The UAE commercial companies law has been amended to allow 100% foreign ownership of companies incorporated in the UAE under the CCL. As per the Ministry of Economic, the commercial Companies Law aims to boost the emirate’s competitive edge and is part of the UAE government’s effort to facilitate doing business.
This reform is limited to commercial and industrial business activities. However, not all professional business activities will be part of the outright foreign ownership law and will continue to require a local service agent to become involved.
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The requirement that a minimum of 51% of the shares in companies is held by one or more UAE citizens, being natural or legal persons, has been omitted from the article of the CCL. Foreign ownership restrictions are a major concern for foreign investors, including private equity and venture capital funds, and create additional complexity and barriers to investment in commercial companies.
Foreign investors can now own and control companies without naming employing or similar structures, thus avoiding cumbersome arrangements, additional costs, and legal uncertainty. In addition, single-shareholder entities, formerly wholly owned by UAE nationals, are now eligible to be 100% ownership in UAE by foreign investors.
The Department of Economic Development of each emirate will designate business activities open to 100% foreign ownership. The DED has released a list of licensed activities that can be conducted by a foreign-owned company that includes over 1,100 activities and covers a range of sectors. While ‘Business’ does not appear on the current list, the DED may expand the list of licensed activities in the future to include this activity.
Business setup in Dubai mainland with 100% Foreign Ownership
The new entrepreneurs and investors prefer to start their company in the Dubai mainland to make the most attractive opportunities. Follow the steps below to set up your company in the Dubai local market:
1. Finalize your Business Activities
You have a list of all the activities that want to do in Dubai. the DED (Department of Economic Development) sustains a list of permitted business activities, and you require to select based on your needs.
The activities of your business decide what kind of license you require to obtain in the United Arab Emirates. If certain business activities are not specified in the list, you do not need to worry. All you have to do is apply for outside approval, and you would also receive legal permission for those activities.
2. Decide the Company Structure
Many expatriates like to open a Limited Liability Company in Dubai so they can start their business operations. Now, with 100% foreign ownership in the UAE, this is easy than ever to build such a company in the mainland sector. This is because you not require to appoint any local sponsor and share the ownership of your company.
A local service agent will help you establish your venture in the UAE by offering assistance, with translation and paperwork, etc., without any legal shares in your company.
3. Reserve a Trading Name
All the companies should have a different trading name regardless of their business ownership framework in the UAE. The trade name you decide must be an indication of your respective industry and should not be a gimmick of any other brand name. make sure you follow all naming convention protocols to avoid any kind of legal complications.
4. Procure an Office Space
You must have an office space that is suitable for your brand as it affects how your customers view your company. So, explore the many options that available in Dubai and choose from your favorites. It is preferable to rent office space in UAE because it is cost-effective, easy to buy, and there is no hurdle if you plan to relocate.
5. Obtain your Business License
Once you have completed all the steps, then this is the time to apply for your business license. All legal unities should have a valid business license in the UAE to carry on their business activities in the nations without any hassle. Also, make sure you renew your business license one month before the date of expiry.
You have to appoint a trusted LSA who would assist you with the documentation related to the business license process. He/she will not have any legal involvement in your company, so you can take pleasure in 100% ownership in UAE. You can consult with the best business setup consultant at Start Any business to know more about how to get 100% ownership for expatriates in Dubai, UAE.
Why Should Choose Us
Start Any Business (SAB), is one of the reputed business setup consultants in Dubai that provide the best business setup consultancy services in Dubai, UAE without any hidden cost. Our expert team offers you expert guidance while starting a business in Dubai. We help you to understand the 100% ownership in UAE. Our specialists provide a significant amount of value for your business. We help to develop strategies for development and manage projects of your company.
Also read: How Indians can Start Business in Dubai