100% Foreign Ownership of Companies in the UAE
The adoption of revisions to the Commercial Companies Law (CCL) from 1 June 2021, in what could be described as a new dawn for the country’s business community, now permits 100% Foreign ownership Dubai of their businesses. This blog will go through the latest developments in-depth and represent entrepreneurs and the UAE economy.
New Developments
The new rules place a greater emphasis on regulating provisions for forming business organizations with limited liability structures. A Limited Liability Company (LLC) can be owned by a single person or a group of people.
Previously, foreign company owners were only allowed to own up to 49% of their firms. The remaining 51% must be owned by a UAE national, commonly known as an Emirati sponsor or partner. Only a few activities in the professional services sector and a few free zones in the UAE permitted 100% ownership Dubai business.
The revisions now exclude expat investors from the UAE nationals’ minimum 30% ownership requirement. As a result, natural and legal people can form businesses on the UAE mainland company setup without requiring a local partner.
The amended regulations will apply in Dubai to 1,061 of the 2,300 total economic activity included in the Department of Economic Development’s list (DED). As a result, roughly half of all commercial operations, including trade and manufacturing, are eligible for 100% ownership.
However, 100% ownership of a firm continues to favor entrepreneurs in professional services activities. They do, however, necessitate the use of a local service agent and strictly adhere to the sole establishment legal form rather than the LLC.
Nevertheless, launching the bulk of trading activity in Abu Dhabi still necessitates investors partnering with an Emirati sponsor. As a result, they must adhere to the 51-49 rule. The adoption of 100% Expat Ownership Dubai differs from Emirate to Emirate. While the revised laws have already been implemented in Dubai and Abu Dhabi, other governments are likely to follow suit.
Free zones offering 100% ownership Dubai Business
Following free zones are offering you the chance of Mainland Company Setup and 100% Expat Ownership Dubai today:
- JAFZA- Jebel Ali Free Zone Authority
- DWC- Dubai South Free Zone
- Fujairah Creative City
- SPC- Sharjah Publishing City
- AMC- Ajman Media City Free Zone
- DMCC- Dubai Multi Commodities Centre
Why were rules changed to allow for 100% ownership of a company?
- To create a favorable legal environment for the creation of businesses.
- Facilitating 100% company ownership in the UAE will improve the economy’s preparedness.
- Boosting investment and commercial possibilities will help prepare for the future by making it easier to do business.
- Increasing the corporate environment’s competitiveness in response to rapid economic changes and global economic trends.
- It will respond to the demands of the UAE business community as they change.
- Increase the country’s appeal to foreign investors, enterprises, and even startups.
How can BlueKryon help you?
BlueKryon has been assisting local and international businesses. Investors take their initial steps as pioneers in offering skilled company formation services. From helping entrepreneurs in determining the most appropriate jurisdiction, trade license, and corporate structure for their business to obtaining all required documents and approvals from various government agencies for the issuance of visas and permits, BlueKryon takes care of all the steps and formalities so that businesses do not have to worry about legal procedures.
Furthermore, because the law is new, the integration of multiple government offices will take time. To prevent misunderstandings and learn more about how BlueKryon can assist you in gaining 100% ownership of a business in the UAE, schedule a consultation with the BlueKryon team of specialists now!
