What is a Holding Company in the UAE?
A holding company is an organization of smaller firms operating in various fields connected together. The main business entity would have a strong presence in the business arena of the firms, with prominent shareholdings. However, the holding company cannot interfere in their business activities, promulgate policy regulations, plan a retail business, or involve in commercial acts.
The structure of a holding company in the UAE is as in any other region across the globe. The businesses having a holding company license would be listed under a specific segment. Having these peculiar aspects, the holding company owners are unauthorized to sponsor anyone or issue employment visas.
Holding company is an advantageous option for the entities to have a strong financial state, perform unconcerned about fluctuating economic scenarios, pursue decisions without much dilemma and opt for merger in the future.
Requirements for Holding Company Setup in UAE
The authorities in Dubai and other emirate in the UAE have laid down specific requirements for opening a holding company. A holding company license in UAE would be issued post ascertaining that the company meets all the requirements. The regulations and requirements include:
· A holding company must have a board of managers for creation of common policies for the subsidiaries
· A representative director from the holding company must be appointed in every subsidiary firms
· The holding company should undertake proper supervision of all the business activities by the subsidiary entities
· Industry risks, including investment in share market and receiving of foreign funds, must be limited through directives issued by the holding company
· Confirming that the subsidiary companies have enough capital is in the purview of the holding company
· Final decision for the contracts and agreements by the companies would be by the holding company
Our professional team will assist you in completing the incorporation of the holding company and conclude the official formalities for holding company license in UAE for you. Talk to us now.
Types of holding companies in UAE and Activities completed
A holding company in Dubai/ UAE can incorporate a variety of business entities. Having the possibility to own stakes in different companies, the holding company has optimal growth prospects. As known, diversifying the investment is one of the most productive and healthy business options.
The holding company could be:
· Onshore holding company
· Free Zone holding company
Many conglomerates and multinational companies form holding companies to have control of different business sectors. With this, the big entities can have a strong presence in almost all of the fields without direct involvement or the stress of day-to-day business activities.
At the same time, ex-pat and resident individuals can also form a holding company in UAE. Thorough knowledge and in-depth information may be vital to make the process of holding company formation in Dubai easy and viable. Feasibility studies also may turn necessary to prevent judgemental errors during the business setup. We could be your best support for holding company formation in Dubai or any other region in UAE.
Get in touch with us now to discuss the holding company setup in UAE.
Benefits of Holding Company in UAE
Holding company setup in UAE offer a plethora of benefits. Those include:
· The owner can get a residency visa
· Fastest business set up
· Nil corporate tax
· Holding companies are exempted from VAT
· Paid-up share capital not required
· Holding company has access to UAE banking systems and options for loans. To invest in more businesses
· 100% confidentiality on investments
· Nil liability on the debts and risks by the subsidiary companies
Kiltons Business Setup services for Holding Company Setup in UAE
Kiltons welcomes you UAE to commence your entrepreneurial journey. We have been one of the leading business setup services in Dubai since 1999. We could help realize countless ex-pats to realize their dreams in the past twenty-two years. The positive identity created during the period is what energizes our journey.
Professionals with immense experience are our assets. They would play a significant role in making your venture successful and elevating your business to the next level. You can trust us to provide you optimal support.
To discuss holding company formation in UAE, contact Kiltons now.