Learn how to structure a tax-efficient UAE holding company in 2025 to protect assets, consolidate businesses, and reduce global tax exposure.

1. What Is a Holding Company?

A holding company is a legal entity that owns shares in one or more other businesses. It doesn’t produce goods or offer services directly but exists to manage subsidiaries, centralize ownership, and protect assets. Holding companies are widely used by family offices, investors, and international business groups to structure their operations.

2. Why Set Up a Holding Company in the UAE?

Establishing a holding company in the UAE offers a wide range of strategic benefits:

📉 Tax Optimization
Dividends and capital gains are typically tax-exempt, allowing for efficient cash flow management within a corporate group.

🧩 Asset Consolidation
Centralize real estate, intellectual property, subsidiaries, and other valuable assets into one entity for better control and scalability.

🌍 International Structuring
With its global connectivity, the UAE is an ideal base for managing multi-jurisdictional businesses and investments.

🛡️ Asset Protection
Separate valuable assets from operational risks, ensuring greater legal and financial security.

3. Recommended Legal Structures

The most suitable options for holding companies in the UAE are:

• Freezone Entities (e.g., IFZA, RAKEZ, SPC Free Zone)
  ➤ Full foreign ownership, favorable tax conditions, flexibility for corporate structuring.

• Offshore Companies (e.g., RAK ICC, JAFZA Offshore)
  ➤ No local activity, ideal for international asset holding, streamlined setup process.

4. What Activities Are Allowed?

Holding companies do not engage in commercial trade or service provision. Their core activities include:

• Owning and managing shares in other companies

• Intragroup financing and intercompany loans

• Holding real estate, intellectual property, or trademarks

• Receiving and distributing dividends or profits

5. Tax Treatment in the UAE (2025)

The UAE continues to offer one of the most attractive tax regimes in the world for holding structures:

✅ Dividends received: tax-exempt
✅ Capital gains: fully exempt from tax
✅ No Corporate Tax in qualified Freezones (subject to eligibility conditions)
❗️ Compliance requirements: accounting and auditing are mandatory in some jurisdictions

6. How SLM Consultants Can Support You

At SLM Consultants, we specialize in setting up efficient holding structures tailored to your needs. Our services include:

• Tailored Freezone or Offshore structuring

• 100% remote incorporation process

• Accounting & tax compliance setup

• Advisory for real estate, business shares, and IP holding

Looking to protect your assets and optimize your group structure in 2025?
📩 Contact SLM Consultants today for a tailored consultation.