Dubai Multi Commodities Centre (DMCC) hasannounced the introduction of two new licensing categories, Special PurposeVehicle (SPV) and Holding Company, designed to offer greater flexibility forbusinesses looking to structure regional operations and manage assets moreefficiently.
These licences address the growing demandfor simplified, cost-effective corporate structures that do not require aphysical office. They are aimed at multinational groups, family offices, andinvestment firms seeking streamlined mechanisms for holding assets andoverseeing investments across jurisdictions.
SPV Licence Overview
The SPV licence enables businesses to setup non-operational entities used for specific financial or legal objectives,such as asset holding, securitisation, or structured finance transactions. Itprovides a straightforward structure without the need for day-to-dayoperations, making it suitable for investment holding and risk isolation.
Holding Company Licence Overview
The Holding Company licence allows for theconsolidation of ownership of multiple subsidiaries or investments under asingle corporate structure. This facilitates improved governance, potential taxoptimisation, and more centralised strategic oversight. It is particularlysuited to businesses seeking to manage cross-border entities and complexownership structures.
Regulatory and Tax Considerations
Both licences align with global bestpractices and offer access to Dubai’s favourable regulatory environment.Companies operating under these categories can benefit from a 0% UAE CorporateTax rate, provided they meet the conditions required to qualify as Free ZonePersons under the UAE’s Corporate Tax regime.
Strategic Impact
This initiative strengthens DMCC’s positionas a destination of choice for international trade and investment. By removingthe requirement for physical office space and offering simplified structuringsolutions, DMCC is addressing key considerations for businesses navigatingregional growth and cross-border investments.
These developments are expected to attracta wide range of entities looking for flexible, transparent, and tax-efficientways to structure their operations and investments in the Middle East.
To find out how Alpadis can support thesetup and management of SPVs or Holding Companies in DMCC, contact us today.
