Dubai has turned itself into a dream destination for entrepreneurs and investors all over the world. The economic growth of Dubai has been exponential in recent times. Entrepreneurs from all around the world are coming to Dubai to start their businesses. The existing companies are also working hard to expand their market share.
So this creates a huge opportunity for investors. As a result, Holding companies are getting pretty popular in Dubai.
As an entrepreneur, it would be very profitable for you to start a holding company in Dubai. The opportunity is huge. But if Starting a holding company is too much of a hassle for you, you can still take advantage of the situation as an investor.
You can invest through holding companies in Dubai. You should get a considerable return on your investment by making the right investment decision.
What Is a Holding Company?
A holding company is an LLC or corporation that owns assets such as property and/or one or several business subsidiaries. The main activity of a holding company is to own the subsidies company.
As a parent company, the holding company itself doesn’t perform any of the business activities of the subsidies. A holding company can not produce any type of product or service. It must have a management board and directors that will oversee the activities of the subsidiary companies.
Requirements for Starting a Holding Company in Dubai
Staring a holding company in Dubai seems lucrative, but it still comes with some responsibilities. Before you can start a holding company in Dubai, you will need to follow the guidelines set by the local authority.
Now the requirements are almost the same as other small businesses, but there are still some variations. Here are the requirements for holding companies in Dubai:
- Select a management board to handle the subsidiary companies.
- Appoint directors for each of the subsidiaries.
- Oversee subsidiary activities. You can not directly perform any subsidiary activities.
- Provide Necessary capital to the subsidiary to stay a float
- Holding companies can not produce products or services
These requirements are ever-changing with the changing dynamic of the competitive market. You can choose a third-party company setup consultants who can help you through all these complexities.
Company Setup Consultants have experienced professionals who have been helping entrepreneurs, investors, and businesses through all these processes to make the most of their financial investments.
Steps of Opening a Holding Company in Dubai
Starting a holding company in Dubai is almost the same as starting a small business. However, there are some unique requirements and guidelines that come with starting a holding company. The process of starting a holding company might confuse you if this is your first time dealing with this type of affairs. Company Setup Consultants can help you through the entire process.
If You Are Planning to Starting a Holding Company in Dubai, UAE! Send Us Your Inquiry
Here is the process of starting a holding company in Dubai:
1. Select a Company Name
You must choose a name that is unique in Dubai. The name you choose will hugely affect the success of your company, so you must make a wise decision. While choosing a name for your company, you must follow the rules and regulations of the local authority. For example, your company name must not contain any racial slur or disrespectful content.
2. Select a Location
You will have two locations to choose from in Dubai that come with their own advantage. You can either choose to start your holding company in the mainland or the free zone. You can retain 100% of the ownership of your company if you choose to operate in the free zone.
3. Pick a Management Board
Next, you will need to pick a management board that will set the policies of your organization. Additionally, they will supervise the business activities of the subsidiary companies.
4. Appoint Directors
After picking the management board, you must appoint directors for each of the subsidiary companies. The main duty of the directors is to oversee the finances, and the business operations undertaken by the subsidiary companies.
5. Business Consultants
The process of starting a holding company in Dubai is quite complicated compared to the process of starting a small business. So, it is best to take help from professional business consultants like Company Setup Consultants.
Company Setup Consultants will take care of the whole process of starting the holding company for you. Company Setup Consultants will also assist you in running your daily business operations.
Cost of Starting a Holding Company in Dubai
The cost of starting a holding company in Dubai will vary based on the size of your business operation and location. With a well-crafted business plan, you can reduce most of the unnecessary costs.
Here is a rough estimate of what it will cost to start a holding company in Dubai:
- Name approval costs: AED 600
- Initial approval costs: AED 120
- Memorandum of Association Drafting: AED 1,500
- Rent of Office Spaces
- Activity Fees: AED 15,000
- Licensing Fees: AED 10,000
Benefits of Starting a Holding Company in Dubai
There are some benefits that come with starting a holding company in Dubai that makes the opportunity more lucrative. Here are some benefits that come with starting a holding company in Dubai:
1. No Share Capital Required
If you are starting your holding company in the free zone, you will not need to provide any share capital. This will allow you to keep 100% of the ownership.
2. Effective Asset Management
Subsidiary companies can utilize the logo, name, equipment, and exposure of the parent company. You can maintain your investment, whether in other companies or assets, through a holding company.
3. Risk Management
The liabilities taken by the subsidiary companies do not carry any risk for the parent company.
4. Privacy
Investors can invest anonymously by investing through a holding company.
How can we help to start holding company in Dubai?
If you want to start a holding company in Dubai, UAE? you will get holding company licenses in dubai . This is because Company Setup Consultants has helped numerous entrepreneurs from all over the world start various businesses in the UAE. Contact us today and hit the ground running.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at [email protected].
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