ARE YOU CONSIDERING CONSOLIDATING YOUR ASSETS UNDER A HOLDING COMPANY IN A LOW-TAX JURISDICTION? CONSIDER DUBAI/ UNITED ARAB EMIRATES (UAE)!!!
A Holding Company implies a legal entity, incorporated with the sole purpose of holding the ownership of assets. This consolidation of assets (investments, real estate, intellectual property) under the ownership of one legal entity (Holding Company) is often motivated by different factors such as better and centralized control, pooling the resources, mitigating the risk, expansion, and improvement of the business, acquisition, and disposal of the assets, tax planning, Succession, etc.
Dubai, UAE is a hot favorite destination for investors around the globe on account of its political and economic stability, state-of-the-art infrastructure, low tax, and investment-friendly legal regime. Along with the provision of different solutions to the requirements of local and international investors/businessmen, Dubai/UAE is offering different attractive options for the incorporation of Holding Companies.
Dubai, UAE offers multiple options to those looking forward to setting up a Holding Company here i.e. onshore holding company and offshore holding company.
Onshore Holding Company is registered with the Dubai Economic Department and/or the Economic Departments of the other Emirates of the UAE and/or certain licensed Free Zone Authorities. Onshore holding companies are regulated by the Ministry of Economy and are incorporated and operate under the Company Laws of the country.
Onshore Free Zone Authorities such as Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), Dubai Multi Commodities Centre (DMCC) and International Free Zone Authority (IFZA) also permit the incorporation of Holding Companies. Such holding companies are set up under the relevant Free Zone laws and regulations and regulated by the concerned Free Zone Authority.
Offshore Holding Company are registered with different Free Zone Authorities in the UAE i.e. Jebel Ali Free Zone Authority (JAFZA), Ras Al Khaimah Free Trade Zone Authority (RAKICC), and Ajman Free Zone Authority. Offshore holding companies are set up under regulations issued by their registering authorities.
A Dubai/UAE Based Holding Company can be structured in a variety of forms; however, a limited liability company is the most preferred form. The Holding Company does not assume any role in the business operations of the subsidiary Companies and rather oversees it run by its management.
There is no restriction on the domicile of the subsidiaries and assets owned by the Dubai/UAE-based holding company. The data protection laws of the country also protect investor data and maintain confidentiality. The legal and regulatory framework of Dubai/UAE shields the holding company against the litigation/suits for recovery instituted against any subsidiary. Dubai/UAE-based also allows the holding companies to take advantage of double taxation/tax avoidance agreements executed with most of the higher tax jurisdictions.
If you are planning to set up a Holding Company and are not sure about the jurisdiction, Dubai/UAE is the answer.
To discuss holding company formation in Dubai, UAE, Contact us at IP Wise Solutions.