Foreigners establishing a company in the United Arab Emirates will no longer need UAE shareholders or representatives under the UAE Corporate Law Amendment (100% Ownership in Dubai Mainland) scheduled to take effect on June 1.

For a long time, the UAE government has been working on economic diversification. Regular regulation changes have undoubtedly aided the country’s economy in becoming stronger, increasing foreign investment, and moving away from its reliance on oil income. Due to the UAE’s evolving Foreign Direct Investment (FDI) policies, which are becoming increasingly foreigner-friendly, starting a business has gotten easier and more hassle-free over the years. This is particularly true in the Emirate of Dubai, which presently includes over 30 Free Zones. With the recent announcement of 100% Ownership in Dubai Mainland, the UAE as a whole is trying to provide investors from all over the world with more and better FDI prospects. Foreign investors can now have full ownership of the companies set up on the mainland. 

With RadiantBiz, you can have your dream company up and running quickly and easily with the help of professional advisers and customised solutions. Until now, if expats wished to start a company in UAE, the general rule was that 51 percent of the shares had to be purchased by UAE nationals (or entities wholly owned by UAE nationals). The UAE Companies Law included this requirement. Although the general impression has been that it is possible to modify the economic power of the international and local shareholders to some degree when it comes to economic 100% ownership in  Dubai Mainland and decision-making in the company, there has always been concern about the feasibility of such agreements.

Last year, the United Arab Emirates issued a law permitting 100% foreign ownership of businesses. This is one of many measures aimed at attracting investors and foreigners who have been severely harmed by the outbreak of the coronavirus. Foreigners may already own up to 100% Ownership in Dubai Mainland  companies registered in designated business parks classified as “free zones” by previous 2018 law.

For a long time, the UAE government has been working on economic diversification. Regular regulation changes have undoubtedly aided the country’s economy in becoming stronger, increasing foreign investment, and moving away from its reliance on oil income. Due to the UAE’s evolving Foreign Direct Investment (FDI) policies, which are becoming increasingly foreigner-friendly, starting a business has gotten easier and more hassle-free over the years. This is particularly true in the Emirate of Dubai, which presently includes over 30 Free Zones. With the announcement of 100 percent foreign ownership in key sectors, the UAE as a whole is trying to provide investors from all over the world with more and better FDI prospects.

In the past, if an expatriate wanted to setup a company in the UAE, as a general rule, 51% of the shares had to be acquired by the UAE citizens (or a company wholly owned by the UAE citizens). The UAE Companies Act included this requirement.

With regard to 100% economic ownership of Dubai mainland and corporate  decision-making, there is a general perception that it is possible to change the economic strength of  international and domestic shareholders to some extent, but on its feasibility. Was always concerned. agreement.

• During corporate registration in Dubai, UAE companies no longer need to have a majority of Emirati shareholders and local representatives.
• Allows 100% foreign ownership of corporate organisations in the United Arab Emirates. H. Land companies in accordance with the UAE Cabinet Policy established in the form of a Cabinet resolution.
• If the company is involved in a proceeding by a director or officer and the company loses profits, the owner has the right to sue the company in court.
• Allow local governments to recognize the required capital, ownership ratio, and onshore establishment consent in accordance with Cabinet decision guidelines. Previously, these authorities were limited to the Ministry of Economy or the Economic Affairs Bureau of each emirate.

The United Arab Emirates is focused on building the already established popularity of buyers, entrepreneurs, start-ups and top talent markets around the world by removing existing barriers and opening up the economy. increase. Recovery after Covid and reexamination of vision for the next 50 years.

New investors in the UAE market have strategic advantages when it comes to the flexibility of establishing a company. Non-Emirati of all nationalities can now fully own the company under the new law as long as they belong to one of the permitted industries.

Each business may have unique requirements such as location, customer convenience, logistics feasibility, and banking services.  RadiantBiz understands these unique principles and provides clients with expert and reliable advice on the latest laws and applicable regulations, awareness of  rights, and cost-effective business solutions tailored to  business needs and budgets. Talk to our expert now to get solutions to all your business-related questions and problems.

If you have any question related to 100% Ownership in Dubai Mainland, feel free to contact our experts at: +971 55 234 7124 or info@radiantbiz.com