Last updated on December 10, 2021
DIFC holding company
Merging and controlling of assets is one of the key points of worry for financiers globally; and even more so in the UAE. A rising financier system, joined with the high density of family wealth in the region; call for a strong structure that can support high value individuals to manage their investments. One such structure is a DIFC holding company.
The DIFC is set to go through major development; and plans to use the extra land to build more office and disk spaces; residences, retail spaces, and as well as entertainment. That’s 13 million square feet of space devoted to the hunt of innovation; as well as plan to accommodate the needs of experts from around the world.
Such a situation helps to attract good talent from all over the world. Over 22,000 experts already live and work in the DIFC. Holding company in DIFC is able to source better managers and analysts; and access a pool of premium service providers within the center, thus making it a self-containing ecosystem.
What is a DIFC holding company?
A DIFC holding company is define as “a company that owns other companies outstanding stock”. In short, a holding company merges investments; it is use to hold shares in other companies as well as property. It is simply use to control all your assist under a one common umbrella; this is also only use for ease of management as well as reporting. This type of a company does not carry out a trade or service; they simply control existing investments. One of the main purposes of this type of a company is to seek as well as make new investments; but for this they always have a pre-determine criteria, to expand their existing groups.
DIFC provides a brilliant business structure to facilitate such activities; that is a DIFC holding company. It offers excellent options for establishing holding and exclusive investment companies.
Why setup a holding company in the DIFC?
The DIFC is a top financial center in the area for business as well as lifestyle. Establishing a holding company in Dubai is use for holding assets within the UAE; in the GCC, or anywhere else in the world. These include real property and shares in other companies in the UAE as well as rest of the world. These are the main reasons why setting up a holding company makes sense.
How to setup a holding company in DIFC
DIFC holding company is normally use for holding assets in the UAE and also other part of the world. These assets include real property (through JAFZA Offshore companies); and also shares in other companies in the UAE and other part of the world. Such a company is also commonly used to attract investments; especially given the reliability of the DIFC as a well plan jurisdiction; and the ease of familiarity with corporate Law at the DIFC Courts.
The Activity of DIFC court
The DIFC Courts creativity was the first of its kind in the region; and the laws forming the DIFC Courts were intending to ensure the top global standards. The DIFC Wills & Probate Register office allows eligible persons the ability to register their wills under Common Law; and hence providing the ability for legacy planning within the center.
You can also check one of our blog which is about IFZA company setup
Visa Services for DIFC holding company
Unlike offshore companies, a DIFC holding company is a properly working entity. It can apply for visas for their staff and their families. The Gov’t Office in the DIFC is keen to giving a wide range of services; and one of these is the issue as well as the renewal of visas. The number of visas you can apply for will depend; on both the type of business you plan on setting up as well as the size of the office; like main land you lease in the DIFC.
What is the cost of setting up a holding company?
These structures are non regulate, and hence do not come under the purview of the DFSA. The DIFC ROC is the body that approves applications.
The first year costs at the DIFC are typically US$ 20,000, with annual costs coming in at US$ 12,000 subsequently.
Benefit of setting up a holding company in Dubai
- 100% foreign ownership are allow in DIFC
- The legal basis supports cross border activities
- No restriction to hire a foreign talent or employees
- Also no restrictions on capital repatriation for a company in DIFC
- Zero percent tax for 50 years on profits, capital or assets from 2004
- Zero tax on employee income for a Holding Company in Dubai
- Independent, English-speaking, common law judicial system
- Risk base regulatory approach
- Also it is distinct from the UAE legal system
- Central to regional deal making
- High concentration of international firms, investment funds; wealth management firms, banks, as well as financial institutions
- World class regional as well as international law and auditing firms; and other professional services
- The largest fund domicile in the region
- Management offices, holding companies and family offices are located closer to the assets they own or manage
- The Middle East, Africa and South Asia (MEASA) is increasingly the center of gravity for the global economy
- Well position to harness the potential of emerging markets
- Dubai plays a central role in the growing South-South trade, principally between Asia as well as Africa.