With effect from June 1, the UAE will allow 100% foreign ownership in Dubai Mainland LLC companies. This significant change stems from a Presidential Decree issued in November 2020, which announced major modifications to the foreign ownership rules in the UAE’s Commercial Companies Law of 2015.
How Did This Come About?
Until this landmark decision, companies in the UAE were required to have at least 51% of their shares owned by Emirati nationals or an Emirati agent. This restriction often discouraged foreign investors, who were left navigating a complex landscape of local partnerships.
What Is 100% Foreign Ownership in Dubai?
The new law enables foreign investors to establish and own 100% of their businesses in the UAE, specifically in Dubai Mainland. This amendment not only simplifies the company formation process but also opens the door for entrepreneurs worldwide to enter the UAE market without the need for a local partner.
Implications for Entrepreneurs
This change has far-reaching implications for both existing businesses and new startups in Dubai. Entrepreneurs can now:
- Enjoy complete ownership of their LLC companies.
- Register their businesses without needing an Emirati sponsor.
- Access lucrative government contracts and local market opportunities.
Key Changes in the Amendment
The new amendment introduces several critical changes:
- Elimination of the UAE National Shareholding Requirement: No longer must UAE companies have a majority of Emirati shareholders.
- Full Ownership for LLC Companies: Foreign nationals can now fully own their companies on the mainland.
- Increased IPO Flexibility: Joint stock companies can now sell up to 70% of their shares through an IPO, up from the previous limit of 30%.
- Board Flexibility: Meetings can now be presided over by expatriates, and expatriates can serve on boards of directors.
The Future of Business in the UAE
The implementation of 100% foreign ownership in Dubai is a strategic move aimed at fostering a more attractive business environment, improving the ease of doing business, and preparing the UAE for future economic challenges.
What Entrepreneurs in the UAE Can Expect
The anticipated impact of this amendment includes:
- Increased investment and commercial opportunities in the UAE.
- A more appealing environment for foreign startups and established businesses.
- Enhanced legislative support for entrepreneurs.
Conclusion: Seize the Opportunity
The 100% foreign ownership of onshore companies marks a pivotal moment for business growth in the UAE, particularly for investors who previously faced ownership restrictions. This change enhances Dubai’s status as a premier business hub.
If you’re ready to take advantage of this new law and start your business in Dubai, contact Bizinvestfirm today. Our expert team specializes in company formation and can guide you through every step of the process.
Final Thoughts
With the introduction of 100% foreign ownership in Dubai Mainland, entrepreneurs now have an unparalleled opportunity to establish and grow their businesses without traditional limitations. Don’t miss out on this transformative moment—consult with a trusted business setup service provider like Bizinvestfirm to turn your business vision into reality.
Frequently Asked Questions About 100% Foreign Ownership in Dubai
How Can a Foreign National Get 100% Ownership in an Existing LLC Company?
A foreign national can hire a business setup consultant to facilitate the removal of the UAE national from the LLC. This includes preparing the amendment of the license and Memorandum of Association (MOA).
Can a Foreigner Register a Company in Dubai?
Yes, foreigners can establish businesses in Dubai and now have complete control over their ventures.
What Businesses Are Included in 100% Ownership in Dubai Mainland?
Any commercial or industrial activity listed under the UAE’s Commercial Companies Law qualifies for 100% ownership.
Do I Need a Local Sponsor to Start a Business in Dubai Mainland?
No, the new law eliminates the need for a local sponsor for mainland companies, although a local agent may be required for specific services.
What Is the Process to Amend an Existing LLC Company into 100% Foreign Ownership?
All shareholders must sign a resolution to amend the license and seek approval from the Department of Economic Development.
