Comprehensive Guide to Holding Company Licenses in Dubai, UAE
May 19, 2022
September 23, 2025
June 15, 2025
September 23, 2025
Topic Summary
1. Purpose and Benefits of a Holding Company Licence
A holding company licence in Dubai enables investors and business proprietors to consolidate and manage subsidiaries, shares, and diverse investments under one legal entity. This structure is ideal for asset protection, capital optimisation, and strategic governance without engaging in commercial trading or retail activities.
2. Licensing Authorities and Jurisdictions
Holding company licences in Dubai can be obtained through various jurisdictions, including the Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC), and mainland Dubai. Each authority offers distinct regulatory frameworks and compliance requirements tailored to different business needs.
3. Regulatory Compliance and Corporate Governance
Entities holding this licence must comply with UAE Commercial Companies Law and relevant free zone regulations. This includes appointing qualified directors, maintaining transparent shareholding records, and conducting annual auditing and reporting to ensure regulatory adherence and corporate governance standards.
4. Tax Efficiency and Legal Advantages
Dubai’s favourable tax environment renders holding company structures particularly attractive, with exemptions on dividend distributions and capital gains. The jurisdiction's extensive network of double taxation treaties further facilitates cross-border investment and income repatriation.
5. Application Process and Documentation
Securing a holding company licence entails submitting a detailed business plan, memorandum and articles of association, identification of shareholders and directors, and proof of compliance with anti-money laundering (AML) regulations. The approval timeline varies by jurisdiction but generally ranges from two to six weeks.
Whether you're an investor consolidating assets, a founder building a future-focused structure, or a group managing IP and equity across ventures, a holding company license in Dubai gives you a smarter way to operate.
No trading, no sales, no storefront.
Just full legal control over your subsidiaries, shares, and investments — all in one place. And right now, it’s a model more businesses are turning to.
Holding company registrations in UAE free zones have risen year-on-year, driven by demand for tax efficiency, IP protection, and succession-ready structures.
Here we break down the structure, legal requirements, and benefits of setting up a holding company in the UAE.
You will also learn how Meydan Free Zone simplifies this process with 100 percent ownership, fast digital setup, and strategic flexibility.
Definition and Purpose of a Holding Company License in Dubai
A holding company license in Dubai enables you to own shares in other companies, manage assets, and oversee corporate structures.
It does not allow direct trading of goods or services.
Holding companies are commonly used to:
● Own and protect intellectual property
● Manage group structures and subsidiaries
● Consolidate real estate or equity holdings
● Limit operational liability while maintaining strategic control
This model is popular in investment, real estate, family offices, and multi-brand ownership.
Advantages of Setting Up a Holding Company in the UAE
A holding company license UAE provides long-term structural and financial advantages.
It is designed to give business owners and investors full control over their asset management strategies whilereducing risk exposure.
Key benefits include:
● No personal income or capital gains tax
● 100% foreign ownership in free zones
● Simplified shareholder and IP management
● Asset protection under one corporate umbrella
● Improved succession planning for family-owned businesses
Essential Requirements for a Holding Company License in Dubai
To meet Dubai holding company requirements, the following conditions generally apply:
● Select a legal structure, typically an LLC or a free zone entity
● Register your business activity under a holding or investment code
● Provide identification documents for all shareholders
● Maintain a registered business address
● Comply with UAE regulations on ownership and shareholding
Meydan Free Zone supports applicants through every stage, ensuring legal compliance and smooth processing.
Holding Company Formation Process in Meydan Free Zone
The holding company formation process in Dubai can be completed entirely online through Meydan Free Zone’s digital platform.
Steps include
- Choosing a legal structure and business activity
- Registering your trade name and shareholder details
- Uploading KYC documentation
- Receiving digital copies of your license, MoA, and share certificate
- Opening a corporate bank account
Once formed, your holding company can acquire assets, oversee subsidiaries, or hold equity in local or global businesses.
Cost Structure for Holding Company Licenses in Dubai
The holding company costs in Dubai business owners incur vary depending on the jurisdiction, visa requirements, and added services.
● MeydanFree Zone licenses start from approximately AED 12,500
● Mainland licenses are generally higher due to mandatory office space
● Additional charges may apply for visa allocations, corporate banking, or legal endorsements
Meydan Free Zone offers flexible license packages to accommodate both small investors and larger multi-entity structures.
FAQ’s
1. What is a holding company license in Dubai used for?
It is used to manage and control assets, subsidiaries, and investments, without engaging in direct trade or service delivery.
2. Can a holding company own other businesses?
Yes. A holding company can legally hold equity in UAE-based and international entities.
3. What documents are required for a holding company license?
You will need passport copies of shareholders, a trade name, selected activity, andproof of address. Meydan Free Zone will guide you through submission.
4. Is it possible to set up a holding company in Meydan Free Zone?
Yes. Meydan Free Zone supports holding company structures with 100 percent ownership and fast-track registration.
5. What is the difference between a holding and a trading license?
A holding company manages assets and equity. A trading license allows the sale of physical goods or services.
6. Can a holding company generate income?
Yes. It can earn income from dividends, royalties, rent, and investments but not from operational trade.
7. How much does a holding company license cost in Dubai?
Free zone licenses start around AED 12,500. Final cost depends on visa allocations and company structure.
8. What is a UAE parent company license?
It is a license that gives a business legal authority to own and manage one or more subsidiaries in the UAE or abroad.
9. Do I need physical office space?
Not with Meydan Free Zone. A digital office solution is available and meets licensing requirements.
10. Can I apply for visas under a holding company license?
Yes. You can allocate and apply for UAE residency visas under your holding company license in Meydan Free Zone.
.jpeg)