What Is a Holding Company?

A holding company (often called an SPV — Special Purpose Vehicle) is a company that doesn't sell products or services. Instead, it owns assets: shares in other companies, real estate, intellectual property, or investments.

People set up holding companies in ADGM because:

• It's a safe, tax-efficient way to own assets across multiple countries
• ADGM uses English common law, which international investors trust
• There's no corporate tax on qualifying holding income
• It's easy to open bank accounts for cross-border deals

The Question Everyone Asks: Do I Need an Office?

Here's the good news: for a pure SPV or holding company, ADGM does NOT require a physical desk.

Instead, ADGM allows holding companies to use a CSP (Corporate Service Provider) registered address for about USD 250 per year (around AED 920). This is much cheaper than renting a desk.

This is different from a trading or consulting company, which must have a physical desk.

So Why Would a Holding Company Still Get a Desk?

Some holding company owners still choose to rent a desk, even though it's optional. Here's why:

• Bank account opening is easier. Some UAE banks ask for a physical presence before opening a corporate account for a holding company. Having a desk makes the KYC process smoother.
• You plan to add operating activity later. If you might convert your holding company into a trading company one day, having a desk already in place saves time.
• You want to hold meetings. If you bring investors or partners to Abu Dhabi, having a real meeting room looks more professional than a registered-address-only setup.
• You need more than the minimum. A CSP address gives you paperwork only — no place to sit, receive clients, or work. A desk gives you a real presence.

The Two Options Side by Side

What About Foundations and Investment Funds?

Two special ADGM structures have flexible rules:

• Foundations can use either a CSP address or a desk — you choose.
• Investment Funds (open/closed ended) can also choose either option.

If you're unsure which to pick, the safe default for a pure holding structure is the CSP address. If you expect to do any operating activity or want easier banking, go with the desk.

How It Works Step by Step (SPV)

1. Reserve the company name on NewReg (USD 200)
2. Choose your address: CSP address (USD 250/year) or a Venus desk
3. Apply for incorporation (USD 300 + USD 200 licence + USD 900 activity fee)
4. Pay data protection fee (USD 300)
5. Receive your commercial licence
6. Open your bank account (this is where a desk can help)

Common Questions

Can I switch from CSP address to a desk later? Yes. You can upgrade your address arrangement anytime by booking a desk and re-registering on AccessRP.

Does a holding company need an Establishment Card or visas? Not usually. If you don't sponsor any employees, you don't need an Establishment Card or visas. Many SPVs run with zero employees.

Can a holding company hold UAE real estate? Yes — this is one of the most common uses. ADGM SPVs are a popular way to hold property in Abu Dhabi and Dubai.

The Bottom Line

For a pure holding company or SPV, a desk is optional — a cheap CSP address is enough for ADGM. But if you want easier banking, future flexibility, or a real presence in Abu Dhabi, a desk at a licensed business center is a smart upgrade. The choice depends on what you plan to do with the company.