« Back to Glossary IndexSubsidiary
A subsidiary is a company that is owned or controlled by another company (parent company), with the parent holding a majority of shares. In the UAE, subsidiaries can be established in the mainland, free zones, or offshore jurisdictions, depending on the business structure. Subsidiaries operating in mainland UAE must comply with local ownership regulations unless eligible for 100% foreign ownership under the FDI Law. Free zone subsidiaries benefit from tax exemptions and regulatory advantages, but may need to establish a branch or distributor to conduct mainland operations legally.
Disclaimer
The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advise to ensure the best possible solution for your individual circumstances.
About ATB Legal
ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.
Please feel free to reach out to us at office@atblegal.com for a non-obligatory initial consultation.
