How to Open a Holding Company in Dubai in 2025 – The Complete Guide
If you’ve been planning a business setup in Dubai, chances are you’ve heard about the benefits of holding companies. The truth is, while trading companies and operational entities get a lot of attention, a holding company in Dubai is one of the smartest ways to structure wealth, investments, and subsidiaries in the UAE. Let’s break down what a holding company is, why it matters, and exactly how to set one up in 2025. What Is a Holding Company in Dubai A holding company is a legal entity that doesn’t directly sell goods or services but instead owns shares in other companies. Think of it as the “umbrella” structure that controls subsidiaries, real estate, intellectual property, or financial assets. By setting up a holding company in Dubai, you can manage multiple businesses, optimize tax exposure, and centralize ownership under one structure. Why Set Up a Holding Company in Dubai in 2025 There are three main reasons entrepreneurs and investors choose this route: 1. Ownership Flexibility A holding company can own 100 percent of its subsidiaries in Dubai free zones or mainland (depending on the sector). This eliminates the complexity of multiple shareholders across different companies. 2. Tax Efficiency With the new corporate tax in Dubai, holding companies allow you to consolidate profits and losses across subsidiaries. This structure can reduce the tax burden and provide better clarity for filing. 3. Asset Protection A holding company separates ownership from daily operations. This shields your core assets — like real estate or intellectual property — from operational risks in trading subsidiaries. Mainland vs Free Zone Holding Company Dubai You can open a holding company either in the mainland or a free zone. Here’s the difference: Free Zone Holding Company: Ideal for international investors. Offers 100 percent foreign ownership, tax exemptions, and simplified reporting. Popular choices include DMCC, DIFC, and ADGM. Mainland Holding Company: Suitable if your subsidiaries operate locally in Dubai or across the UAE. You’ll have to follow mainland compliance, but it gives you direct access to UAE’s domestic markets. Step-by-Step Process to Open a Holding Company in Dubai Here’s a clear breakdown of the setup process: Step 1 – Choose Mainland or Free Zone Decide based on where your subsidiaries operate and whether you want local or international structuring benefits. Step 2 – Select the Right Jurisdiction Each free zone has its own advantages. For example: DIFC / ADGM: Best for financial holding companies. DMCC: Flexible for diverse businesses. RAK ICC: Known for cost-effective holding structures. Step 3 – Prepare the Documentation You’ll need: Passport copies of shareholders Proof of address Business plan or corporate structure chart No Objection Certificate if applicable Step 4 – Apply for Trade License The trade license category will specify the company as a holding entity. This ensures compliance with regulations. Step 5 – Register With Relevant Authorities Free zones and mainland authorities require additional approvals depending on your structure. Step 6 – Open a Business Bank Account in Dubai This is critical for moving funds between subsidiaries. Most banks will require the parent company’s license, ownership chart, and details of the entities it controls. Step 7 – Maintain Compliance Annual filings, corporate tax submissions, and audits must be done. A holding company may not trade directly, but it still needs to comply with UAE laws. Costs of Opening a Holding Company in Dubai Costs vary based on jurisdiction: Free Zone Holding Company: AED 15,000 – AED 30,000 annually. Mainland Holding Company: AED 20,000 – AED 40,000 annually, depending on approvals. Additional expenses include visa costs, bank account opening, and corporate tax compliance. How Holding Companies Help With Corporate Tax Dubai Under the UAE’s corporate tax framework, holding companies play an important role. They: Allow consolidation of profits and losses across subsidiaries. Simplify filing by centralizing tax reporting. May benefit from exemptions on dividends and capital gains in certain cases. This makes a holding company Dubai structure not just practical but also financially smart. Why Choose AB Capital for Holding Company Setup Starting a holding company requires precision — from jurisdiction selection to tax structuring and compliance. At AB Capital Services, we specialize in guiding entrepreneurs and investors through every step. Here’s how we help: Advising on whether a mainland or free zone holding company fits your needs. Preparing and submitting documentation without delays. Opening a business bank account in Dubai for your new holding entity. Ensuring compliance with corporate tax in Dubai and VAT requirements. Offering ongoing advisory for restructuring, acquisitions, and cross-border planning. Led by Bharat Bajaj, with 20 years of global finance and taxation expertise, AB Capital ensures your holding company is structured for long-term growth and protection. FAQs About Holding Companies in Dubai 1. What is the purpose of a holding company in Dubai? It owns and manages shares in subsidiaries, assets, or real estate, rather than conducting direct trading. 2. Is it cheaper to set up a holding company in a free zone? Yes, free zones generally offer lower costs and simpler compliance than mainland holding companies. 3. Can foreigners fully own a holding company in Dubai? Yes, in most free zones, 100 percent foreign ownership is allowed. 4. Do holding companies in Dubai pay corporate tax? Yes, but they may benefit from exemptions on dividends and capital gains, depending on the structure. 5. How long does it take to open a holding company in Dubai? Usually between 2 to 4 weeks, depending on jurisdiction and documentation readiness. Disclaimer: The information in this blog is for general guidance only and may change due to updates in government policies or regulations. For the most accurate and up-to-date advice, please consult with a licensed advisor or reach out to AB Capital Services directly.
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