2. • A holding company is a type of financial
corporation that owns a controlling interest in
other businesses, known as subsidiaries.
• The parent corporation has influence over the
subsidiary's policies and management decisions,
but it does not handle the subsidiary's day-to-day
operations.
• Holding companies are immune from losses
incurred by subsidiaries, therefore if a subsidiary
goes bankrupt, the creditors of the subsidiary
cannot pursue the holding company.
3. REQUIREMENTS FOR
FORMING A HOLDING
COMPANY IN DUBAI
• It must appoint a management board which will be in
charge of creating a policy for the organization of the
subsidiary(ies)
• he management board must also supervise the
activities undertaken by its subsidiary or subsidiaries
• the holding company must ensure that the subsidiary
(ies) have the necessary capital to carry out their
operations
• The holding will make the decisions with respect to the
contracts and arrangements made the subsidiary
5. • The holding company is an excellent tax
optimization solution, as it is not imposed with
any tax in Dubai
• The Dubai holding company can also be a good
asset protection solution for foreign entrepreneurs
• Through a holding company, a local or foreign
investor can benefit from enhanced privacy
• The holding company also offers streamlined
management procedures with respect to the
subsidiaries.