Check list for starting a holding company in Dubai

  • Firstly, you have to appoint a board which will help in creating a policy for the branch of the company.
  • Next, the board must look after the activities provided by its subsidiaries or branch.
  • Thirdly, the shareholders of the holding company must appoint a director in every branch.
  • Next the holding company must look that the branch has the necessary capital to carry out their day to day activities.
  • Further the holding company must provide the limits of the risk a subsidiary can take (the foreign currency, the market, and even the industry risks
  • Finally the holding company will make the decisions to the contracts made by the branch.

Types of Holding Companies

There are two categories of the holding companies in Dubai:

  • Onshore holding company is an onshore holding company. Here the foreign investor must have a local partner. The partner will own at least 51% of the company.
  • Free zone holding company is a holding company in any of the free zones. In a free zone the business can have 100% foreign ownership.

Activities of a Holding Company

The main purpose of creating a holding company is to own shares and control the assets of the branch company. Usually, a holding company will deal in commercial activities. Such a company cannot sell or produce any goods or deliver any services.

Those who want to set up the holding companies in Dubai, will register them with the Department Economic Development.

The functions of holding companies in Dubai

  • Firstly, the holding company must have a director or a management board depending on its type.
  • Secondly, the company management must set out the rules of the holding company and look after its activity.
  • Next the holding companies may also open subsidiaries in Dubai, the management must look after that also.
  • The management must see that the holding company has the necessary capital to operate.
  • These types of the companies can be set as holding companies in Dubai:
    • Limited Liability Companies (LLCs)
    • Joint Stock companies
    • Partnership firms
    • Free zone companies.