Setup Holding Company In The DIFC

Setting up a holding company in DIFC, Dubai's major financial hub, involves several steps. First, you plan your business structure and identify potential benefits. Then, you register your company with the DIFC authorities. After registration, ensure you comply with the DIFC's regulations. This process can be complex, but it can lead to significant business growth.

What is a Holding Company in DIFC?

A holding company is a unique type of business entity, designed to house and manage other businesses and assets. One prime location to establish such an enterprise is within the Dubai International Financial Centre (DIFC). Setting up a holding company in DIFC offers numerous benefits - from robust legal infrastructure to a tax-friendly environment. This strategic move allows businesses to streamline operations, consolidate control, and potentially enhance financial performance.

How to Open a Holding Company in DIFC

Starting a holding company in the UAE involves a few steps, much like setting up any other business in the region. Let's walk through the process, with the assistance of RadiantBiz Consultancy, making it hassle-free for you.

Step 1: Choosing the Right Location

The first step is to pick the perfect spot for your holding company. This means finding an area that suits your business needs and goals. Not sure where to begin? No worries! RadiantBiz Consultancy can lend a hand in finding the ideal location for your company.

Step 2: Gathering Necessary Documents

Next, you'll need to gather all the legal documents and agreements required for registration. This includes contracts with stakeholders and any other important paperwork. Having everything in order ensures your company is protected in case of any legal issues down the road.

Step 3: Finding the Right Business Consultant

Now, it's time to seek out a business consultant who can guide you through the rules and regulations in Dubai. With over 15 years of experience in company formation in the UAE, RadiantBiz Consultancy is well-equipped to help you navigate all the necessary legal requirements for establishing your holding company.

Why Setup a Holding Company in the DIFC?

Setting up a holding company in the Dubai International Financial Center (DIFC) could be the best business decision you make this year. Why? Let's break it down:

• Solid Legal Protection: The DIFC has its independent legal system, which is like a strong fortress guarding your business and your investments. It's a safe place to do business.
• Tax-Free Zone: Picture this - no taxes on your income and profits for an entire half-century! That's what DIFC offers, and it means more money stays in your pocket.
• Prime Location: Think of DIFC as a bustling crossroads connecting East and West. Plus, it's right next door to rapidly expanding markets in Africa and South Asia. This location can help your business reach new heights by tapping into these diverse markets.
• Business Setup Made Easy: Starting a business can seem like climbing a mountain, but DIFC provides a clear path. They have a one-stop-shop for all administrative services, making the setup process a walk in the park.‍
• Access to Skilled Professionals: To grow, your business needs the right people. DIFC is a melting pot of talented professionals who can drive your business forward.

‍Also Read : Dubai International Financial Centre – Benefits & Process

Here are some specific advantages of establishing a Holding Company in DIFC

Thinking about starting a holding company? You might want to consider the Dubai International Financial Center (DIFC). Here's why:

• ‍Safety First: DIFC has its independent legal system, providing a secure environment for your business and investments. It's like having a safety net for your company!
• ‍Save More, Earn More: What if you didn't have to pay taxes on your income and profits for 50 years? That's a reality in DIFC, which means more savings for your business.
• ‍Perfect Spot: DIFC is strategically located between the East and West, and close to booming markets in Africa and South Asia. This position can help your business grow and reach more customers.
• ‍Hassle-Free Setup: Setting up a business can be complicated, but DIFC simplifies it. They offer a one-stop-shop for all services you need, saving you time and stress.

Costs to Setup Holding Company In The DIFC

To establish a DIFC (Dubai International Financial Centre) holding company, you'll need to cover several costs associated with legal setup, office space, and ongoing operational expenses. Here's a breakdown of the primary costs involved:

Registrar of Companies (DIFC ROC)

The Registrar of Companies oversees the legal framework for establishing a DIFC holding company, typically registered as a Private Company Limited by Shares. The key costs are:

• Name Reservation Application: $800 (processing time: 2 working days)
• Incorporation Application: $8,000 (processing time: 5 working days)
• Commercial License: $12,000 annually (processing time: 5 working days)

Data Protection

A data protection notification is mandatory when setting up a company. The costs are:

• Initial Registration: $500
• Annual Renewal: $250

Office Space

All companies in DIFC must rent office space. Options and costs include:

• DIFC Business Centre: Starting from $27,000 for a one-desk office
• Fitted Offices: $55 per square foot
• Other Buildings: Starting from $32,000 annually

Visa Costs

To operate in DIFC, companies need to secure visas for their employees:

• Establishment Card Application: $630
• PSA Deposit: $682
• Visa per Employee: From $1,500 per visa

Summary of Costs:

• Name Reservation: $800
• Incorporation: $8,000
• Commercial License: $12,000
• Data Protection: $500 (initial) + $250 (annual)
• Office Space: $27,000 (business centre) or $55/sq. ft.
• Visa Costs: $1,500+ per visa

The overall cost of setting up a holding company in DIFC starts around $27,000 for a basic setup, but can rise significantly based on office size and additional expenses. Sources indicate these costs can vary based on the office location and specific company needs​

Setting up a Holding company in the Dubai International Financial Centre (DIFC) involves several steps:

• Systematic Planning and Research: Understand your business goals and conduct comprehensive research.
• ‍Application for Initial Approval: Submit an application for initial approval through the DIFC portal.
• ‍Document Submission: Provide necessary documents such as a detailed business plan, financial projections, and proof of capital.
• ‍Obtain Licenses and Permits: Secure the necessary licenses and permits based on your company's activities.
• ‍Payment of Fees: Be prepared to pay starting costs of around $25,000, which can vary depending on your chosen building and office space.

FAQ : Holding Company in DIFC

• What are the tax advantages of a holding company?
• One of the key advantages of a holding company is its simplified tax structure. Unlike subsidiary companies, a holding company doesn't need to file separate tax returns for each subsidiary. Additionally, subsidiaries can typically distribute dividends to the holding company without triggering additional tax liabilities.

• What are two disadvantages of a holding company?
• Holding companies can face certain drawbacks. Firstly, they may encounter regulatory scrutiny due to their complex structure. Secondly, their diversified investments can lead to management inefficiencies and conflicts of interest between different subsidiaries.

• How much does it cost to set up a DIFC company?
• Setting up a company in Dubai International Financial Centre (DIFC) involves various costs. These include registration fees, annual license fees, and office space rents. The total cost typically ranges from $20,000 to $50,000, depending on the business type and size.