Learn how you can set up a holding company in Dubai at the Dubai International Financial Centre (DIFC) by reading this article.
DIFC is the leading international financial centre in the GCC and MENA region. As a member of the World Alliance of International Financial Centres (WAIFC), it has a regulatory framework built on the best practices found in the top financial jurisdictions in the world.
DIFC Company Set Up: Why a Holding Company in the DIFC?
The reputation and credibility of the DIFC as a well-regulated jurisdiction with the DIFC Courts using common law makes it different than any other jurisdiction in Dubai. Uses of a DIFC holding company include holding shares in other companies, managing a real estate portfolio, and other assets.
A DIFC holding company provides a layer of separation between a shareholder and another operating company, which is useful in the event of litigation. You can use a holding company for intercorporate dividends from other operating companies.
Many publicly traded companies across the region are holding companies, and many people buying stock don’t even realize they’re investing in a holding company and not the operating company. DIFC holding companies are also attractive as vehicles to draw investments for small and medium-sized businesses.
A holding company established in the DIFC qualifies for a UAE Tax Residency Certificate. Unlike many other jurisdictions popular for holding company incorporation, the UAE has an ever-growing portfolio of double taxation agreements.
Here are some other key benefits of a DIFC holding company:
- No capital gains tax on disposal of shares
- No stamp duty on share sales except in cases where the holding company owns real estate in the UAE
- No capital repatriation restrictions
- No currency restrictions
Business Setup Process for a Holding Company at DIFC (Dubai International Financial Centre)
Entrepreneurs seeking to establish a holding company must apply for the incorporation of a DIFC entity. They can do so by submitting their application to the Registrar of Companies (ROC), who will advise, review, and process the application. All the required documents for incorporation are listed on the DIFC website.
It is worth noting that mistakes or inaccuracies in your application can delay the incorporation process. Therefore, it is recommended to partner with a company formation expert to review your application before submitting it to the registrar.
If the registrar approves your application, you can apply for office space in the DIFC and pay your license fees. Your license is subject to annual renewal.
Our consultants can provide the latest information about DIFC holding company formation costs, we recommend you arrange a free consultation with our seasoned professionals.
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