Initially, 100% ownership wasn’t legal in Dubai. However, times now have changed. As per the new commercial companies law that will come into effect from June 1, 2021, investors can have 100% ownership. UAE allows 100 ownership of the mainland company setup.
Moreover, the existing companies can also change their status to comply with the new commercial companies’ law. The new laws will change the entire ownership program. The new law will be valid for commercial companies, especially for foreign investors.
What are the changes?
Initially, according to the Commercial Companies Law, Law No. 2 of 2015, the foreign investors had 49% in LLC Company Formation in Dubai. The locals or Emirati individuals could own a 51% share of the onshore or limited liability company. Moreover, in many companies, foreign investors had to meet certain criteria to keep operating.
According to the changes, any person with proper documents can establish a business in Dubai, foreigners specifically. Nonetheless, the law will not be applicable for all companies. The companies partly and wholly owned by the local or federal government are not eligible for this.
Landmark upgrade
The significant changes in the Commercial Companies Law are catering to the needs of landmark upgrade. The foreign investors can apply for business setup in the mainland.
The move has been introduced for individuals to make easy investments. Since local Emiratis had 51% investments, the foreign investors felt the threat. It was for this reason that the foreign investors did not bring more investments. Hence, the government is introducing new measures.
The 100% ownership UAE will eventually contribute to various activities such as banking, commercial agency, and foreign ownership. However, the FDI policy of Dubai may call for future revisions and amendments.
The implementation of 100% ownership in Dubai Mainland will completely depend on the UAE Cabinet resolution. Hence, the committee will look into the matter of foreign investments. Although 100% ownership is guaranteed, whether or not the foreign company will get it will depend on the merits and activities.
Property boosters
The federal and local governments around UAE are working to implement these foreign investment opportunities. This will, however, help in boosting the value of residential and commercial properties for the future. The 100% ownership policy will have a huge impact on Abu Dhabi and Dubai. Moreover, this will also contribute to maintaining the balance after a pandemic.
The move of 100% ownership Dubai mainland will eventually help to implement “Dubai Next”. In the past three decades, Dubai has shown massive improvements. They will grow more in the coming time, thereby making Dubai a great residency option.
Check valuations
The enterprise value of the organization will also have a huge impact. The foreign investors will need to consider the enterprise value and share too. The value of the company has always been one of the longest debates.
The move of 100% ownership in the UAE will, however, prove to be highly beneficial to foreign ownership. This will play an important role in making Dubai an attractive business option. However, it will eventually also help in regulating smooth businesses.
Do you know that UAE Allows 100 Ownership?
Benefits 100% Foreign Ownership
When the UAE allows 100 ownership, it was anticipated that there will be several changes in businesses. Undoubtedly, it has become an inevitable move for investors. Initially, there were no rules in terms of the UAE allowing 100 foreign ownership. But, now times have changed, it is extremely beneficial.
It is one of the most important parts of the ownership cabinet resolution. Nonetheless, not all businesses can be eligible for this. The foreign investors need to meet the criteria as set by the company. This will be helpful for gaining 100% ownership of the UAE.
Except Trading Activity other Activity such as Agriculture, manufacturing, and service will be some of the most commonly affected sectors. Nonetheless, these sectors need to meet the conditions that are set. The conditions are mentioned below
| Sectors | Condition |
| Trading | – |
| Agriculture | License use of modern technology; contributing towards research |
| Manufacturing | Contributes to research and development; use modern technology; have the proper license |
| Service | The condition for setting up the service will vary depending on the type of services that are set up. |
To get 100% ownership for foreign investors in UAE, it is crucial that the investors meet the basic criteria. However, the price for establishing or setting up a business usually ranges in millions. Depending on the zone where you are establishing the business, it is crucial to meet the basic criteria. Business Link UAE can help you understand the important process for business setup with 100% ownership UAE.
Investors looking forward to mainland company formation in Dubai, need to apply for the Dubai Mainland license along with the documents. Since Dubai has very strict laws, it is advisable to avoid any unwanted means. Business Link UAE can help you with 100% ownership in Dubai Mainland.
Was it necessary to revise the laws?
Yes.
The mainland company formation in Dubai bestowed the benefit of only 49% share to the foreign investors. Since maximum benefit was given to the Emiratis, the foreign investors did not bring investments. This was eventually beginning to impact the economy.
But, that is not all. There were several more reasons for revising the 100% ownership in Dubai mainland, most of which included the following
- Helps to create a flexible environment for business setup in Dubai mainland
- UAE allows 100 ownership will Boost the process and will contribute to increasing the economy of the country.
- Caters to the needs of changing economic environment and business community for UAE.
- Ease of conducting business
- Allows to bring more opportunities and investments from foreign investors in the near future
- The increase in the competitive environment also paves the way for development in the country.
- Expat investors, startups, and businesses can invest and push towards better globalization.
How will the entrepreneurs be affected?
With 100% ownership UAE, the business can function without any inconvenience. New entrepreneurs can always be on the competitive edge by regulating their businesses. The ease in doing businesses is only going to bring profits. Moreover, foreign entrepreneurs don’t need to worry about the taxes either. They need to keep tabs with the basics. To retain the visa, the entrepreneurs will need to visit Dubai once a year. Moreover, businesses over AED 10 million profit will also achieve a visa for 10 years.
Can a foreigner register a company in Dubai?
Yes.
Foreigners have been conducting businesses in Dubai since a long time. Although they were allowed 100% ownership in free zones, they had only 49% ownership in mainland. As per the new laws, with 100% ownership law, the businesses will be able to have complete ownership in Dubai. Business Link UAE is aimed at helping to develop 100% ownership as per the revised laws for foreign companies.
What businesses will function as per 100% ownership in the UAE?
All the businesses involved in commercial and industrial activity will be allowed to regulate as per 100% ownership in Dubai mainland.
Will I be taxed?
One of the main reasons why foreigners have been considering investing in Dubai, because there are no hefty charges on the individuals. There are no income tax profits. Business Link UAE has been offering business setup in dubai to all foreigners. If you are a foreign investor, you can collect the tax residency certificates. This helps you avoid the risk of double taxation.
If I own a business, do I need to visit once in every 6 months to retain the Visa?
No. As per the laws, once you get the visa for your company, you can easily regulate the business. However, the only difference is that you will need to visit the place once a year.
Shall I get a sponsor?
Unlike the earlier process, the new law does not require you to have any sponsor. As per the new law, you will get 100% sponsorship. However, you can always choose a business consultancy service. Business Link UAE is dedicated to offer 100% business ownership UAE support. We can help you from documentation to every basic procedure.
How to start a business in the UAE?
Once you are familiar with the mainland laws, you can start the business. The common process in which Business Link UAE can help you start the business in UAE include
- Choose your business activity
- Find out if the company name you’re selecting is available
- Fill up the documentation and paperwork with Business Link
- Get the license.
The free zones however will be affected the most. They were one of the most popular zones in the UAE for regulating businesses. Well, the coming in of 100% ownership in Dubai mainland will serve many benefits too.
There has been a significant need for change in laws with the UAE. The small changes will gradually lead to a better economic environment. The economy of the country will eventually grow when there is better investment from foreign expats. Eventually, with such progressive moves, UAE will soon become the global hub for entrepreneurs.
So, are you ready to enjoy the benefits of 100% ownership in UAE? Get in touch with Business Link
✉ info@businesslinkuae.com | www.businesslinkuae.com | +971 55 6070 118 | ☎ + 971 43 215 228
