Dubai’s Business Safeguard The Crucial Functions of Holding Companies
The Holding Company in Dubai as a term used for any organization or firm which possesses the stock of other companies. A purpose of a holding company in Dubai is to own the shares of other companies. But, a holding company in Dubai is not allowed to carry out business activities such as providing services or manufacturing goods.
An important function of a holding company:
It decreases the risk of owners and at meanwhile allows ownership as well as control of several companies.
Categories of holding companies in Dubai:
- The onshore holding company
- Free zone holding company
An expat must have a local partner who will own 51% of the company to register an Onshore holding company.
To register Free Zone Holding company, the foreign investors are allowed to have 100% foreign ownership
Functions of Dubai Holding Company:
The holding company in Dubai must have a director or a management board depending on its type. The company management should create the regulations of the holding company and supervise its activity. As for holding companies that may also open subsidiaries in Dubai, the management is also in charge of their supervision. The management should ensure the holding company has the necessary capital to operate.
Types of entities:
- Limited liability companies
- Joint-stock companies
- Free zone companies
Minimum Investment for Dubai holding company
- There is no minimum share capital to set up Limited Liability Companies
- You will require minimum AED 10 million to set up a public shareholding company in Dubai.
- You will require AED 2 million to set up a private shareholding company,
- Free zone companies start from AED 51,000 but it also varies in the free zone as well as an activity you choose.
The foreign investors can also enlist partnerships as holding companies in Dubai. To set up the company, one must prepare the Memorandum of association and Articles of Association and file them together copies of their identification documents with the Department of Economic Development (DED).
Note: The UAE legal representative must be appointed to register the holding company in the Emirate.
Starting a holding company has a huge scope of growth. It can be a challenge when it comes to the business setup procedure in Dubai. You must have the business consultants with you to assist and guide you. Click Here to Contact MSZ or Email to info@msz.ae.