The Dubai Multi Commodities Centre (DMCC), a leading global business hub, has introduced two innovative license categories: Special Purpose Vehicle (SPV) and Holding Company licenses. These new offerings are designed to provide businesses with enhanced flexibility, operational efficiency, and significant cost savings when managing assets and structuring investments in Dubai.
Key Features of the New Licenses
Special Purpose Vehicle (SPV) Licence: The SPV licence is tailored for entities seeking a streamlined, cost-effective structure for specific, non-operational objectives. Key benefits include:
- Passive Holding Structure: Incorporated as a private company limited by shares or guarantee, the SPV is ideal for asset holding, risk isolation, and investment structuring.
- Reduced Administrative Burden: SPVs are exempt from appointing a company secretary, holding annual general meetings, and maintaining a physical office. Only a registered office address often provided by a DMCC registered corporate services provider is required.
- Cost Efficiency: These exemptions translate into lower setup and ongoing operational costs, making SPVs an attractive choice for businesses seeking efficiency.
- Global Alignment: The SPV framework mirrors international best practices, supporting remote and flexible business management.
Holding Company License – The Holding Company licence offers organisations greater control over investments, asset management, and regional oversight. Key features include:
- Strategic Oversight: While not intended for operational business activities, holding companies can act as head offices and employ staff to manage group operations.
- Flexible Structuring: This licence is ideal for consolidating ownership and efficiently managing multiple subsidiaries or investments.
Who Should Consider These Licences?
These new DMCC licenses are particularly suited for:
- Multinational Corporations: Seeking to consolidate regional operations and enhance governance.
- Asset Holding Entities: Looking for efficient structures to manage and protect assets.
- Businesses Leveraging Dubai’s Regulatory Advantages: Entities aiming to benefit from the emirate’s robust, business-friendly regulatory environment.
How Al Tamimi can help?
For tailored legal guidance and comprehensive support with establishing an SPV or Holding Company in DMCC, feel free to reach out to the key contacts.
Key Contacts
Sherif Rahman, Partner, s.rahman@tamimi.com
Khadija Hussain, Senior Associate, k.hussain@tamimi.com