SPV Services in Dubai, UAE

In the UAE, Special Purpose Vehicles (SPVs) and holding companies offer flexible and strategic structures for businesses seeking asset protection, tax optimization, and secure investment channels.

Special Purpose Vehicle (SPV)

An SPV is a separate legal entity created to isolate financial and legal risks. Often used by companies to house specific assets, undertake specific projects, or manage liabilities, SPVs are particularly popular in real estate, asset management, and finance sectors. SPVs in the UAE are commonly established in free zones such as the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), which offer robust regulatory frameworks and simplified registration processes tailored to SPVs. These entities allow businesses to keep liabilities separate from the parent company, protecting core assets from financial or operational risks. SPVs also facilitate financing by allowing businesses to raise funds based solely on the SPV’s assets or cash flow without impacting the parent company’s credit profile.

Holding Company Setup

A holding company is a parent entity established to hold and control multiple subsidiary companies or assets. In the UAE, setting up a holding company allows businesses to streamline ownership and manage diverse operations under a single entity. Holding companies provide benefits like centralized management, enhanced control over subsidiaries, and asset protection by separating each entity's risks. They also offer tax benefits in designated free zones, with the ability to legally minimize corporate tax liabilities and enjoy no withholding tax on dividends.

Both SPVs and holding companies are popular in the UAE due to the flexible business environment, favorable tax structure, and regulatory support. Together, they provide effective tools for businesses to manage risks, protect assets, and optimize their financial structures, making the UAE an attractive destination for both local and international investors.