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No Need for a Local Sponsor in Dubai
In the continually evolving business landscape of Dubai, one crucial amendment has caused a paradigm shift in how foreign investors approach their businesses in the UAE. This change, stemming from the positive modifications in the UAE Commercial Companies Law (CCL) introduced in June 2021, abolishes the need for a local sponsor when setting up a business in Dubai mainland, making it an even more attractive destination for foreign investments.
- TABLE OF CONTENTS
No Need for a Local Sponsor in Dubai
Understanding the Amendment
The UAE CCL had previously required foreign investors to have a local sponsor owning 51% of their business when setting up in Dubai mainland. However, this law has now been updated, enabling foreign investors to hold up to 100% ownership of their companies in more sectors. This substantial change provides a vast array of opportunities for those interested in setting up a business in Dubai, facilitating a more simplified, streamlined process for foreign investment
Benefits of the Amendment
This game-changing amendment in UAE’s company law has several significant benefits. Most notably, it enhances the ease of doing business for foreign investors, allowing them complete control over their ventures. It also eradicates any potential risks associated with local sponsorship, such as disputes over ownership and control. Moreover, this change encourages more foreign investment, contributing to the diversification and growth of Dubai’s economy.
What This Means for Foreign Investors
For foreign investors, this means more freedom, control, and security when starting a business in Dubai. Not only can they maintain 100% ownership of their companies, but they can also directly control all business activities and financial affairs without having to involve a local sponsor. This major development will likely lure more investors to Dubai, thereby contributing to the city’s growth as a global business hub.
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How Can Choose UAE Help
At Choose UAE, we remain at the forefront of these changes, ready to guide our clients through the evolving business landscape in Dubai. From advising on the new regulations to offering complete assistance with your business setup, our expert team ensures a seamless journey towards achieving your entrepreneurial dreams in Dubai. Contact us today to learn more about how we can facilitate your business setup in Dubai without the need for a local sponsor.
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