The environment of business setup in Dubai, UAE has for years been of paramount significance to foreign investors, especially when it comes to holding their investments. In this respect, registering a holding company in the UAE provides plenty of scope to foreigners as the country is in perfect alignment with almost all the key parameters that the investors use while making a decision in this regard. The key benchmarks such as transfer pricing, DTAs (Double Tax Agreements), Bilateral treaties, the efficiency of the applicable legal system, depth of banking infrastructure and availability of banking products, support of governmental and/or regulatory authorities, ease of doing business, regulatory compliance etc. are in favour of making the UAE perfect for setting up a holding company.
Holding company incorporation is unique in every respect and therefore it makes sense to explore what benefits the particular business structure offers them. Business setup consultants in Dubai have identified the key advantages as below:
1. Consolidated Tax Benefits
The investors who set up a holding company in Dubai benefit from the complete absence of capital gains tax, and dividend tax. The tax benefits are guaranteed even if the persons who are in charge of the holding companies are resident abroad. By holding the assets under the holding company set up in the UAE, the investors get a golden chance to considerably minimise their tax liability. The UAE has double taxation avoidance agreements (DTA) with more than 100 countries worldwide.
The business setup in Dubai allows the holding companies to apply for a tax residency (TRC) certificate. With the TRC the holding company investors can enjoy the benefits of the tax treaties. The TRC and the DTA allow the holding companies set up in the UAE to be regarded as a resident here in many cases thereby becoming eligible for favourable tax treaty inclusions. However, the investors need to meet certain requirements of Economic Substance Regulations (ESR) for which the assistance of the best business setup consultants in Dubai can be availed.
2. Smooth Management of Subsidiaries
The holding company formation in Dubai, UAE is different from other businesses that offer products or services as the former is not allowed to trade in the same way as the latter. However, holding companies are a viable vehicle for managing, deploying and organising the interests and assets of a group of companies. The investors looking to maximise their assets can use a holding company to smoothly manage multiple subsidiaries.
The process of business setup in Dubai is so flexible that the founders of the holding company can choose from multiple legal business structures that offer various benefits. For example, there are no minimum share capital requirements for Limited Liability company formation in Dubai (LLC). Also, 100% ownership is guaranteed for businesses set up in the UAE free zones. And the holding company owners can also set up UAE-based subsidiaries. Business setup consultants in Dubai help investors with quick set-up services and incorporation support.
3. Business Setup in Dubai Ensures Low Risk
Many investors often think that the company formation in Dubai is complex as they are repelled by the prospect of being a single director and managing a company. This fear of risk is often evinced by the high net worth individuals with a lot of assets invested in various enterprises. However, setting up a holding company in Dubai, UAE is less risky as opposed to such common misconceptions.
A holding company effectively limits the individual shareholder risks and allows each investor to own shares in more than one company. Further, the holding companies are not liable for the debts or obligations of the subsidiaries. This ensures that the assets of the investors remain protected.
4. Offshore Offers Great Possibilities
A huge number of investors are using offshore company formation in Dubai to buy real estate properties. Offshore companies are not affected by corporate tax, income tax or even VAT liability. Holding property assets through the offshore business setup in Dubai is a great way of avoiding the intricacies of inheritance procedures. An offshore company is generally exempt from the local inheritance laws and this is a great boon for the investors who set up a holding company in the UAE through offshore companies.
If a shareholder dies the company can still own the property and the assets can be passed on accordingly. Under the offshore company formation in the UAE, the investors can avail 100% ownership and the requirement of local sponsorship is nil. Therefore, the investors are free from issues or disputes arising from ownership, liabilities, profits or losses. However, an offshore company is not allowed to trade within the UAE and residence visas are not granted. However, investors can open bank accounts under the offshore company formation in the UAE. Business setup consultants in Dubai will assist the investors in registering a holding company through the offshore channel.
Consult with the Best Business Setup Consultants in Dubai, UAE
Business setup in Dubai offers a wide range of possibilities as it is very easy to start a company as a foreigner, explore a global workforce, sponsor overseas employees and have a prosperous and peaceful life. However, investors who are looking to have an extra shield of protection to their investments and assets also benefit from company formation in Dubai. Business setup consultants in Dubai such as Jitendra Business Consultants (JBC) help such investors to set up holding companies that enable them to protect their investments while being able to manage a wide range of corporate interests remotely.
JBC has a team of highly qualified Business Setup Consultants in Dubai who simplifies the process of business setup for foreign investors. JBC imparts the foreign businessmen the required legal know-how, experience with the authorities and local expertise that help the investors easily navigate the complexities of business setup in Dubai. JBC recommends the prospect of holding company formation in the UAE for the investors who want to diversify the investment portfolio in an effective, secure, and tax-exempt jurisdiction.