Which format fits
A startup needs a clear cap table. A holding company in a financial centre or free zone and a separate operating company are often considered. The choice depends on whether you will raise investment and which law investors are used to working under.
What to pay attention to
- Investors and banks read the ownership structure, so it is better to document shares and founders’ roles in advance.
- The shareholders’ agreement and the founders’ exit procedure should be thought through before sales start.
- Subscriptions from different countries mean different payment providers, which affects the choice of bank and account.
Structure and asset protection
The holding company owns the product and a stake in the operating company. Investors come in at the holding level, while operating risks stay below. Agree the structure with a lawyer under the law that investors will choose.
The overall logic of the structure is described on the page “Asset protection and ownership structures”.
Bank account
For subscription revenue, a multi-currency account and an account with a payment provider are useful. The bank usually asks for a business plan and a description of the monetisation model.
More: bank account opening.
Common mistakes
- Founders’ shares and rights to the code are formalised late
- One account and one payment provider for the whole business
Where to start
Tell us about your business. We will review your situation and propose a company format, a jurisdiction and an ownership structure. You can compare the options in the article “Free zone or mainland”, and costs are covered in the article “How much does it cost to open a company in Dubai”.
Regulations and licensing requirements change. Current conditions must be verified before launch. The decision to open an account is made by the bank. Tax consequences depend on your residency.