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Nowadays, UAE is not known in the world economy solely because of oil. UAE’s economic progress is accelerating with the increase in oil prices and production and the presence of a strong non-oil sector. In 2021 as per the Foreign Direct Investment (FDI) Confidence Index by Kearney UAE, it sits at rank 15 globally. UAE has business-friendly legislation that aims to provide a better environment for its businesses while providing new investment opportunities and ensuring business stability. The country is actively trying to diversify its economy, and it is working out nicely. 70% of total GDP is contributed by the non-oil sector. Setting up a company, especially a holding company in the UAE, is extremely beneficial, whether you are expanding your business or starting one. The benefits of establishing a holding company in the UAE are not limited to tax efficiency and infrastructure. The UAE offers flexibility in legal frameworks tailored to different sectors.
To establish a holding company in the UAE, you must get a license. For this, you should navigate a few steps, and if you are diligent with the process, it can be done without any hassle.
Before getting a license, you should decide on what type of holding company you want to set up. There can be some slight changes in the process depending on your choice. These are the types of holding companies in the UAE:
1. Mainland Holding Company: For these, you should register with the Department of Economic Development (DED). A company like this cannot engage directly in trading or commercial activities, but they can conduct administrative activities through subsidiaries.
2. Free Zone Holding Company: Free zones are certain dedicated places in the country offering 100% foreign ownership and tax exemptions. If you are looking for international trade and asset management, these are ideal.
3. Offshore companies: There are restrictions on local operations. The entrepreneurs can select if it meets the requirement.
4. Public Joint Stock Company: These are publicly listed and require a minimum capital up to a certain extent.
5. Private Joint Stock Company: These are not publicly listed. The minimum capital requirement is to be met.
Now that you have an idea about the types of companies, let us move on to the process of obtaining a holding company license.
You can apply in person through government service centres and other authorized places. You can also do it online through the E-Basher platform, which only takes 15 minutes. The offline process through DED takes 4 days, which is a lot less than other countries.
1. Choose a business name and register it as the trade name. The trade name should be unique. This should be compatible with the chosen economic activities. This should also be in compliance with naming conventions and regulations in the UAE. This should be in compliance with the UAE naming conventions and regulations.
2. Apply for initial approval. Before full licensing, initial approvals are required. This initial approval means the government approves your business being established.
3. Create a Memorandum of Association, which is required if the company is a holding company. These include information such as the companies, registered address, purpose, initial capital, and names of the incorporators. These are usually filed with a government authority or corporate registry and depend on your company’s type.
4. Choose a location for your business. It is mandatory that a business in the UAE have a physical address. The tenancy contract can be registered through the Ejari portal of the Dubai Land Department.
5. Submit Documents
Usually, documents needed are:
6. Register your company. After collecting fees, you should register your company with the Chamber of Commerce and Industry. This should be done in the same Emirates where the company is incorporated.
Getting a holding company license in Dubai is not that complicated, thanks to the government. But setting up a holding company involves careful planning regarding structure and compliance with local regulations. Consulting with CDA ensures a smooth, hassle-free setup process. Thanks to our team with familiarity with the landscape and expertise in the field. Our team of experts can serve you with multiple business setup and trade licensing services, including the license for the holding companies, simplifying the procedures and enabling easy business setup in Dubai. To know about our services, contact our team now.
