Establishing a holding company in Dubai is an important step for every company seeking to set up several companies under one name and is an opportunity for every investor seeking to achieve success and diversify their investments. Dubai is an ideal investment environment for establishing a holding company in Dubai, as it contains an advanced infrastructure, encouraging laws and policies, and diverse and stimulating economic sectors for work.
In this article, we will explain how to establish a company in Dubai, how to choose a company name, determine the nature of the company’s work, what are the necessary licenses and business sectors available to start investing in, and many other questions that you will find answers to in this article.
Establishing a holding company in Dubai
Many investors want to establish a holding company in Dubai, and here are some general steps that will help you start establishing the company:
- Market study: You must study local and global markets and identify the available opportunities and companies you want to invest in.
- Planning: After studying the market, you must develop a strategic plan that includes the profits and goals of the company to start working properly.
- Determine the legal form of the company: This depends on your desire for the type of company, whether a local company, limited liability company (LLC), individual, joint stock, or other available legal forms, and each type has advantages and disadvantages.
- Legal consultation: You can seek the help of a lawyer or consultant to help you with the previous and next steps according to the state law, and this helps you continue to establish your company properly and without errors.
- Company registration and licensing: The company must be registered, and the necessary licenses obtained from the competent authorities such as the Department of Economic Development in Dubai (DED), and it is expected that there will be special requirements for holding companies.
- Opening a bank account: For each company that is established, you must not forget to open a bank account for the company to finance the company and provide for its financial needs.
- Contracts and agreements: Contracts and agreements must be prepared for your company with other affiliated companies, such as a distribution agreement.
- Legal and tax compliance: You must ensure that your company complies with the laws of the state, and this makes you more secure and stable.
Establishing a holding company in Dubai is not a complicated matter, but as a company, we strive with all our strength to achieve the desires of investors and business owners who always seek to establish successful businesses. With us, you can rest assured about your company from the beginning and develop the plan to the end.
Benefits of establishing a holding company in Dubai
A holding company is either a company that owns a share in another company or has a non-controlling interest and owns only a portion of the company’s shares. Therefore, the benefits of establishing a holding company in Dubai are numerous:
- Protecting company assets: The holding company owns the shares of another company, and the obligations and debts of the other company are often affiliated with the holding company. This means that if the subsidiary company defaults on its debts or is sued, this will not affect the holding company. Therefore, companies owned by the holding company remain at a high level of protection.
- Reducing taxes: Holding companies in Dubai often benefit from deducting the interest paid on purchasing shares of another company, and holding companies in Dubai are also able to avoid double taxation of dividends paid.
- Proper management of the company: The holding company can appoint one board of directors to supervise all companies in a coordinated and correct manner.
There are many benefits that make you rearrange your papers to think about establishing a company in Dubai.
What are the requirements for establishing a holding company
Establishing a holding company in the Emirates requires many requirements and varies from one structure to another, and we will present some of the main requirements as follows:
1. Obtaining shareholders: When establishing a holding company in Dubai, you need at least two shareholders.
2. Board of Directors: One board of directors must be appointed to supervise all companies.
3. Appointing a company secretary: We see that appointing a special secretary for the company has many advantages and will help companies with some needs.
4. Registering the work site: The labor office must be registered and appointed, and you will need this when obtaining the license and opening the register.
5. Obtaining the company stamp.
6. Opening a bank account for the company.
7. Having capital that meets the needs of the company.
8. Register for VAT.
9. You may need an Employer Identification Number (EIN).
These are some of the main steps that will help you take the step to open a company in Dubai, and you can seek the help of Tdabeer Company and get advice on the type of business you want to invest in.
Fees for establishing a holding company in Dubai
The fees for establishing a company in Dubai vary according to the type of company, the capital invested in it, and the procedures and services required. Therefore, if you want to establish a holding company in Dubai, you must know the cost of the project and the expected fees at the beginning, and this is what we will explain to you below:
- Establishment application fees: These fees include the registration application at the beginning and obtaining the necessary permits to start work.
- Consulting services fees: You may need a lawyer or consultant to help you understand the legal procedures and requirements for them, and with that, set the expected fees for them.
- Work location: The employer must obtain a location for the company, and this may include renting a place or purchasing an office or finishing and equipping, which requires costs and fees to use the place for work and as a commercial address.
- Registration and Licensing Fees: The company registration and license fees include fees.
- Company insurance fees.
At the end of the article, we can say that establishing a holding company in Dubai is an important step for every investor seeking to achieve long-term success by establishing a successful company in Dubai.
The UAE seeks to provide a modern and advanced infrastructure, provide many and diverse business sectors, provide various means of transportation and other advantages that make the UAE a developed and leading country in industry.
There is no doubt that Dubai will remain an ideal destination for entrepreneurs and investors, and through cooperation with Tdabeer we achieve what is appropriate for you as an investor and entrepreneur.