In a bold move that further cements Dubai’s position as a global business hub, the Dubai Multi Commodities Centre (DMCC) has introduced SPV (Special Purpose Vehicle) and Holding Company Licences with two powerful corporate structuring tools that offer investors, entrepreneurs, and international companies smarter, more strategic options to manage assets and risk.
As the business world continues to evolve, so do the demands of entrepreneurs and corporations looking for tax-efficient, flexible, and legally sound business vehicles. These new licences are designed to fill that need and they are now available directly within the DMCC free zone.
If you’re considering company setup in Dubai, especially for asset protection, investment holding, or corporate structuring, this blog by AB Capital Services is your ultimate guide to everything you need to know about the new DMCC SPV and Holding Company Licences.
What is DMCC and Why Does It Matters?
The Dubai Multi Commodities Centre (DMCC) is the world’s leading free zone for trade and enterprise. Located in the heart of Dubai, it has earned a reputation for innovation, regulatory transparency, and investor-centric policies. With more than 23,000 companies registered, DMCC is often the first choice for foreign investors seeking a flexible and internationally trusted jurisdiction.
The introduction of SPV and Holding Company Licences is a game-changer for high-net-worth individuals, family offices, multinational corporations, and investment funds that need sophisticated business structures in a robust jurisdiction.
What is a DMCC SPV (Special Purpose Vehicle)
A Special Purpose Vehicle (SPV) is a legal entity created for a specific, limited business purpose. It is often used to isolate financial and legal risk or hold specific assets and investments separately from the parent company.
Key Features of a DMCC SPV:
- No physical office space required (Flexi-desk or shared desk model)
- Can be 100% foreign-owned
- No need for a UAE residence visa
- Allows for holding shares in UAE and international companies
- Permitted to own property in designated zones like Dubai Hills, Business Bay, Downtown, and more
- Light compliance requirements (no audit mandatory unless required by authorities)
- Ideal for estate planning, corporate structuring, and IP ownership
Use Cases for SPV in UAE:
- Holding intellectual property
- Real estate ownership and segregation
- Risk management through subsidiary creation
- Simplified corporate structuring for global businesses
- Facilitating mergers and acquisitions
- Fundraising or investment pooling
What is a Holding Company in DMCC?
A Holding Company is an entity created to own controlling interests in other companies. Unlike an SPV which is used for a specific transaction or purpose, a Holding Company operates as a long-term management entity for group structures and ownership consolidation.
Key Features of a DMCC Holding Company:
- Allows you to hold stakes in multiple entities both in the UAE and internationally
- Provides centralized control of operations, assets, and investments
- 100% foreign ownership permitted
- No requirement for physical office space
- No trading of goods or services under this licence
- Can sponsor employees and directors if needed
- May apply for UAE tax residency and benefit from double taxation agreements
Who Should Consider a Holding Company Licence:
- Business groups managing subsidiaries in multiple industries
- Investors with multiple real estate or startup investments
- Entrepreneurs consolidating international assets under a UAE structure
- Family offices seeking long-term asset protection and inheritance planning
SPV vs Holding Company: What’s the Difference?
While both the SPV and Holding Company licences provide structural advantages, they serve slightly different purposes:
| Feature | SPV | Holding Company |
| Purpose | Single or limited scope transaction | Long-term ownership and group control |
| Operations | Passive ownership, no active trading | Passive ownership, potential management role |
| Visa Eligibility | Not required | Optional (can sponsor visas) |
| Use Cases | Real estate, IP, fundraising, M&A | Owning shares in multiple companies |
| Corporate Bank Account | Possible with proper structure | Easier to open depending on activity |
Benefits of Setting Up a DMCC SPV or Holding Company
Whether you opt for a DMCC SPV licence or a Holding Company licence, both offer serious advantages in 2024 and beyond:
1. 100% Foreign Ownership
You maintain full control of your entity and assets without needing a local sponsor.
2. No Corporate Tax on Passive Income
As long as your entity does not exceed the corporate tax thresholds or qualify under taxable activity, it may be exempt under UAE’s tax laws.
3. Asset Protection
Keep your business and personal assets separate. An SPV or holding company isolates liabilities and reduces exposure.
4. Succession and Estate Planning
Perfect for high-net-worth individuals and family offices looking to ensure smooth intergenerational asset transfer.
5. Banking Flexibility
With the right documentation, both structures are eligible for corporate bank accounts. AB Capital Services works with leading banks in the UAE to streamline this process.
6. Cost-Effective Setup
No need for physical office space and minimal operational overheads make this one of the most affordable corporate vehicles in Dubai.
Cost of Setting Up an SPV or Holding Company in DMCC
While prices can vary depending on specific requirements, here is a rough breakdown:
- DMCC Licence Fee: Starting from AED 10,000 per year
- Flexi-Desk Office Package: AED 5,000 to AED 7,000 annually
- Registration and Documentation: AED 5,000 to AED 8,000
- Corporate Bank Account Assistance: Included with AB Capital Services
Total setup cost ranges between AED 20,000 to AED 30,000, depending on the complexity of your structure.
How AB Capital Services Helps You Set Up in DMCC?
At AB Capital Services, we are more than business setup consultants. We are corporate structuring experts.
Here is how we help:
- Tailored consultation to choose between SPV and Holding Company
- Company setup and full documentation
- Support with shareholder and ownership structuring
- Assistance with tax residency certificates if required
- Fastest business bank account opening in 3 business days
- Ongoing compliance and renewal management
We work closely with DMCC and UAE banks to deliver a smooth, efficient, and fully compliant experience.
Final Thoughts
The introduction of DMCC SPV and Holding Company licences is a strategic evolution in the UAE’s business ecosystem. Whether you are a startup founder, real estate investor, or multinational group, these structures offer a secure and flexible foundation to grow, protect, and manage your wealth in the UAE.
At AB Capital Services, we help you navigate the complexities of company setup, structuring, and banking! So you can focus on what matters most: building value.
Ready to establish your SPV or Holding Company in DMCC? Contact AB Capital Services today and let us set up your business smarter.
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