Who is Eligible for 100% Ownership of Business in Dubai?

Who is Eligible for 100% Ownership of Business in Dubai?

Who is Eligible for 100% Ownership of Business in Dubai?

Are You Planning to Setup Business in Dubai?

The announcement of 100% ownership is a complete turnaround in the history of the UAE. You, me and anyone who aspires to own a business setup in UAE can be the proud owner of the company following the amendments in the prior laws and regulations. Expats and foreign entrepreneurs are permitted to fully own onshore companies by the UAE Ministry of Economy. This has become possible from 01 June 2021 and investors have already started pouring in.

The new law no. (26) of 2020 has amended law no. (2) of 2015 commercial companies and allowed 100% ownership to the foreign investors attracting a huge chunk of FDI in the UAE. It’s a momentous measure that includes more than 1,000 commercial activities.

What are Onshore Companies in the UAE?

Mainland company formation in Dubai can be established within the specific territory to operate in the local market as well as beyond the periphery. Declaration of 100% ownership is a rewarding feature for foreign investors. Onshore business can be founded in any one of the mainlands with a casket of tax benefits and other amenities.

Is the Law Applicable All Over the UAE?

Yes, it’s applicable in all of the seven emirates of the UAE. You can select the location as per your requirement and the business activity that you want to start. Earlier, some of the foreign investors refrained and were hesitant to invest in the UAE because of ownership hassles. Although the government of each emirate will be the final authority to set the limitation of foreign ownership on the nature of the business.
In Dubai alone, the amended law will enable the investors to own 100% ownership for 1061 out of 2300 economic activities enlisted by the Department of Economic Development (DED). 100% ownership will continue in professional services but you will be required to have a local service agent, who will have no stakes in the ownership.
The law does not apply in central sectors like oil, gas, utilities and transport.
The government gifted a pool of relaxations to the foreign investors wholeheartedly as a strategic plan for the success of World Expo 2020.
An expatriate can set up the business in Dubai with the validity of 100% ownership for a trading company in Dubai mainland itself.

Benefits of an Amendment for The Business Owners and the Government

A&A Associate is a business setup consultants in Dubai. It can help you with a Feasibility Study in case you want to explore the market for your product or service. Conventionally, business owners were required to relocate to Dubai for taking advantage of business activities of the dynamic market environment. Now, after the introduction of the Dubai virtual company license, it’s easier to operate from anywhere in the world. One can successfully run a business without residing in any of the emirates. All documents and signatures are electronically accepted within the jurisdiction of the UAE. It seems to be a great opportunity for all.

* The subject matter presented here is for general guidance only. Please consult a piece of expert advice for the best solutions.

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