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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.
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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?
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Benefits of an Amendment for The Business Owners and the Government
- Until May 31st, 2021 a foreign national had a minor stake of 49% only in the business setup which has changed to 100% from June 01, 2021.
- 100% ownership is highly attractive for business owners. Thereby, resulting in the growth of the regional economy and the investors.
- Globally, the UAE has emerged very strong and superseded as the prime location for investment.
- This announcement created a ray of hope for the investors when the whole world was perplexed in a whirlpool caused by pandemic Covid-19.
- There is no additional capital requirement for changes in any of the existing activities mentioned in the list by DED. This again sounds lucrative for those expatriates who wish to establish SMEs (small and medium enterprises).
- 100% foreign ownership includes some new segments of commercial activities like gold, pearls, jewellery, luxury watches, cars, food and general trading etc.
- Resident Visa is not compulsory and no local sponsor is required at the time of formation of the company. Once the company is formed you can apply for a resident visa which will be applicable for three years. Later you can also become the sponsor of your dependents.
- An individual, as well as multiple business owners/shareholders, can own a limited liability company in the mainland.
- Existing business companies can also change the structure of ownership according to the new laws.
- Emiratis will also be the beneficiary and need not worry. Sharjah Media Office confirmed the minimum wage for nationals to be raised from AED 17,000 to AED 25,000 which accounts for a 40% hike than the western belt.
- The decision of raising the salary of the nationals will play a crucial role in sorting out the issues of unemployment.
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.
