Costs for Holding Setup

Setup costs vary depending on jurisdiction, structure type, and specific requirements. Below are approximate ranges:

Jurisdiction	Structure	Approximate Cost (USD)	Timeline
DIFC	Holding Company	From $15,000	2-4 weeks
DIFC	SPV	From $8,000	2-4 weeks
ADGM	Holding Company	From $12,000	2-4 weeks
ADGM	SPV	From $7,000	2-4 weeks
RAK ICC	Restricted Purpose	From $5,000	1-2 weeks
Mainland	Holding Company	From $10,000	3-4 weeks

Note: Costs include registration, license, and basic setup. Additional costs may include office rental, visas, bank account opening assistance, and ongoing compliance. Contact us for a detailed quote tailored to your needs.

Who Benefits from UAE Holding Structures?

International Trading Groups

Centralize ownership of multiple trading entities across different markets. Optimize cash flows, streamline inter-company transactions, and benefit from participation exemption on dividends from subsidiaries.

Investment Portfolios

Hold shares in multiple companies, real estate assets, or financial instruments. Protect personal wealth through a corporate structure with enhanced confidentiality and efficient succession planning.

Family Business Structures

Facilitate intergenerational wealth transfer and family governance. Separate ownership from management, protect family assets, and establish clear succession frameworks for multi-generational businesses.

Real Estate Holdings

Own and manage property portfolios across the UAE and internationally. Benefit from corporate ownership for easier transfers, improved tax efficiency, and liability protection for real estate investments.

How to Establish Holding Company?

Select Type of Holding Company

Depending on your objectives select the type of a holding company to set up: a regular Holding, an SPV or a Restricted Scope Company

Choose Jurisdiction

Depending on your choice of the type of a holding company you should choose to either set up in

Mainland for a Holding company or
One of the free zones which could license a Holding, an SPV or a Restricted Scope Company

When choosing a free zone, you should prioritize those that offer licenses for holding activities and provide flexible incorporation terms, such as generous visa quotas, remote office options, streamlined administrative support, and other advantageous features.To learn more about different free zones, press here.

Obtain Necessary License

A holding company, an SPV or a Restricted Scope Company license should be acquired to authorize the business to own shares, manage subsidiaries, and hold assets.

Open Bank Account

Once the holding company is established, the final step is to open a corporate bank account with a UAE bank. This can be particularly challenging, as holding activities are often categorized as high-risk. Additionally, banks may find holding companies less commercially appealing due to their typically low transaction volumes and limited turnover.

To read more about opening of a corporate bank account in the UAE, press here.

Frequently Asked Questions About UAE Holding Companies

What is the minimum capital required for a holding company in the UAE?

Requirements vary by jurisdiction. Free zones (DIFC, ADGM, RAK ICC) typically have no minimum capital requirement for holding companies. Mainland holding companies in the UAE may require minimum capital depending on the Emirate and license type.

Can a holding company in the UAE sponsor employment visas?

Yes, most UAE holding structures can sponsor visas, except passive structures like SPVs in certain free zones. Visa quotas depend on office size and jurisdiction within the UAE.

Are holding companies in the UAE subject to corporate tax?

Mainland holding companies in the UAE are subject to corporate tax but may qualify for participation exemption on qualifying shareholdings. Free zone entities (DIFC, ADGM, RAK ICC) enjoy 0% corporate tax on qualifying activities.

How long does it take to establish a holding company in the UAE?

Timeline varies by jurisdiction in the UAE: DIFC and ADGM typically require 2-4 weeks, RAK ICC 1-2 weeks, and Mainland 3-4 weeks, depending on document readiness and approvals.

Can my UAE holding company own international subsidiaries?

Yes, UAE holding companies can own and manage subsidiaries globally. This is particularly advantageous in DIFC and ADGM holding structures with international recognition.

What documents are required for holding company registration?

Standard documents include: passport copies of shareholders and directors, proof of address (utility bill or bank statement), business plan or activity description, and corporate documents if shareholders are entities.

Specific requirements vary by jurisdiction. We provide a complete checklist during the consultation.

What is the approximate budget for setting up a holding company?

Budgets range from $5,000 (RAK ICC) to $15,000+ (DIFC/ADGM) depending on jurisdiction and structure type.

This includes registration, licensing, and initial setup. Additional costs may apply for office rental, visa processing, and ongoing compliance. See our cost comparison table above for a detailed breakdown.

Can I change the structure type after registration?

While it's technically possible to restructure, it typically involves dissolving the existing entity and forming a new one, which can be costly and time-consuming. We recommend choosing the right structure from the start.

Our experts help you assess your needs during the initial consultation to avoid future restructuring.

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