A Holding Company in the UAE is a business entity established to own shares or assets in other companies, such as subsidiaries or investments, rather than conducting operational activities itself. It can be set up on the mainland or in free zones, with free zone holding companies enjoying 100% foreign ownership and tax exemptions on dividends and capital gains, while mainland ones may require a local sponsor depending on the structure. Subject to the UAE’s 9% corporate tax on profits exceeding AED 375,000 ($102,000) since 2023 for taxable income, it offers limited liability, protecting the parent entity’s assets. This structure is ideal for investors or conglomerates aiming to manage diverse portfolios—spanning real estate, tech, or trade—while leveraging the UAE’s strategic location and business-friendly policies. It provides a flexible framework for expansion and asset consolidation.
