Glossary · Holding Company
What Is Holding Company in the UAE
A holding company owns shares in other companies and does not trade itself: income arrives as dividends and exits as share sales. In the UAE it is usually registered as a free-zone or offshore entity — both allow pure shareholding activity with 100% foreign ownership.
Why it matters
Why it matters when opening a company
Dividends and capital gains from qualifying shareholdings can sit outside the 9% corporate tax under the participation rules — the structure is built around that.
A holding layer separates valuable shares, assets and IP from the operating risks of the subsidiary.
Mini-FAQ
Common questions
Does a holding company need an office or visas?
Most zones register holdings without a physical office and without any visas; substance requirements matter once tax exemptions are claimed.
Can one holding own several free-zone companies?
Yes — that is the standard group structure; each subsidiary keeps its own license, activity and visa quota.