The holding company activity
A company whose activity is holding can own shares and investments in other companies, and usually does not trade itself.
What it allows
Holding shares in subsidiaries, receiving dividends, managing investments within the group and sometimes providing management services to group companies.
Where it is available
Most free zones, offshore registries, DIFC and ADGM. See Holding company in the UAE for choosing a jurisdiction.
Tax
Dividends and gains may qualify for the participation exemption. Holding qualifying shares is also a qualifying activity for a Qualifying free zone person.
Common questions
Can a holding company also trade?
Some jurisdictions allow holding and trading activities together. Keeping them separate is often cleaner for tax and liability.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.