Opening an Investment Company in the UAE: Why the Emirates is an Ideal Holding Jurisdiction for Investments in the US, Europe, and Asia

If you've outgrown direct investment in your own country as an individual and are considering the next level, a safer, more profitable, and longer-term option, consider the UAE. Unlike other popular jurisdictions for this purpose, such as Luxembourg or Singapore, the UAE offers numerous tax incentives that will save you millions in the long run.

The legal consulting firm Antwort Law works with international business owners, VHNWs, and UHNWIs, who trust us to create secure and strategically effective structures to maximize benefits for themselves and future generations. In this article, we'll explain why an investment holding company established in the UAE generally performs better than one established in other countries.

At a certain stage of development, a truly effective investor inevitably comes to the conclusion that investing directly in their own name or through a local company in their home country is a rather risky and expensive way to acquire truly large wealth. Here's why:

1. Double taxation: without a holding company, an investor can lose up to half of their income.

• Dividends from the US are withheld at a rate of 30% WHT,
• in Europe, it's 15-25% (Germany, France, Italy).
• The country of residence often requires its own tax on top of the withheld amount.

2. Lack of asset protection: investments from an individual can easily be seized or frozen.

3. Difficulty in passing bank compliance: An individual investor raises questions:

• Where is the money coming from?
• Why are investments coming from a "risky country"?
• Why is there no corporate structure?
• Who is the auditor?

4. Finally, limitations in scaling: Individual investors are often denied:

• opening bank accounts with US custodian banks (specialized depository banks that hold and administer investment assets such as stocks, bonds, funds, and company shares
• participating in venture capital rounds
• opening brokerage accounts for a large portfolio and other opportunities

An advanced investor develops an ownership structure in advance, as it determines how much taxes they will pay, how well their assets will be protected, whether there will be compliance issues in the US or Europe, and many other fundamental issues that determine the safety and profitability of their investments. A properly structured investment holding company in the UAE is a tool that minimizes risks and transforms chaotic investments into professionally structured capital. You will be able to:

1. Significantly save on taxes compared to investing as an individual:

• US WHT can be reduced to 0-5%,
• European withholdings are subject to DTT rates (often 0-5%),
• capital gains in the UAE are tax-exempt,
• the UAE does not tax dividends from foreign assets.

2. Protect assets from the owner's personal risks, as they will be protected by UAE corporate law and are not directly linked to you.

3. Complete compliance checks in various countries, including the US and EU, because a holding company offers:

• a clear jurisdiction,
• transparent UBO,
• corporate documentation,
• a comprehensive AML profile,
• a high level of trust from the US and EU. 4. Unlimited opportunities for scaling

Having decided to take your investments to a whole new level of protection and service, you'll be faced with the question of choosing the right jurisdiction for your goals. As lawyers working with all the major countries popular for establishing investment holding companies, we note that the UAE is one of the few, comparable in level to Singapore and Luxembourg, yet more accessible, flexible, and several times more cost-effective. This is due to the UAE's government policy of attracting capital rather than taxing it:

1. 0% tax on foreign dividends, capital gains, and income: The UAE does not tax

• dividends from foreign companies,
• capital gains,
• income from foreign sources,
• payments from portfolio investments.

This is one of the strongest tax advantages in the world.

2. Over 140 double tax treaties (the UAE is the world leader in DTTs), allowing for reduced withholdings, tax exemptions, tax refunds, and legal structure optimization.

• USA,
• Germany,
• France,
• Italy,
• China,
• India,
• UK,
• Canada, and others

3. Reputation as a clean and transparent jurisdiction: Unlike Cyprus, Hong Kong, or offshore jurisdictions, the UAE

• is not subject to sanctions pressure,
• is not considered a "gray zone,"
• does not require excessive proof of the origin of funds,
• complies with international AML standards.

4. World-class asset protection: the UAE provides

• no retrospective taxes,
• a stable legal system,
• regulatory predictability,
• protection from foreign policy risks.

5. Affordability and speed: the UAE offers a similar level of protection, but 3-5 times cheaper and faster. Luxembourg and Singapore, in turn, require

• complex substance,
• expensive director services,
• mandatory audits.

Also, such a holding company provides the opportunity to freely 

Open accounts in many countries, as UAE companies have a much easier time complying with compliance requirements than individuals.

To ensure such a complex structure appears to be a true control center, Antwort Law creates minimal but sufficient substance:

• address and office,
• management and corporate decisions from the UAE,
• bank account,
• local telephone number,
• regular board resolutions,
• corporate administration.

This allows banks and US/EU tax authorities to recognize the company as de facto managed from the UAE, which is critical for tax purposes.

What steps are included in our work to establish an investment holding company in the UAE:

1. Analysis of tax residency and investor objectives
2. Selecting the optimal jurisdiction within the UAE
3. Company registration
4. Opening a corporate bank account
5. Preparing corporate documents
6. Opening brokerage accounts in the US, EU, or Asia
7. Setting up the structure's management from the UAE
8. Full support and tax guidance

Why investors choose us:

• We create structures accepted by US and EU banks,
• reduce taxes to 0-5%,
• create legally correct substance,
• open bank and brokerage accounts,
• support transactions and corporate processes,
• work as a single management center.

Want to open an investment holding company in the UAE and increase your profitability? We will conduct a free initial analysis of your investment situation and prepare:

• a personalized structure diagram,
• a tax savings calculation,
• a complete holding company formation plan,
• a list of suitable banks and brokers.

Write to us, and we will create a structure that will preserve your capital, reduce taxes, and open access to global markets.

Lidia Ivanova

International lawyer
Antwort Law