Business Insights

Manula Ranasinghe
What is the License Cost for a Holding and Investment Company in Dubai?
What is the License Cost for a Holding and Investment Company in Dubai?

Understanding the cost of setting up a holding and investment company in Dubai is often the first step and one of the most strategic decisions an entrepreneur or corporate group can make.
The UAE offers a favourable regulatory environment, zero corporate tax on qualifying income, and full foreign ownership through free zones, making it an ideal jurisdiction for structuring group assets and managing cross-border investments. However, the total setup cost depends on several factors, including business activities, shareholder structure, and additional services.
This guide breaks down the license cost, activity codes, setup process, and key considerations for establishing a holding and investment company at Dubai South Business Hub Free Zone.
What is a Holding and Investment Company in Dubai?
A holding company is a legal entity established to own shares in other companies, manage assets, or control subsidiary businesses. Rather than conducting direct trading or service operations, it holds equity in other entities and generates returns through dividends, capital gains, or management fees.
Common uses include grouping family-owned businesses under one umbrella, establishing a regional headquarters in the UAE, managing international investments, and facilitating succession planning. For a detailed overview of how corporate holding structures work, read our guide on holding company setup in Dubai.
Relevant Activity Codes for a Holding and Investment Company
The following activity codes apply to holding and investment companies at Dubai South Business Hub Free Zone:
6420.00 — Holding Companies
6499.02 — Own-Account Investment Activities, Such As By Venture Capital Companies, Investment Clubs Etc.
6499.84 — Investment In Commercial Enterprises and Management
6499.85 — Investment In Industrial Enterprises and Management
6499.86 — Investment In Agricultural Enterprises and Management
6499.88 — Investment In Tourism Enterprises and Management
None of the holding and investment company activities codes listed above at Dubai South Business Hub Free Zone carry third-party approvals and are exempted from AML / DNFBP. You can explore the full list of available activities through the business activities directory.
How to Check and Reserve Your Company Name
Before diving into activity codes and costs, your first practical step is confirming your company's name. Choosing the right company name is the foundation of your setup. The company name check tool at Dubai South Business Hub Free Zone makes it simpler and quicker to verify whether your preferred name is available and compliant with UAE naming rules and regulations. With just a few clicks and under 60 seconds, you can complete your company name availability search, reserve your name, and move forward with your company formation with confidence.
License Cost for a Holding and Investment Company in Dubai
The cost of setting up a holding and investment company at Dubai South Business Hub Free Zone starts at AED 12,500. This base cost covers your company license and flexi-desk. Your total setup cost will vary based on the number of shareholders, the number of additional activities selected beyond the first five, and any value-added services such as visa processing or bank account assistance. Each additional activity beyond the first five costs AED 2,000. Use the business setup cost calculator to generate a transparent, itemised estimate with no hidden fees.
Typical Cost Breakdown
Company license: from AED 12,500
Additional business activities: AED 2,000 per activity beyond the first five
Investor visa: charged separately based on your selection
Emirates ID and medical: charged separately
Bank account assistance: available as an add-on service
How to Set Up Your Holding and Investment Company at Dubai South Business Hub Free Zone?
The setup process is fully digital and straightforward. You do not need to be physically present in Dubai to register your company.
Submit your details and business requirements through the online application
Select your holding or investment activities
Choose the number of shareholders and any additional services
Receive your cost estimate and proceed to payment
Receive your license documentation digitally
For entrepreneurs looking to establish a regional headquarters alongside their holding structure, explore the holding and regional HQ setup page.
Do I Need a Physical Office for a Holding Company in Dubai?
No. Holding and investment companies can operate with a flexi-desk arrangement. This gives you a registered business address and access to co-working facilities without the cost of a dedicated physical office. If your activities require a physical presence, independent facility options are also available at Dubai South Business Hub Free Zone.
Corporate Tax Considerations for Holding Companies
Since the introduction of UAE Corporate Tax, holding companies need to understand their obligations carefully. Qualifying free zone businesses can benefit from a 0% tax rate on qualifying income.
However, the specific activities and income streams that qualify require careful review. Read our article on UAE corporate tax changes for a clear breakdown of what applies to holding structures.
For a broader view of how subsidiaries, branches, and holding entities compare, see our guide on corporate structuring in Dubai.
Visa Eligibility for Holding Company Shareholders
Shareholders and directors of a holding company registered at Dubai South Business Hub Free Zone are eligible to apply for UAE investor visas. If you are planning to use your Dubai company for long-term residency, read our guide on the UAE Golden Visa for detailed eligibility information.
Frequently Asked Questions
What is the minimum cost to set up a holding company in Dubai?
The license starts at AED 12,500 at Dubai South Business Hub Free Zone. Your total cost will depend on the number of shareholders, visa requirements, and any additional services selected. For ongoing operational support after setup, you can explore residency services, visas, taxation, VAT registration, and business support through Beyond Hub, designed to help businesses operate and scale efficiently in the UAE.
Can a holding company own shares in mainland UAE companies?
Do I need a physical office for a holding company in Dubai?
Can a foreigner own 100% of a holding company in Dubai free zone?
What is the difference between a holding company and an investment company in Dubai?
Is a holding company subject to UAE Corporate Tax?
What activities is a holding company NOT allowed to do in Dubai?
Can I use a holding company to apply for a UAE investor visa?
Do I need to deposit share capital for a holding company in Dubai South Business Hub Free Zone?
How long does it take to set up a holding company in Dubai?
Start Your Business with Dubai South Business Hub Free Zone
Start Your Business with Dubai South Business Hub Free Zone
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