Advantages of SPV Setups
Asset Protection
SPVs offer a secure way to hold assets or liabilities separate from the parent company, minimizing exposure to financial risks.
Risk Isolation
​By isolating liabilities related to specific projects or investments, SPVs protect the parent company from potential losses
Legal Flexibility
SPVs can be tailored for specific purposes, such as real estate investment, private equity, or intellectual property management.
Tax Efficiency
​Free zone SPVs often benefit from tax exemptions or reduced tax rates, making them cost-effective for investment holding.
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 ADGM and 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.
SPV & Holding Company Setup Process
Preparation and Application Submission
Decide on the best jurisdiction for the SPV or holding company (e.g., ADGM, DIFC, RAK ICC, DMCC). Gather the required documents and submit the application and supporting documents to the chosen jurisdiction’s authority.
Takes 1 to 2 weeks
1
Review and Approval Process
The regulatory authority reviews documents and may conduct background checks on shareholders and directors. In some cases, authorities may request additional documents.​
Takes 2 to 4 weeks
​
2
Company Registration and License Issuance
Following approval, the entity receives its trade license or registration certificate. Complete any necessary registrations with local or federal authorities, depending on the requirements.
Takes 1 to 2 weeks
​
3
Bank Account Opening and Final Setup
Submit an application to open a corporate bank account. For physical offices or shared finalize lease contracts. Once the bank account is set up the SPV or holding company is ready for operation.​
Takes 2 to 4 weeks
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4
How We Can Help You
Gravity Power Management Consultancy offers expert, personalized services for foreign investors looking to establish a Mainland company in the UAE. With in-depth knowledge of local regulations and a commitment to client satisfaction, we simplify the process for startups, SMEs, and multinational corporations. Contact us today to discuss your Mainland company setup and start your business journey in Dubai.
