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Foreigners’ Business Guide to Dubai Mainland Company 100% Ownership
As one of the world-famous economic hubs, Dubai has attracted the attention of many foreign entrepreneurs in the last decade. The favorable tax regime and facilitated company incorporation and registration in Dubai are numerous advantages that the multicultural business offers.
However, what was mainly considered a barrier for foreign entrepreneurs to start their business in Dubai Mainland was the absence of a 100% foreign ownership that obliged entrepreneurs to allocate more than half of their company shares with a UAE national as a local partner. Very recently, to be exact, in 2020, finally, the government issued the full foreign company ownership to guarantee that foreign entrepreneurs no longer need to worry about finding and collaborating with local business partners. However, some terms and conditions need to be considered and clarified further by the government. So far, the regulations put into force declare that.
- There are no additional fees, guarantees, or the capital required for full foreign ownership,
- 100% foreign ownership is still limited to some business activities but is available for more than 1,000 commercial and industrial activities,
- To obtain a license or amend the Memorandum of Association (MoA), now investors can log in to ‘Invest in Dubai,’
- Entrepreneurs who wish to start branches of foreign companies are not required to have an Emirati agent.
The decision to grant the 100% foreign business ownership initiative is in line with attracting more foreign investors, which translates into the expansion and growth of the UAE’s economy in the big picture. This business strategy will escalate the position of Dubai on the global business map and bolsters its position as one of the most favorable business and economic destinations in the world. Licensing and foreign investment are two of the key business strategies developed to enhance the country’s economy and are among the country’s primary economic resources. The 100% foreign ownership policy thus accelerates the UAE’s economic recovery and adds to the government’s gains so far.
Changes to the Already Operative Businesses and Mainland Companies
One of the convenient changes made for foreign entrepreneurs who already run a business under the popular legal structure LLC is that although the legal form cannot be changed from LLC to a Sole Proprietorship under a foreign name as per the existing law, the existing license can be transferred to a one-person company with limited liability.
It should be noted that the full foreign ownership policy does not cover commercial agencies because the Commercial Agencies Law regulates them. Branches of foreign companies, as previously decided, do not require an Emirati agent.
What Business Activities fall under Dubai Mainland Company 100% Ownership?
The business activities associated with the following categories are operated under the 100% business ownership, operated by foreign investors and entrepreneurs:
Fashion & Jewelry
Cars & Trucks Trading
Plants & Crops Sector
Metals & Construction
There are currently more than 1,000 commercial and industrial business activities that fall under the new rule. For more details on the eligible business activities to be conducted under the announced new law, contact our Company Formation Specialists.
It is also noteworthy that these business activities do not include economic activities with a strategic impact, narrowed down to only seven operative sectors.
How to Register a Dubai Mainland Company 100% Ownership
The procedure to apply for 100% foreign ownership is straightforward. Submitting the necessary documents of the owners like passport copies and more, to know the full documents required, get assistance from Choose UAE Company Formation Specialists. The team can assist you with the following:
- initial approvals,
- trade name reservation,
- issuance of instant licenses,
- Issuance of Dubai SME licenses,
- and license renewal.
Our fast and efficient licensing process and PRO services can help you navigate through your Dubai Mainland company setup and all the rules and regulations you need to know before starting your business in Dubai Mainland.
How Can Choose UAE Help
Choose UAE‘s Company Formation Specialists can provide professional business setup guidance and assist you in your decision-making by providing well-informed options from the suitable business activity and the right license option.
Get the most out of Choose UAE’s optimal customer service experience, hassle-free, efficient licensing services with a dedicated account manager.