Intellectual Property Holding Company
Setting up an Intellectual Property Holding Company in the UAE helps protect and manage IP assets efficiently. These companies are specially structured to hold, license, and monetize patents, trademarks, and copyrights. From licensing and approvals to royalty management, expert guidance ensures compliance and maximizes the value of your IP.
What is an Intellectual Property Holding Company?
An Intellectual Property (IP) Holding Company in the UAE is a specialized legal entity designed to own, manage, and protect intellectual property assets. It provides a dedicated structure for founders and investors to hold patents, trademarks, copyrights, and trade secrets while limiting personal liability. These companies are governed by the UAE's Commercial Companies Law, DED regulations, and the Ministry of Economy guidelines. Share capital can be divided into shares, allowing for flexible ownership and investment options.
Unlike traditional operating companies, IP Holding Companies do not conduct day-to-day business activities. Their main purpose is to safeguard IP assets and ensure that all legal rights are properly maintained and enforceable. By focusing solely on intellectual property management, these companies reduce risks and simplify legal compliance, making them ideal for inventors, creators, and investors.
Revenue for an IP Holding Company is generated primarily through licensing fees, royalties, and agreements related to patents, copyrights, or trademarks. This structure allows investors to monetize their intellectual property efficiently without facing the operational challenges or financial risks associated with running a full-scale commercial business. It also ensures long-term protection and value preservation for IP assets in the UAE and internationally.
Advantages of Setting up an Intellectual Property Holding Company (IPHC) in Dubai
Tax Efficiency
Zero personal income tax on royalties; 9% corporate tax only above AED 375,000 profit.
Enhanced Asset Protection
IP assets held separately, protecting patents, trademarks, and copyrights from business risks.
Royalty Revenue Generation
Generate passive income via trademark licensing and patent royalty agreements.
Ownership Control
Founders retain full IP rights; transfers allowed only to approved investors.
Flexible Capital Deployment
Structure enables strategic IP acquisition and capital pooling for portfolio growth.
Institutional Credibility
IP holding recognized internationally, strengthening negotiating position for rights deals.
Is Intellectual Property Holding Company (IPHC) Formation in Dubai Costly?
Forming an Intellectual Property Holding Company (IPHC) in Dubai does involve costs, but it can be managed efficiently with the right guidance. An IPHC allows you to hold and manage IP assets, earn royalty income, and protect your intellectual property without running a regular business. By handling DED registration, IP valuation, and licensing agreements carefully, expenses can be optimized.
Riz & Mona Consultancy guides you through every step. We review your IP portfolio, prepare all required documents, coordinate with investors, draft the MOA/AOA, manage DED registration, and ensure full regulatory compliance. Our support makes the entire IPHC formation process smooth and cost-effective.
Dubai IPHC Formation Cost Calculator
Use our calculator to get a clear breakdown of costs for setting up an Intellectual Property Holding Company in Dubai.
Key Features of IP Holding Companies
01.IP Asset Management
An IPHC centralizes patents, trademarks, copyrights, and trade secrets, allowing strategic management and full control of IP rights.
02.Shareholder Base
Requires at least 2 shareholders (or 1 legal entity) and up to 200, ensuring controlled investor participation in IP ownership.
03.Business Structure
Managed by a professional board of directors with clear governance rules and decision-making for IP acquisitions and licensing.
04.Royalty Agreement Control
All IP licensing agreements must be board-approved, safeguarding investment quality and optimizing royalty income.
05.Regulatory Oversight
DED and the Ministry of Economy oversee compliance, providing a clear regulatory framework for IP holding companies.
06.Asset Continuity
The company continues regardless of shareholder changes, ensuring the IP portfolio remains stable across ownership transitions.
Key Requirements for IPHC Establishment
- Establishing an intellectual property holding company in Dubai requires defined minimum capital based on IP asset valuation.
- Minimum two shareholders (or one legal entity) where capital reflects IP ownership stakes in patents and trademarks.
- Maximum 200 shareholders allowed with no public share offerings permitted.
- Foreign Direct Investment Law allows up to 100% foreign ownership for IP investment activities on the Positive List.
- Board of directors with IP asset management expertise and defined governance authority.
- Ministry of Economy approval and Department of Economic Development registration mandatory.
- Memorandum and Articles of Association prepared in Arabic and notarized with IP asset provisions.
- Bank certificate confirming minimum capital deposit in a corporate account.
- Ultimate Beneficial Owners (25%+ ownership) must be fully disclosed and verified.
- Office lease agreement in Dubai with physical business premises required.
- IP asset portfolio documentation including patent valuations, trademark registrations, and copyright agreements.
- Clean compliance record with no financial crimes, fraud, or sanctions listing.
- Economic substance documentation showing active IP management and royalty income generation.
Comprehensive IPHC Formation Support
Forming an Intellectual Property Holding Company in Dubai requires expertise in UAE Commercial Companies Law, IP asset structuring, and DED regulations. As experienced IPHC formation consultants, we bring in-depth knowledge of royalty income management, trademark licensing, and compliance procedures for intellectual property special purpose entities.
We ensure you fulfill all obligations under UAE company law, IP protection regulations, and DED requirements. Partner with us for absolute clarity and ease in establishing your IP holding structure.
IPHC Formation Services in Dubai
- Initial approval and IP asset portfolio review
- MOA and AOA drafting and notarization with IP asset provisions
- Minimum capital arrangement and IP valuation
- Shareholder coordination (minimum 2 required)
- Foreign ownership structuring and FDI compliance
- Ministry of Economy approval processing
- Trademark and patent licensing agreement support
- Board of directors formation with IP expertise
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