Setup Business in Dubai with 100% Ownership Eligibility
For a long time, the UAE’s “Companies Law” has been a source of discussion. What’s the reason? A ground-breaking reform that will allow 100% business ownership in Dubai if your company structure and operations meet the required parameters.
It’s a tremendous opportunity for any aspiring entrepreneur wishing to build their dream enterprise in the heart of the Middle East, Dubai. This means that 100% ownership in Dubai will no longer be limited to free zones.
Do You Want to Set up a Business in Dubai, UAE?
The revelation of 100% ownership signifies a pivotal point in the UAE’s history. Thanks to the amendments to the previous rules and regulations, you, me, and everyone wishing to own a business setup in Dubai can be proud owners. The UAE Ministry of Economy allows expats and international entrepreneurs to completely own onshore businesses. This has been effective as of June 1, 2021, and investors have already begun to flood in.
The UAE Government formulated the federal Commercial Companies Law, allowing foreign investors to acquire 100% of certain enterprises. This implies that foreign investors’ shares will no longer be limited to a maximum of 49%, in fact, can now be up to 100%.
What are Dubai UAE Onshore Companies?
An onshore (mainland) corporation can be set up inside a given jurisdiction to operate in both the local market and outside its borders. Foreign investors benefit from the declaration of 100% ownership. Onshore businesses can be established on any of the mainlands and benefit from several tax breaks and other perks.
Amendment of Law
The amended law in Dubai would enable investors to acquire 100% ownership of 1061 out of 2300 economic activities specified by the Department of Economic Development (DED). While professional services will continue to be 100% owned, you will still have a local service agent who will not be involved in the ownership.
The law does not apply to vital industries such as oil, gas, utilities, and transportation.
An expatriate can establish a business company in Dubai with the legitimacy of 100% ownership on the Dubai mainland.
The resolution on FDI and foreign ownership has evolved significantly throughout the years, with a focus on the current 100% corporate ownership. In an effort to lure even more international investors to Dubai, the prior resolution was totally rebuilt and contained the following three benefits, in addition to 100% firm ownership:
No UAE shareholders are necessary.
It is no longer necessary for foreign parent firms to designate an onshore UAE agent.
There are no extra fees or capital requirements for foreign owners.
The Expectation of a Business Set-up with 100% Ownership in Dubai
The rule will aid in the development of economic sectors. With the help of foreign investment and skills, environmentally friendly activities such as hybrid power plants, solar panels, and other green technology will expand.
As we have seen in the past, a favourable FDI policy constantly draws new foreign investors from across the world who see development potential in the highly desirable Middle Eastern market.
This step will boost global competitiveness. While the rule applies to all Emirates, local governments have the authority to choose the actual foreign ownership percentage, which can vary from 0% to 100%.