You get an effective tool that allows you to increase your business profitability.
The United Arab Emirates is a unique low-tax jurisdiction. Any business controlled from
the UAУ territory does not pay taxes (except for 5% VAT when working in the domestic
market). There is a right of free deposit and withdrawal of capital in this country, which
gives investors the opportunity to get the maximum benefit from their activities. The
state guarantees the safety of investors' assets and low transaction costs, absence of
inflation and exchange controls. These factors motivate businesspersons to choose
this country for establishing effective holding structure.
Optimize the tax base
using the international
agreements on the
avoidance of double
You can organize the international structure of your
holding to minimize tax deductions and receive
maximum legal profits from international activities. The
recipient of the dividend, the parent company and
subsidiaries should meet the requirements agreements
on the avoidance of double taxation.
Even if there is no agreements on the avoidance of
double taxation between the country of key company
incorporation and the UAE, you can use complex holding
structures, e.g. a mixed holding established in several
jurisdictions. The parent company, located in one of the
UAE jurisdictions, will manage the movement of assets
in all divisions and distribute financial flows in order to
minimize risks and optimize tax deductions.
Use the opportunity to
conceal and protect the
It is possible to conceal the end beneficiary of the
business completely due to the laws of the UAE and the
rules for various types of companies incorporation
regulated by different state authorities.
Commercial law and judicial practice of the UAE allow
making shareholder agreements, which is a legal instrument to protect the interests of each business
participant. These agreements allow smoothing out
possible conflicts between partners.
It is possible to conceal the end beneficiary by legal
means using one scheme developed and successfully
used by the SORP Group experts. We offer effective
structures for organizing activities that keep
beneficiaries confidential. These structures are reliable
tool for doing business in the UAE.
Holding is a clearly structured chain. Each link of this
chain performs a specific function. Holding structures
may unite an unlimited number of companies
conducting their activities both within one country and
abroad. Some executives have difficulties to conduct
different activities using a single legal entity. You can
solve this problem using holding structure. It allows you
to create multi-business with convenient management
and control system in the UAE.
If the holding has a financing company, then it is
established in the place with the cheapest financial
resources and minimal taxation of interest income.
Management companies are established in the
jurisdiction with the most favorable conditions for the
business. The UAE is an attractive jurisdiction for many
Organize cash flow within
the group, including
mergers and acquisitions of existing assets abroad
The state has created all the conditions for the effective
operation of holding structures in the UAE. You can
manage financial flows centrally and move capital freely between your divisions around the world. You can
deposit and withdraw funds, use the lack of corporate
income taxes, arrange loans issuing from the parent
company to subsidiaries to optimize the tax base and
perform other operations.
All these tools allow managing financial flows quickly
within the structure, making it possible to withdraw
funds in the preferred jurisdiction and to minimize the
tax burden. Considering the world trend to tighten
control over the circulation of funds, we recommend to
seek expert advice to develop a proper scheme for
restrictions within the
Companies within the holding structure can provide
services and supply goods to other units of this holding
company at independently fixed prices that are not tied
to market prices. This technique allows you to minimize
the tax burden for all companies in the structure. The
legal regulation of the so-called “transfer pricing” has
significant differences in the different countries.
Therefore, we recommend contacting lawyers who know
the intricacies of international law to create the most
Consolidate assets and
provide transparency in
The parent company of the holding in the UAE allows
you to consolidate all assets of your business and
achieve high rates of company capitalization. It could be
a sign of financial stability and your solvency in the long
term. This allows you to get cheap credit resources,
receive investments from a strategic investor,
participate in serious tenders and enter into large contracts.
You will be able to use ready-made holding companies
established in the UAE, which are older than 2 years. It
could help you to provide audit and balance sheets for
previous periods in accordance with international
standards to confirm the stability of your business. By
certifying all reports in accredited auditing company in
the UAE, you raise the company's status in the eyes of
contractors and thereby confirm the transparency of
your tax and accounting calculations.
Create a business
Holding structure in the UAE allows foreign investors to
create consortia under their control. It makes possible
to bring their goods and services under the flag of the
UAE to international markets, including the countries of
the Persian Gulf. It provides an opportunity to use the
loyal attitude of the business community and privileges
of companies established in the UAE.