In May 2025, Dubai Multi Commodities Centre (DMCC) introduced the two new Dubai free zone license options: the Special Purpose Vehicle (SPV) license and the Holding Company license. These licenses let you manage assets and investments easily without needing a physical office. Whether you want to protect specific assets or control multiple companies, these licenses offer flexible and cost-effective solutions.
In this article, you’ll learn five key things about these licenses, including their purpose, benefits, setup process, costs, and how expert help like Decisive Zone can simplify your business setup in Dubai.
What Are the Two New Dubai Free Zone Licenses from DMCC?
DMCC introduced these licenses to meet the changing needs of global businesses. They give you more flexible options for managing your assets and structuring your company, making it easier to grow your operations from Dubai.
Special Purpose Vehicle (SPV) License Explained
Think of a Special Purpose Vehicle (SPV) as a separate legal company you create for a single, specific purpose. You can use it to hold valuable assets like real estate or intellectual property, or to manage investments for a particular project. The main idea is to isolate financial risk. By putting an asset in an SPV, you create a safety wall between it and your main company’s liabilities. This makes it an ideal structure for asset protection and specific investment ventures.
Holding Company License Explained
A Holding Company is a parent business you establish to own shares in and control other companies, known as subsidiaries. This type of company doesn’t directly buy or sell goods. Instead, its job is to centralize management, streamline how the group is run, and organize your investments efficiently. It earns its income from the profits of the companies it owns, such as through dividends and royalties. This setup is perfect for managing multiple businesses under one umbrella.
Source: The information presented here is based on the official announcement from Dubai Multi Commodities Centre (DMCC) and analyses from business setup consultancies and regional business news outlets like Decisive Zone, Gulf Business as reflected in the cited sources.
5 Important Things to Know About the New SPV & Holding Company Licenses
1. Understand Their Purpose: SPV for Asset Protection, Holding Company for Corporate Structuring
You should pick the right license based on your business goals. An SPV is designed for protecting specific assets, while a Holding Company is built for managing a larger business structure.
For instance, a real estate developer can use an SPV to own and manage one property development. This isolates the project’s financial risks from their other ventures. Likewise, a tech company might place its valuable intellectual property (IP) into an SPV. This structure protects the IP and simplifies the process of licensing it to others.
A Holding Company is ideal for corporate structuring in Dubai. An entrepreneur with several startups could put them all under one holding company for unified management and easier fundraising. A family business could also create a holding company to consolidate ownership of their different enterprises and plan for the future.
Here’s a simple way to see the difference:
| Feature | Special Purpose Vehicle (SPV) | Holding Company |
|---|---|---|
| Primary Goal | Isolate risk & hold specific assets | Own shares & control other companies |
| Typical Use | Project finance, real estate, IP | Group structures, investments, family offices |
| Income Source | From the single asset it holds | Dividends, royalties from subsidiaries |
2. Major Benefits: Cost-Effectiveness and Operational Flexibility
A big advantage of these new Dubai free zone licenses is that you don’t need to rent a physical office space. This immediately cuts down your setup and yearly operational costs, making your business setup in Dubai much more affordable.
Financial Advantages
Setting up these licenses is very cost-effective, especially when you compare it to traditional mainland or other free zone options. You also get amazing tax benefits. Your company can qualify for a 0% corporate tax rate on its “qualifying income,” which is a huge financial plus for businesses operating from a Dubai free zone.
Structural & Legal Benefits
You enjoy 100% foreign ownership, which means you have complete control over your business. These structures are also great for asset protection, as they legally separate your valuable assets from your main company’s financial risks. This gives you better flexibility for managing cross-border transactions and structuring your investments globally.
3. The Setup Process: Key Requirements and Application Steps
Getting your new Dubai free zone license involves a few clear steps. These licenses are available for different types of applicants, including big international companies, family investment offices, and individual investors.
Required Documentation (Checklist)
You’ll need to prepare some important papers. This typically includes copies of passports for all owners and directors, and proof of where they live. You’ll also need a detailed business plan that explains what your SPV or Holding Company will do. Don’t forget the application form and trade name registration details!
Step-by-Step Application Process
First, you’ll have an initial chat to pick your company name. Then, you submit all your documents and the application. The authorities will conduct security and background checks. If everything looks good, you get initial approval.
After that, you sign legal documents like the Memorandum of Association, and finally, your license is issued. This process ensures your business setup in Dubai is smooth and compliant.
4. Cost Breakdown and Corporate Tax Considerations
Understanding the costs and tax benefits is a key part of your planning for a company setup in Dubai.
Estimated Costs
The exact fees for your Dubai free zone company setup can vary. Similar holding company licenses in other free zones can start from around AED 12,500, but you should always confirm the latest fees directly with DMCC. A complete setup package for an SPV or Holding Company in DMCC often ranges between AED 20,000 and AED 30,000. Keep in mind, you will also have other one-time costs for registration, visa processing if needed, and any corporate services you might use.
UAE Corporate Tax Implications
The tax rules offer a great advantage. While the UAE has a standard 9% corporate tax, businesses in a qualifying free zone can get a 0% rate on their “Qualifying Income. The money your business earns from holding shares and other investments typically falls into this category.
This makes these new Dubai free zone business licenses very tax-friendly. To get the 0% tax rate, your business must meet all regulatory rules and maintain a genuine presence in the UAE.
5. Why Expert Guidance is Important (and How Decisive Zone Can Help)
Getting your Dubai company formation right can be complex. You have to understand free zone regulations, choose the correct structure between an SPV and a Holding Company, and handle tax compliance. Managing all these details on your own can be challenging.
This is why working with a business setup expert makes the process much smoother. A leading consultancy like Decisive Zone specializes in helping entrepreneurs and companies establish their presence in Dubai. They are dedicated to helping you find the best solutions for your company setup.
Decisive Zone helps you by:
- Giving expert advice so you can choose the most suitable license type for your business goals.
- Managing the entire application process, from handling documents to issuing the final license.
- Assisting with what comes next, like opening a corporate bank account and staying compliant.
- Using their experience to help your new business succeed in the Dubai market.
Frequently Asked Questions (FAQs)
1. What are the two new Dubai free zone license categories launched by DMCC?
DMCC introduced the Special Purpose Vehicle (SPV) license for asset protection and the Holding Company license for managing shares and subsidiaries in other companies.
2. Do I need a physical office for a DMCC SPV license?
No, a significant benefit of the new SPV and Holding Company licenses is that they do not require a physical office space, reducing overhead costs.
3. What is the main difference between a DMCC SPV and a Holding Company?
An SPV is used to hold and protect specific assets, while a Holding Company is designed to own shares and control a group of other businesses.
4. Can a Holding Company in a Dubai free zone trade goods?
No, a holding company is not permitted to engage in direct operational trading. Its purpose is to hold assets and investments and earn passive income.
5. What is the main tax benefit of the new licenses?
These licenses allow businesses to potentially qualify for a 0% corporate tax rate on income from investments and dividends, offering significant tax efficiency in the UAE.
Final Thoughts
The introduction of the SPV and Holding Company licenses by DMCC is a true game-changer for Dubai’s business landscape. These structures offer remarkable flexibility, significant cost savings, and powerful advantages for both asset protection and corporate management.
If you are planning a company setup in Dubai, exploring these two new Dubai free zone license options is a very smart move. To discover how these licenses can benefit your specific business goals, connect with a professional consultant today. They can offer personalized advice and help you choose the best path forward for your company’s success in the UAE.
