DMCC Introduces New Business Licenses to Enhance Flexibility for Entrepreneurs in Dubai
In an exciting move, DMCC unveils the Special Purpose Vehicle (SPV) and Holding Company licenses, designed to offer global businesses enhanced agility in asset management, investment structures, and regional operations from Dubai.
This step is part of DMCC's ongoing pursuit to cater to the ever-evolving requirements of businesses operating in the UAE. Eliminating the need for physical office space or operational infrastructure, these new licenses provide affordable, flexible frameworks tailored for multinationals, family offices, investment firms, and corporate groups seeking streamlined governance and efficient scaling.
According to Ahmed Hamza, Executive Director - Free Zone, DMCC, this initiative signifies a significant leap toward empowering companies with internationally recognized corporate practices.
The SPV license presents a straightforward method for entities involved in asset holding, securitization, and structured finance, without the burden of daily operations. The Holding Company license, on the other hand, is crafted to centralize oversight of subsidiaries and investments under a unified legal structure, boosting tax efficiency and strategic decision-making.
These licenses align with global corporate best practices and offer viable pathways for businesses to remain competitive in today's dynamic market landscape.
DMCC reiterates its dedication to maintaining a business-friendly tax environment. Although UAE Corporate Tax applies to Free Zone entities, qualifying DMCC companies can still enjoy a 0% corporate tax rate under specific conditions.
With over 25,000 member companies, DMCC remains one of the world's leading business districts, providing innovative solutions to support sustainable growth and investment in the region.
Insights: The SPV license offers cost-effective flexibility, as businesses are exempt from appointing a company secretary and holding annual general meetings. Additionally, they do not require a physical office, allowing for an affordable setup. The Holding Company license provides a central control point for managing multiple subsidiaries and investments, enhancing tax efficiency and strategic decision-making. Companies are required to establish a parent entity to own and manage subsidiaries and centralize control over multiple investments.
Source: Dubai Media Office
Incorporating enrichment data where suitable to enhance clarity and understanding without overwhelming the content.
The SPV license, designed for entities involved in asset holding, securitization, and structured finance, offers global businesses a cost-effective and flexible framework, eliminating the need for a physical office and exempting them from appointing a company secretary and holding annual general meetings. The Holding Company license, on the other hand, provides a central control point for managing multiple subsidiaries and investments under a unified legal structure, boasting enhanced tax efficiency and strategic decision-making. This offers businesses a viable pathway for remaining competitive in today's dynamic market landscape, while DMCC stays committed to promoting a business-friendly tax environment, allowing qualifying companies to enjoy a 0% corporate tax rate under specific conditions.
