Dubai SPV Services

An Introduction to Special Purpose Vehicles in the UAE

A Special Purpose Vehicle (SPV) is a legal entity established to achieve a specific objective set by its parent company. It is one of the most popular company types in the UAE. An SPV company can be used to conduct transactions, control risks, and realize the company's goals. If you are looking to start your SPV limited company registration, here's what you need to know.

An SPV is a type of company founded to fulfill a goal defined by its parent company. With Dubai SPV Services, it is used for the purpose of asset protection and preventing risks associated with them. It allows for the segregation of any financial risks related to the company's assets.

Advantages of Setting Up a Special Purpose Vehicle (SPV) in the UAE

Registering an SPV in the UAE can provide its owner with a number of advantages.

Enhanced Risk Management

By minimizing potential risks and shielding the parent company from financial exposure, businesses can isolate and ring-fence specific assets or operations.

Flexibility and Efficiency

SPVs offer flexibility in structuring complex transactions, allowing businesses to optimize their corporate and financial arrangements. This ensures the efficient allocation of resources and streamlined operations.

Legal Framework

The UAE offers a robust legal and regulatory framework for SPV formation. It provides a favorable business environment, supportive legislation, and investor-friendly policies that promote growth and stability.

Confidentiality and Privacy

The UAE provides confidentiality and privacy provisions for SPV owners and shareholders, protecting sensitive business information and maintaining anonymity where required. Establishing an SPV can enhance investor confidence and attract potential partners or investors.

Asset Protection and Structuring

SPVs allow for effective asset protection and structuring, facilitating the efficient management of assets and liabilities. This can be particularly advantageous for businesses operating in real estate, investment holdings, securitization, and project finance.

Tax Optimization

SPVs in the UAE can benefit from an advantageous tax regime, including tax exemptions or reduced tax rates on specific activities. This allows businesses to optimize their tax liabilities and enhance profitability.

What are the Steps to Set Up an SPV in the UAE?

Setting up a Special Purpose Vehicle (SPV) in the UAE involves several key steps. While the specific process may vary depending on the jurisdiction and the type of SPV, here are the general steps to consider:

Choose your preferred jurisdiction
In the UAE, you may have the option to set up your SPV in one of the free zones in DIFC, ADGM, or RAK ICC.

Name reservation
Your company name should be unique and describe your business. It needs to be approved by the relevant authorities. You must ensure the name is not already taken.

Obtain necessary permits and licenses
Depending on the jurisdiction where you establish your business, apply for approvals and licenses from the relevant authorities.

Lease office space
Secure office space within the chosen jurisdiction that will serve as the registered address for your SPV. While free zones may provide ready-to-use office spaces, mainland jurisdictions may require a lease agreement.

Submission and registration
Prepare all necessary documents, including the Memorandum of Association (MOA), Articles of Association (AOA), shareholder and director details, and any relevant forms. Submit the application to the relevant authority or free zone for registration.

Open bank accounts
Once your SPV is registered and you have received your license, the next step is to set up a bank account.

Where Can You Set Up an SPV in Dubai, UAE?

An SPV can be established in one of the following locations in the UAE:

Dubai International Financial Centre (DIFC)

Setting up an SPV in the Dubai International Financial Centre (DIFC) offers numerous benefits, especially if your business activities are focused on financial services. The DIFC is a leading financial hub located in Dubai, United Arab Emirates (UAE). It is a financial free zone established in 2004 to create a conducive environment for conducting financial and related business activities.

Abu Dhabi Global Market (ADGM)

The Abu Dhabi Global Market (ADGM) is another prominent financial center in the United Arab Emirates (UAE) where you can establish an SPV for your business. ADGM offers modern and advanced infrastructure, including office spaces, meeting facilities, and advanced communication networks.

RAK International Corporate Centre (RAKICC)

RAKICC is a corporate registry located in Ras Al Khaimah, one of the emirates in the United Arab Emirates (UAE). It offers a favorable business environment for various types of entities, including SPVs. RAKICC provides different types of legal entities suitable for SPVs, including International Business Companies (IBCs) and Special Purpose Companies (SPCs).

An SPV can be established in the UAE according to your needs. The cost also depends on various factors, making it difficult to provide a fixed value.

Dubai SPV Services