How to Start a Holding Company in DIFC?

Start a Holding Company in DIFC

Are you looking for ways to expand your business operation and ways to maximize your profits? If yes, you should consider starting a Holding Company in DIFC. We are sure you might be wondering why you should begin your holding company in the DIFC. The DIFC is the ruling financial center in the Middle East, Africa, and South Asia (MEASA) region. Apart from this, other reasons exist to establish your holding company in this area.  Are you desperate to know the reasons to start your holding company in DIFC? if yes, you should read this article. Here, we will explore the top reasons to begin your holding company in this area. Plus, we will disclose the steps you need to follow to start your holding company in this free zone. 

Holding Company -  Overview

Before knowing the reasons and steps to Open a Holding Company in DIFC, you should dive into the basic overview of the holding company. Understanding the basics of the holding company lets you avoid any mistakes while opening or running your holding company in DIFC.  The holding company is a business entity type that does not involve itself in any operational activities. This company holds outstanding stocks in other companies, consolidating investment within a unified umbrella for streamlined management and reporting. As a holding company owner, you must manage existing investments and improve your company’s portfolio via new investments on the basis of pre-determined criteria.  As we have discussed in the previous paragraph, a holding company is designed to manage other businesses and assets. This strategic step lets business owners like you consolidate control, streamline operations, and enhance financial performance.   

Top benefits of starting your holding company in DIFC

You can access numerous benefits by establishing your holding company in the Dubai International Financial Centre (DIFC). These benefits are among the top reasons to begin your holding company in this free zone. Below are the top advantages of setting up your Holding Company in DIFC:  

1. Tax advantages

You can get attractive tax benefits by setting up your holding company in the Dubai International Financial Centre (DIFC). The UAE has executed a favorable tax regime to support entrepreneurs like you.  What’s more? You can also enjoy exemptions from customs duty and withholding tax by starting your holding company in DIFC. In addition, you can access restrictions on the repatriation of your holding company’s capital and profit. You can use these advantages to boost the profitability and long-term sustainability of your holding company.   

2. Prime location 

The prime location is another perk of beginning your holding company in DIFC. DIFC serves as a bursting crossroad connecting East and West. In addition, this free zone is located next door to the increasingly boosting market in South Asia and Africa. This beneficial location will help you to tap into these diverse markets.   

3. Access to Financial Services and Expertise

DIFC provides many financial services and access to the pool of experienced professionals, such as legal, financial, and investment advisors. You can get valuable suggestions on risk assessment, corporate structure, and other finance-related topics from these experts. These professionals can assist you in identifying and evaluating potential investment opportunities, conducting due diligence, and more. 

4. Solid legal protection 

By starting your holding company in DIFC, you will also get access to robust legal protection.  The DIFC has an independent legal system to safeguard your business and investment. Therefore, you can worry-free start your holding company at DIFC.   

5. Reputable jurisdiction

You can also get a reputable tag by beginning your holding company in the DIFC. Do you know why? If not, you should understand that DIFC has established itself as a reputable and well-regulated that can improve your holding company’s credibility and reputation.   

What are the steps to start your holding company in DIFC?

You must perform several steps if you want to Start a Holding Company in DIFC. Performing these steps properly is essential to begin your holding company in this area. Therefore, we recommend you understand and follow the following steps to initiate your holding company:  

1. Research and planning 

Before starting your holding company in DIFC, you must conduct thorough research and plan for your potential holding company. For this, you should identify the investment goals, consider the holding company structure, and access the legal and regulatory framework under DIFC. In addition, you should determine the investment type you will make and evaluate the potential financial and operation implications.   

2. Choose a legal structure

Once conducting deep research and planning, you should choose a reliable legal structure for your holding company at DIFC. You can establish your holding company as an LLC, Free Zone entity, or a Recognised company. At this point, you should consult the Flyingcolour Business Setup to seek help selecting the perfect legal structure for your holding company.    

3. Obtain essential licenses and permits

Next, you should obtain the necessary permits and licenses for your holding company. These permits include getting a license from the Dubai Financial Services Authority (DSFA). For this, you should submit documents like business plans, financial proof, and more. You should also comply with the DFSA’s regulations and represent a robust business plan to acquire essential permits.   

4. Establish corporate governance and compliance 

Lastly, you must adhere to strong corporate governance practices and maintain compliance with the local regulations for your holding company in DIFC. For this, you should engage with legal and financial professionals to guide you in setting up a proper governance structure for your holding company and ensuring compliance with the applicable rules or laws and regulations.   

How Can Flyingcolour Business Setup help you?

Starting your holding company in the DIFC is an excellent thing you can do for your business. You can enjoy countless benefits by beginning your holding company in this area. Flyingcolour Business Setup Services can help you open a Holding Company in DIFC. We have a team of experts to help you perform all the legal and complex steps for starting your holding company in the DIFC.  To learn more about the Start a Holding Company in DIFC, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  04/07/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.