How to Set Up an Investment Holding Company in Dubai

How to Set Up an Investment Holding Company in Dubai?

As we all know, UAE, especially Dubai, has established itself as the sought-after place for investors looking to establish their businesses. UAE’s connectivity, location, infrastructure and ease of doing business have made it the paradise of investors. It also is famous for its vibrant social and cultural life with almost 200 nationalities staying in UAE.

The UAE government has been working all around to attract investors and investments. As part of its ambition for becoming the future business capital of the world, it has built infrastructure second to none. One can see an ever-changing Dubai in terms of infrastructure and outlook, be it the world’s tallest building Burj Khalifa or the push towards future technologies, embracing change with the speed only the best can achieve.

Dubai has been attracting huge investments lately after it allowed 100% foreign ownership in many business activities. Now, most companies can be opened with 100% foreign ownership. Earlier, the most preferred mode was to open an offshore or free zone entity for investment and holding entities in UAE. There were a lot of disadvantages for offshore entities, including the inability to open an office or obtain visas. There was also a restriction on trading inside UAE by these companies. Almost all these hurdles have now been removed by the introduction of new laws allowing 100% foreign ownership.

The new law allows investment companies to be opened in Dubai Mainland with 100% foreign ownership. The activities can include any or a combination of the following for a holding or investment companies in Dubai;

  • Investment in Agricultural Enterprises & Management– Includes firms and holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various agricultural activities, such as land reclamation, animal and poultry farming, marketing crops and exploitation of fish and sea animal resources, it includes operating and managing said subsidiaries.
  • Investment in Commercial Enterprises & Management– Includes firms and holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various commercial, transport, contracting and finance activities, it includes operating and managing said subsidiaries.
  • Investment in Industrial Enterprises & Management– Includes firms and holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various industrial, extraction or converting activities, it includes operating and managing said subsidiaries.
  • Investment in Outer Space Projects– Includes firms and holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various activities related to external space, whether domestic or foreign capital, it includes operating and managing said subsidiaries.
  • Investment in Oil & Natural Gas Projects– Includes holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various oil and natural gas projects, it involves exercising operational control and managing the operations of said subsidiaries.
  • Investment in Sports Enterprises & Development– Includes holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various sports infrastructures and projects, it involves exercising operational control and managing the operations of said subsidiaries.
  • Investment in Water Enterprises & Development– Includes holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various water infrastructures and projects, it involves exercising operational control and managing the operations of said subsidiaries.
  • Investment in Healthcare Enterprises & Development– Includes holding companies formed to invest their funds or secure funds to be invested in setting up healthcare projects, such as hospitals, clinics, sanatoria, rehabilitation centres and other similar enterprises. it includes managing and organizing the affairs of such companies.
  • Investment in Energy Enterprises & Management– Includes firms and holding companies formed to invest their funds through setting up subsidiaries to invest in non-renewable and renewable energy resources, it also involves managing and organizing such subsidiaries.
  • Investment in Educational Enterprises & Management– Includes firms and holding companies formed to invest their funds through setting up subsidiaries to invest in educational facilities, the projects that aim at enhancing the capabilities of people with special needs and children with autism as well as knowledge and human development promoting project, it also involves the management and organizational activities.
  • Investment in Tourist Enterprises & Management– Includes firms and holding companies formed to invest their funds through setting up subsidiaries to invest in tourist facilities that aim at enhancing Dubai as a tourist attraction, it also involves managing and organizing such subsidiaries.
  • Investment in Retail Trade Enterprises & Management– Includes holding companies formed to invest their funds and hold the assets of subsidiary corporations which carry out various retail trade, it also involves managing such enterprises.

How to Set Up an Investment Holding Company in Dubai - 2

Dubai Mainland license is issued by the Department of Economy and Tourism. We, Profound Business Services, have been assisting in opening investment companies for our clients. The process and requirements are dealt with by us in a hassle-free manner. We will require the passport copy, Visa copy & Emirates ID copy (If available) and the photo with the holding passport, Mobile number and email ID as documents.  We can open a company for you within a day. These companies can be opened with a single shareholder or up to 99 shareholders. The company structure will be a Limited Liability company. The minimum capital is AED 100,000 and can go higher as decided by the shareholders. There is no requirement to show capital in a bank account and it will be considered as paid-up capital. There are no Nationality restrictions and the company can be opened for Year 1 without renting an office space. At present, for opening a bank account, office space is mandatory.

This article is written by Mr Firose Khan, MD, Profound Business Services. Please feel free to contact Profound Business Services for your corporate requirements. We are happy to provide any information or assistance which may be required. Please call us at +971 4 325 6111 or email us at [email protected]

*Please Note: This article was published on 29th August 2022. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.

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