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Special Purpose Vehicle (SPVs)
Price Starting from
USD 5,700*
- Risk Mitigation Measures
- Direct Ownership
- Loan Securitization
- Property Transactions
- Strong Legal Framework
Business Setup in ADGM Free Zone
About Special Purpose Vechile
A Special Purpose Vehicle (SPV) is a legal entity created for a specific purpose. It is often used to pool financial assets that secure and benefit the shareholders.
SPVs can be used for several reasons, such as financing large projects or funding research and development. They offer many perks, including flexibility in major shareholding, a robust regulatory framework, and several tax advantages.
By creating an SPV, you can effectively create a "buffer" between your company and any risks associated with the underlying assets. Shareholders are free to enter new markets and have a clear exit strategy that shields their resources. This can help their companies achieve their corporate objectives and protect them significantly from any changes in the local laws.
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Advantages of SPV's
The UAE’s regulatory framework has evolved to accommodate SPVs, making it an attractive destination for investors and companies alike. Some of its benefits include:
Direct Ownership
Risk Mitigation Measures
Tax Advantages
Asset Protection
Flexible Holdings
Bankruptcy Remote Entity
Capital Management
Strong Legal Framework
Special Purpose Vehicle Company Incorporation
Why Set Up an SPV in the UAE?
The UAE is a prime location for setting up an SPV due to its strategic geographic location, connecting the East and West, and its status as a global financial hub.
Companies often set up SPVs to raise capital, manage risk, or hold assets while enjoying the UAE's regulatory and tax advantages.
The flexibility in structuring SPVs allows businesses to tailor the vehicle to their specific needs, whether for project financing, real estate investment, or managing intellectual property. Establishing an SPV in the UAE can be beneficial for various reasons.
SPVs can protect specific assets from the financial risks associated with the parent company.
They can be used to gather funds for specific projects, attracting investors interested in a particular venture without exposing them to the broader risks of the parent company.
How to Set Up an SPV Company in ADGM
Steps for Starting an SPV Company in the UAE
With strong legal protections and confidentiality, setting up an SPV in the UAE is both straightforward and highly advantageous for local and international investors.
Conduct Due Diligence
Before establishing an SPV, it is crucial to conduct thorough due diligence to ensure that this structure aligns with your business objectives. Assess your specific needs and the potential benefits an SPV could provide.
Choose the Right Jurisdiction
The first step in setting up an SPV is selecting the appropriate jurisdiction within the UAE. Free zones like the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) are popular due to their specialized regulations and ease of business setup.
Define the SPV's Purpose
Clearly outline the specific purpose of the SPV. Whether for asset management, project financing, or risk mitigation, having a defined purpose will guide the setup process and ensure compliance with UAE regulations.
Consult a Professional Service Provider
Establishing a Special Purpose Vehicle (SPV) in the UAE requires expert guidance to navigate regulations and ensure compliance, especially if you want to fund a major project or gain tax benefits. At EZONE, we provide a wide range of services across various jurisdictions, providing tailored solutions that streamline your financial strategy and expand your global reach.