A holding company is a business set up mainly to own shares, assets, or other companies. Instead of running day-to-day operations, it focuses on managing investments, protecting assets, and keeping everything under one roof. More and more UK investors are choosing to set up holding company in Dubai from the UK, and it’s e easy to see why.
Thanks to its location between Europe, Asia, and Africa, along with strong trade ties with the UK, Dubai has become the perfect base for British businesses that want to expand and grow worldwide.
What is a Holding Company in Dubai?
A holding company in Dubai is a type of business entity created to own and manage assets, rather than carry out day-to-day trading or commercial activities. Its main purpose is to control shares in other companies, manage subsidiaries, and hold valuable assets like intellectual property, real estate, or financial investments.
However, it’s essential to note that a holding company in Dubai cannot directly engage in commercial operations, such as selling products or offering services. Instead, its role is to oversee, organise, and protect investments under one structure.
This makes it a popular choice for UK investors who want to simplify management, reduce risks, and build a strong base for global expansion.
What are the Benefits of Holding Company in Dubai for UK Businesses?
There are several main reasons why UK investors are increasingly choosing Dubai to set up holding companies:
1. Tax Advantages
Dubai offers limited corporate tax, 0% personal income tax, and no capital gains tax. This allows UK investors to maximise profits, reinvest earnings, and manage their wealth more efficiently compared to higher-tax jurisdictions.
2. Asset Protection & Risk Isolation
A holding company helps protect valuable assets, like subsidiaries, IP, and real estate, by keeping them separate from operational liabilities. Should one subsidiary face legal or financial troubles, your core assets remain shielded.
3. Ease of Global Expansion
A Dubai holding company makes it simpler to expand into emerging markets in the Middle East, Africa, and Asia. Many free zones also allow for 100% foreign ownership, giving UK investors more control over their subsidiaries.
4. UK–UAE Relations
The UK and UAE share strong business and investment ties. The Double Taxation Agreement (DTA) between the two countries helps avoid paying tax twice on the same income, providing further financial advantages.
5. Reputation and Global Credibility
Having a holding company registered in Dubai can boost international credibility. It shows investors, partners, and clients that your business operates from a respected global hub.
Mainland vs Free Zone Holding Company in Dubai
When UK entrepreneurs setting up a holding company in Dubai, they usually have two options: Mainland or Free Zone. Both come with unique advantages, depending on your business goals.
Mainland holding company
A mainland company is registered with Dubai’s Department of Economic Development (DED). This is great for owning/controlling UAE onshore subsidiaries and investing locally and abroad.
Key Features:
- Can hold shares in mainland, free zone, or even foreign companies.
- Allowed to own real estate property in Dubai (subject to approval in certain areas).
- Flexibility to open branches or subsidiaries across the UAE.
- Must comply with UAE Commercial Companies Law.
- No restriction on the number of subsidiaries under its control.
Free zone holding company
A free zone company is registered inside a specific free zone (e.g., DMCC, DIFC, JAFZA, IFZA, DAFZA, Dubai South). Ideal for international structuring, lighter setup, and one-stop administration.
Key Features:
- 100% foreign ownership allowed.
- Simplified incorporation process.
- No corporate tax (in most free zones, unless subject to UAE’s Corporate Tax rules).
- Can only directly hold shares in free zone or foreign companies, not in mainland companies (unless through specific approvals).
- Real estate ownership usually limited to designated freehold areas.
Documents Required for UK Investors
To establish a holding company in Dubai, UK investors need to prepare and submit certain documents.
- Passport copies
- Passport-size photographs
- Proof of residence (Utility bill, tenancy contract, or bank statement)
- Bank reference letter
- Certificate of Incorporation of the parent company
- Memorandum & Articles of Association (MoA/AoA)
- Board Resolution authorizing the setup of the Dubai holding company
- Certificate of Good Standing (issued by Companies House or similar authority)
- Passport copies of authorized signatories and UBOs (Ultimate Beneficial Owners)
Note: Documents from the UK may need to be notarized, legalized, and attested by the UAE Embassy in London and the UAE Ministry of Foreign Affairs before submission in Dubai.
How to Set Up a Holding Company in Dubai from the UK?
Setting up a holding company in Dubai as a UK investor is a straightforward process if you follow the right steps. Here’s how it works:
1. Choose the Jurisdiction
Decide whether to register your holding company in the Mainland (via Dubai Department of Economic Development) or a Free Zone (like DMCC, DIFC, JAFZA, or IFZA). Your choice depends on whether you want to hold UAE onshore companies, real estate, or mainly international subsidiaries.
2. Decide the Legal Structure
Most holding companies are set up as a Limited Liability Company (LLC) in Mainland or a Free Zone Company (FZ-LLC). This defines the liability of shareholders and flexibility for future expansion.
3. Reserve a Trade Name
Pick a company name that follows UAE naming guidelines (no offensive or religious terms, must reflect the business activity).
4. Prepare and Submit the Application
Submit the application along with shareholder details and required documents to the respective authority (DED or Free Zone authority).
5. Draft the Memorandum of Association (MoA)
The MoA sets out:
- Shareholding structure (who owns what %).
- Company purpose (holding activities, managing subsidiaries, owning assets).
- Management rights and voting powers.
For free zones, you may also need to prepare Articles of Association (AoA). These documents must be signed by all shareholders and sometimes notarized.
6. Register with the Authorities
Submit the final documents along with your MoA/AoA to the relevant authority. Pay the government fees for incorporation and licensing. Once approved, your holding company is officially registered in Dubai.
7. Obtain the Holding Company License
You will be issued a trade license that legally recognizes your entity as a holding company. The license allows you to own shares in subsidiaries, manage intellectual property, hold real estate, and oversee investments, but not engage in direct commercial trading.
8. Open a Corporate Bank Account
Apply for a business bank account in Dubai to handle investments, dividend distributions, and asset management.
9. Visa & Compliance (if needed)
If shareholders or directors plan to reside in Dubai, you can apply for residence visas. Ensure compliance with UAE’s UBO (Ultimate Beneficial Owner) rules and annual reporting requirements.
Note: At Shuraa UK, we assist UK investors with every step – from paperwork and approvals to banking and compliance, making the entire process smooth and stress-free.
What is the Cost of Holding Company Setup in Dubai from UK?
The cost of setting up a holding company in Dubai from UK can vary based on where you register – mainland or free zone and the scope of your activities.
On average, starting a holding company in Dubai can cost between AED 15,000 to AED 30,000. This usually covers registration, license, and basic administrative fees.
Free zones also offer packages that might include office space and visa quotas, which can affect the final price. For a mainland holding company, costs are slightly higher. This depends on approvals from government departments, license type, and office requirements. Other expenses may include legal documentation, translation, notary fees, and visa processing for directors or shareholders.
At Shuraa UK, we provide a clear cost breakdown and help UK investors choose the most cost-effective option for their holding company.
How Shuraa Can Help UK Investors
For UK businesses that want to grow internationally and protect their assets, setting up a holding company in Dubai is a smart choice. Dubai’s tax benefits, global connections, and business-friendly laws make it an ideal place to manage investments.
With Shuraa UK, the process becomes simple. We handle everything – from paperwork and approvals to legal setup and bank account opening. Our team also helps with tax planning and guides you through double taxation treaties, so you get the most out of your business structure. If you’re ready to take your business global, Shuraa is here to make it easy for you.
