SPV Structuring DIFC & ADGM
An SPV is designed around a defined asset or transaction. Its suitability depends on ownership, legal documentation, jurisdiction and ongoing obligations.
Frequently asked questions
What is the difference between an SPV and a holding company?
A holding company generally owns investments or subsidiaries as part of a wider group structure. An SPV is usually created for a defined asset, project or transaction. The functions can overlap; legal form and permitted activities, rather than the label, determine what the entity can do.
How should I compare DIFC and ADGM for an SPV?
Compare eligible purposes and applicants, asset location, ownership, registry requirements, registered office or service-provider arrangements, costs and ongoing filings. ADGM non-exempt SPVs require an ADGM-licensed company service provider. Confirm the current framework for the specific structure before applying.
How much does SPV formation cost in the UAE?
There is no single all-inclusive price. Budget separately for incorporation and renewal, any applicable regulatory applications, premises, qualified personnel, insurance and ongoing compliance. Request an itemised quotation for the exact activities and jurisdiction; authority fees and eligibility must be confirmed before applying.
Does this UAE company structure automatically qualify for tax exemptions?
No. Under the standard UAE Corporate Tax regime, the rate is 9% on taxable income above AED 375,000. Free-zone treatment depends on qualifying conditions and the nature of income, not simply the company location or sector. Separate rules can apply to large multinational groups. Obtain qualified tax advice for the proposed structure.