Benefits of Having A Holding Company in the UAE

Posted by ammy watson on February 3rd, 2021

UAE is one of the best business destinations in the world. The UAE offers tremendous business opportunities, especially for world trade, as it connects East and West. Apart from being positioned strategically, the UAE provides an entrepreneur many advantages. It is also home to many incubators, entrepreneurial centers, start-up villages, etc.

What is a Holding company?
The holding company is a legal entity the foreign or local investors hold to owe assets and shares in other companies. A holding company is unique in many ways, and therefore one should have understood the benefits of opening one in the UAE.

Top Benefits of opening a holding company in Dubai

Tax Benefits
The most crucial advantage of opening a holding company in Dubai UAE is the absence of dividend taxes and capital gain taxes. Even if you are a foreign investor, then also you will get tax benefits. If you have assets under the holding company in UAE, then you get the chance of minimizing the tax liability.

Suppose you have a holding company in Dubai, UAE. In that case, you also benefit from applying for the tax residency certificate, and you can enjoy the benefit of tax treaties.

Easy Management of Subsidiary
Operating a holding company in UAE can be different than opening any other company in UAE. Holding companies don't work in the same way as other businesses that offer services and products operate.

All those investors who want to increase their assets must use the holding company to manage the multiple subsidiaries efficiently. You are also free to select from various legal structures of business. And 100 percent ownership is guaranteed for the business setup in UAE free zones. If you are a holding company owner, then you can form UAE based subsidiaries.

Low Risk
If you are operating a holding company in UAE, you have minimal risk because it enables each investor to have shares in more than one company. Also, the holding companies are not responsible for obligations of subsidiaries or any debts. This mean s that your assets are safe here.

Different Ownership Options

If you buy a property through a holding company in Dubai, UAE, you can own shares and assets in a different company. That means your holding company can be beneficial for property ownership and investment in other companies.

Suppose you have multiple ownership that you have many investment options to make in UAE. There is a minimal risk because the assets are held by the company and not by an individual. Make sure to choose the right ownership options from different holding companies you own.

Easy Banking

If you have a residence visa and have a business license via JAFZA, it will be straightforward to open a bank account in UAE. Otherwise, it will be very challenging.

You can also have access to your funds via internet banking from anywhere around the world, which gives you control over your company finances from any place in the world.

Conclusion
There are various reasons for business setup in UAE. It is easy to open a company as a foreigner. Compared to other jurisdictions opening a holding company in UAE can be very beneficial. You can have access to multiple financial products. If, as a business owner, you want to add a layer of security, then you must go for a holding company in UAE. Also, you have a very close professional relationship with the entire world.