Subsidiary
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.
