Abu Dhabi Development Holding Company Setup
Development Holding Company Setup in Abu Dhabi
Are you thinking of beginning your corporation in Abu Dhabi? In that case, we recommend you open your Abu Dhabi Development Holding Company in this Emirate. You might be surprised to know that this type of company provides more advantages than other types of companies in Abu Dhabi.
If you have become interested in setting up a Development Holding Company in Abu Dhabi, you should spend a few minutes with us. Here, we will explore the in-depth guide to start your Development Holding Company in this city. Plus, we will disclose some essential information about the Abu Dhabi Development Holding Company.
Abu Dhabi Development Holding Company – Overview
Law No (2) of 2018 gave rise to the development of the Abu Dhabi Development Holding Company as a public joint-stock company. The Government of Abu Dhabi owns the Abu Dhabi Development Holding Company. You might be surprised to know that this company type is a broad sovereign wealth fund based in Abu Dhabi.
While the company was initially popular as the ADDH in 2018, it rebranded as an ADQ and emerged as a significant global investor. You may feel happy to know that it was among the top 10 sovereign funds by investment volume.
You might be shocked that its investment spans critical industries of the UAE’s diversified economy, including energy, food, utility, and more. As a strategic partner of Abu Dhabi’s government, ADQ is committed to boosting the transformation of the city into a globally competitiveness and knowledge-based economy.
Types of holding company in Abu Dhabi
You can start two types of holding companies in Abu Dhabi. However, you should opt for a reliable holding corporation in Abu Dhabi. The following is the list of holding companies you can start in this emirate:
1. Onshore holding company in Abu Dhabi
Abu Dhabi lets you set up an onshore holding company as an LLC or PJSC. You must ensure a minimum of two shareholders own them abide by the law of Abu Dhabi regarding commercial corporations,
You must remember the onshore holding company, with registration with the DED. By registering your onshore holding company in DED, you must obtain the official business license as it is essential before starting your business operation in Abu Dhabi. Apart from a business license, you may also need additional permits based on what certain company entails.
2. Free Zone Holding Company in Abu Dhabi
Do you know what a free zone is? Suppose you didn’t know the meaning of free zone. In that case, you may feel happy after knowing that the Free Zone is a designated area under the United Arab Emirates (UAE) operating with its own set of rules and regulations. These zones are developed to attract foreign investment and boost economic activity within the nation.
You can choose the suitable free zone for your holding company from a wide range of free zones in Abu Dhabi, as this city has strategically created many free zones to offer a favorable business environment. Abu Dhabi Global Market (ADGM) is the perfect example of Abu Dhabi’s free zones.
You can get countless benefits by starting your holding company in these free zones. The following is the list of top advantages you can enjoy in these zones:
- 100% foreign ownership for full control over your investment
- The ability to repatriate 100% of your profit back to your home country.
- Flexibility with no currency restriction.
Apart from these advantages, you can enjoy other benefits by starting your holding company in these free zones. Therefore, you must also consider starting your Free Zone Holding Company in Abu Dhabi.
Reason to Open a Holding or ADQ Company in Abu Dhabi
As discussed before, you can get extra benefits by starting your Abu Dhabi Development Holding Company (ADQ) as compared to other types of companies in Abu Dhabi. Still, we know some of you might need to review the reasons for starting your ADQ company in this Emirate. The following is the list of top reasons to begin your ADQ or holding company in Abu Dhabi:
- Improved privacy: When starting your ADQ company in Abu Dhabi, you will get freedom from your company’s privacy concerns as the Abu Dhabi regulatory environment protects your holding company and its subsidiary company more than the direct ownership structure.
- Pro-business environment: You might be surprised to know that Abu Dhabi actively supports companies by providing tax exemptions and boosting an efficient regulatory environment.
- Tax benefits: By setting up your Abu Dhabi Holding company, you can enjoy extensive tax benefits as Abu Dhabi’s tax system is favorable. The Abu Dhabi tax system can reduce your tax burden, especially when you select a free zone structure for your ADQ company in this Emirate.
- Credit accessibility: You can now easily obtain credits for your holding company since lenders notice the financial strength of your subsidiaries. It lets you access funds and grow your business.
- Flexible setup: You can flexibly set up your holding company according to your particular requirements because of no minimum capital requirements and many corporate structures.
How to start your ADQ company in Abu Dhabi?
You may need to follow many steps to establish your Abu Dhabi Development Holding Company. However, the steps differ based on your chosen holding company type. The following are general steps to start your holding company in this emirate:
- Initially, you should select the holding company type from onshore or free zone.
- Next, you should choose an appropriate area for your ADQ company.
- After choosing the area, you should decide your company name and conform it with the relevant authority.
- After that, you should prepare documents like MoA, identity proof, and more.
- Next, you must acquire the permits and licenses required by your holding company activities.
- Later, you should choose any financial institute and give them the relevant documents to open your corporate bank account in Abu Dhabi.
- Lastly, you should officially sign up to the DED or relevant Free Zone authority to obtain your license to trade.
How can Flyingcolour Business Setup help you?
Setting up your Development Holding Company in Abu Dhabi is an excellent thing you can do to pursue a career in your life. However, you must follow several steps based on your selected holding company type to start your ADQ. Flyingcolour Business Setup can help you to follow these steps. Plus, our experts can guide you on the right path to begin your ADQ in Abu Dhabi.
To learn more about How to Start a Development Holding Company in Abu Dhabi, book a free consultation with one of the Flyingcolour team advisors.
Please note that this article was published on 24/06/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
