Setting up a holding company in Dubai: taxation & asset protection

Q: What are the key stages in setting up a holding company in Dubai?

To set up a holding company in Dubai, start by choosing the appropriate jurisdiction (Mainland, Free Zone or Offshore) according to your objectives (local activities, international or asset management). Then define the legal structure (often a limited liability company). Reserve a business name, prepare the required documents (passport, CV, notarised MOA for the Mainland), submit the application and pay the fees (AED 10,000 to 30,000 depending on the jurisdiction). Finally, obtain the licence, open a bank account and, if necessary, apply for a visa. The process takes 5 to 10 days for a Free Zone, 2 to 4 weeks for a Mainland.

Q: How much does it cost to set up a holding company in Dubai?

Costs vary according to jurisdiction: - Mainland: AED 15,000-30,000 (licence, compulsory office). - Free Zone: AED 10,000-25,000 (flexible depending on the type of office). - Offshore: AED 10,000-15,000 (no physical office required). Add AED 5,000-15,000 for visas, documentation and bank charges. A Free Zone holding company is often the most cost-effective and flexible solution for international investors.

Q: Which is the most tax-efficient country?

Dubai is one of the most attractive destinations, with corporation tax at 9 % for income eligible in the Free Zone (subject to economic substance). Dividends and capital gains are exempt under certain conditions. Countries such as Luxembourg and Malta also offer advantageous regimes, but Dubai stands out for its international reputation, the absence of limits on capital repatriation and a pro-business ecosystem. However, compare local requirements before deciding.

Q: Is it possible to open a bank account?

In Dubai, bank accounts are accessible for Mainland and Free Zone structures, but more complex for offshore holding companies due to AML (anti-money laundering) controls. Local banks require documents such as a business licence, articles of association and proof of activity. Traditional tax havens (e.g. the Cayman Islands) are becoming less popular due to international regulations. Prioritise a Free Zone structure to combine tax flexibility with easy access to banking services.

5 November 2025
8 min

Are you concerned about protecting your assets while optimising your tax position in a complex regulatory environment? A holding company in Dubai could be the ideal solution.

This practical guide explains the unique tax advantages, legal flexibility and asset protection mechanisms that make Dubai a strategic destination for international investors.

Benefit from a competitive tax regime with a tax rate of 0 % on profits of less than AED 375,000 and 9 % on profits of more than AED 375,000 (with the possibility of 0 % for companies in a free zone meeting the «Qualifying Free Zone Person» criteria), more than 140 double taxation agreements, and a foreign ownership authorised at 100 %.

Find out how to structure your assets, centralise your decisions and comply with economic substance requirements, through a simplified Free Zone, Mainland or Offshore set-up.

What is a holding company in Dubai and why is it a strategic choice?

Simple definition of a holding company

A holding company in Dubai is an entity that owns shares in other companies or assets (real estate, intellectual property), without managing their day-to-day operations. Its key role is to centralise strategic supervision and protect assets by isolating them from operational risks.

For example, if a subsidiary is experiencing financial difficulties, the holding company's key assets - such as patents or real estate - may be at risk, remain beyond the reach of creditors. This model is also used to structure assets for family succession or to optimise the management of varied investment portfolios, while simplifying long-term strategic control.

Why is Dubai the jurisdiction of choice?

Dubai stands out for its a pro-business environment and competitive taxation. Free zones such as DMCC and JAFZA offer zero corporation tax on qualifying income, with exemptions on dividends and capital gains. The country benefits from more than 140 double taxation agreements.

Other advantages include the possibility of foreign ownership at 100 %, solid legal protection, and an international reputation reinforced by financial hubs such as the DIFC. Unlike opaque tax havens, Dubai combines transparency and credibility, attracting 90 % of contractors who find a balance between flexibility and stability. Its strategic geographical position between Europe, Asia and Africa makes it an attractive global hub for international operations.

The key advantages of setting up a holding company in the United Arab Emirates

Tax optimisation and asset protection

Dubai Free Zone holding companies can benefit from a tax rate of 0 % on their qualifying income, provided they meet the economic substance criteria established since 2023. For non-eligible income, a rate of 9 % applies above AED 375,000 of profits.

Capital gains and dividends are also exempt under certain conditions, reinforced by more than 140 international double taxation agreements, key to structuring groups on a global scale.

The holding company legally isolates strategic assets (property, patents) from the operating risks of subsidiaries. It thus becomes a wealth protection and estate planning tool, securing investment for future generations.

Flexibility and total control

Since the 2020 reform, foreigners can hold 100 % of shares an onshore holding company in Dubai, providing access to more than 1,000 business activities.

This structure makes it possible to centralise strategic governance (investment choices, asset management) while preserving the autonomy of the operating subsidiaries. This simplifies decision-making and strengthens the coordination of financial flows.

Strategic and financial benefits

Asset protection and isolation : Secure your valuable assets (real estate, intellectual property) against risks related to operations.
Centralised management Supervise and define global strategies for all your subsidiaries from a single point of control.
Optimising your asset structure : Make it easier to pass on your wealth and plan for future generations.
Greater credibility and negotiating power Take advantage of Dubai's reputation to strengthen your brand image and negotiate more easily with banks.
No limits on capital repatriation : freely transfer your profits and capital to your country of origin.

For structuring your project with tax and legal guarantees, Clemenceaugroup assists entrepreneurs in choosing the right jurisdiction (free zone, onshore or offshore) and in implementing their operations.

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Holding company in Dubai: which legal structure to choose?

The three main options for your holding company

Setting up a holding company in Dubai requires strategic choice between three jurisdictions Mainland, Free Zones and Offshore structures. Each option meets specific needs.

La Mainland company is managed by the Department of Economic Development (DED) and allows companies to operate on the local market in the United Arab Emirates. The Free Zone companies, Offshore structures, governed by specific authorities such as the DMCC or JAFZA, offer attractive tax advantages for international trade. Finally, offshore structures, registered in jurisdictions such as RAKICC, are dedicated to activities outside the UAE.

Comparison of holding company structures in Dubai

Features	Holding Mainland	Holding company in Free Zone	Offshore Holding
Jurisdiction	Economic Development Department (DED)	Free zone authorities (e.g. DMCC, IFZA, JAFZA)	Offshore jurisdictions (JAFZA Offshore, RAKICC)
Property	100% foreign authorised (in most sectors)	100% foreign	100% foreign
Field of activity	Local UAE and international market	International trade, local market via an agent	Outside the UAE only
Taxation - Corporation tax	9% on profits > AED 375,000	0% on eligible income (subject to conditions)	0%
Physical office	Mandatory	Required (flex-desk or physical office)	Not required
Ideal for...	Ownership of local assets and subsidiaries in the UAE	Tax optimisation and holding international subsidiaries	Global asset protection and estate planning

What is the best option for a holding company?

The choice depends on your strategy. Free Zone holding attracts by its advantageous taxation (0% corporation tax for qualifying income), its flexibility in terms of foreign ownership (100%) and its international recognition. It is particularly suited to companies wishing to structure global investments while benefiting from a solid legal framework.

If you plan to hold real estate assets or local subsidiaries, you should opt for the mainland. Offshore is for wealth management or asset protection outside the UAE. Please note that free zones require a minimum economic substance, These include local decision-making to preserve tax advantages.

Finally, the cost is a determining factor: from AED 10,000 for an offshore to AED 58,200 for JAFZA (one of the most expensive areas), the budget varies greatly. Not sure which jurisdiction is right for you? Local expertise, such as that provided by Clemenceau Group, will help you avoid missing out on tax opportunities or making costly mistakes.

The steps involved in setting up your holding company in Dubai

The simplified creation process

Setting up a holding company in Dubai is a structured but rapid process, facilitated by reforms such as the Mainland Operation Permit for Free Trade Zones. Here are the key steps to follow for an effective implementation.

Choose the jurisdiction Choose between Mainland (access to the local market, tax at 9 %), Free Zone (0 % tax on eligible income, trade restrictions) or Offshore (protection of assets, prohibition on operating locally). Each option responds to needs such as centralisation of assets or international expansion.
Defining the legal structure LLC: The LLC is the most common type because of its flexibility. It allows foreign ownership of 100 %, provided that the economic substance requirements are met.
Reserve the trade name Validated by the DED or the Free Zone authority to avoid legal conflicts and ensure compliance.
Prepare the required documents Passports, notarised Memorandum of Association (MOA) (Mainland), name reservation certificates. Companies must also provide their licence and articles of association.
Submit the application and pay the fees Mainland Permit: Costs between AED 10,000 and AED 30,000 depending on the jurisdiction. The Mainland Permit for free zones costs AED 5,000 per 6-month period.
Obtaining a commercial licence Official document validating the operation. Free trade zones offer tax benefits (exemptions on dividends and capital gains) subject to conditions of economic substance.
Open a business bank account : Requires licence, certified MOA and proof of shareholder identity.
Applying for residence visas : The holding company provides residence visa (Golden Visa 5-10 years or Green Visa for investors), offering benefits such as visa-free travel.

A holding company in Dubai optimises asset protection, tax planning (142 double tax treaties) and international expansion. Experts such as Clemenceaugroup assist entrepreneurs from A to Z, with controlled costs (AED 10,000 to 30,000). A strategic solution to structure its group internationally.

Management and governance: the importance of expert support

Establishing solid governance

The Board of Directors is the strategic pillar of a holding company in Dubai. It oversees the subsidiaries, defines group policies and manages risks. Each subsidiary requires a director to ensure operational execution. Rigorous governance guarantees sufficient capital, legal compliance and effective coordination between entities.

In Dubai, a well-organised structure makes it possible to centralise strategic decisions while protecting assets. Board members must respect fiduciary and ethical obligations, which are essential to maintaining the company's credibility.

Why work with local experts?

Setting up a holding company in Dubai involves navigating complex regulations. Mistakes, such as the wrong choice of jurisdiction or tax non-compliance, are costly. A local expert, like Clemenceau Group, masters the intricacies of the special economic zones (DMCC, DIFC, etc.) and can help you to make the right decisions. optimise your legal structure.

Their support covers registration, drafting the articles of association, obtaining licences and opening bank accounts. This avoids delays, administrative refusals and tax penalties. It's an investment for securing your project for the long term.

Ready to structure your success in Dubai?

Dubai offers an attractive ecosystem, but only one professional support to ensure smooth implementation. Turn your vision into reality with trusted partners.

Setting up a holding company in Dubai offers tax optimisation, asset protection and access to a global business ecosystem. With its Mainland, Free Zone or Offshore structures and a stable environment, it gives lasting structure to your investments. For optimum compliance, expert support is essential. Contact our experts today for a tailor-made strategy.

What are the key stages in setting up a holding company in Dubai?

To set up a holding company in Dubai, start by choosing the right jurisdiction (Mainland, Free Zone or Offshore) depending on your objectives (local activities, international or asset management). Then define the legal structure (often a limited company). Reserve a business name, prepare the required documents (passport, CV, notarised MOA for the Mainland), submit the application and pay the fees (AED 10,000 to 30,000 depending on the jurisdiction). Last but not least, get the licence, Open a bank account and, if necessary, apply for a visa. The process takes 5 to 10 days for a Free Zone, 2 to 4 weeks for a Mainland.

Which is the best country in which to set up a holding company?

Dubai stands out for its tax flexibility, political stability and network of 140+ double tax treaties. Countries such as Malta and Singapore also offer advantages, but Dubai combines a clear regulatory framework, 100 % foreign ownership and a solid international reputation. However, check the economic substance criteria to take full advantage of tax benefits.

How much does it cost to set up a holding company in Dubai?

Costs vary by jurisdiction: - Mainland : 15 000-30 000 AED (licence, office required). - Free Zone: AED 10,000-25,000 (flexible depending on the type of office). - Offshore: AED 10,000-15,000 (no physical office required). Add AED 5,000-15,000 for visas and documentation and bank charges. A Free Zone holding company is often the most economical and flexible solution for international investors.

Which is the most tax-efficient country?

Dubai is one of the most attractive destinations in the world, with a corporation tax at 9 % for income eligible in the Free Zone (subject to economic substance). Dividends and capital gains are exempt under certain conditions. Countries such as Luxembourg and Malta also offer advantageous schemes, but Dubai stands out for its international reputation, and a pro-business ecosystem. However, compare local requirements before deciding.

Is it possible to open a bank account?

In Dubai, bank accounts are available for the Mainland and Free Zone structures, but more complex for offshore holding companies due to AML (anti-money laundering) controls. Local banks require documents such as business licences, articles of association and proof of activity. Traditional tax havens (e.g. Cayman Islands) are less and less popular because of international regulations. Prioritise a Free Zone structure to combine tax flexibility and easier access to banking services.

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