How to Start Your Business in Dubai with 100% Ownership?

If you are an entrepreneur who is stepping back to start a company in Dubai or UAE because of the restriction in ownership. Then there is no need to worry anymore because UAE has issued an amendment in which the new investors have 100% ownership of the business. 

This is a huge change for foreign nationals to do company registration in Dubai. Because now foreign nationals don’t have to depend on UAE nationals for any signature or representation of the company. To know the benefits and reasons behind the change then read the complete article.

New Changes in the Business Ownership

In 2020, the Federal Decree-Law No. (26) announced the full ownership of onshore companies in Dubai. On the basis of a new amendment, now the share of investors is not limited to a maximum of 49%.

Now, the foreign investors have full ownership of the business. By issuing the guidelines the authority clarifies the procedure for the companies who want to take full ownership. These new regulations are amended by some provisions of Federal Law No. (2) of 2015.

This decision of the UAE government will attract investment and gives a competitive advantage to Dubai. Dubai will become an ideal investment destination for foreign investors. As per the Dubai Economy guidelines, 100% ownership is available to more than 1000 commercial and industrial activities and excludes 7 economic activities. 

Dubai economy states that the status of the current business license with full ownership and Emirati partner remains unchanged as per the MoA. The partners' agreement will reduce to 51% or withdrawal. Now foreign nationals don’t have to rely on the UAE nationals for signatures or they don’t require to submit the documents for bank KYC, no sharing of profit and capital.

Benefits of 100% Company Ownership Rule in Dubai

As per the amendment of 2021, CCL has made UAE business an investment-friendly jurisdiction, and its other benefits are: 

• The 100% ownership from around the globe will attract new investors and increase the chances that they start your business in the Dubai jurisdiction.
• Overseas investment and talent will grow in the emirate economic sector because of environmental-friendly activities such as hybrid power plants, solar panels, and other eco-technologies.
• With the new business set up the investment and talent will rise and promote global competitiveness in the country.
• A joint stock company can sell 70% of its share in an IPO, which is previously as low as 30%. 
• The shareholders can take firm to the court if the directors and general managers are found in any activity which causes financial loss.
• Now the corporate meetings can be joined by anyone including foreign investors, there is no longer the Emirate presides over the corporate meeting.
• Electronic voting is now possible at an annual general meeting.

Why do the Ownership Laws Revise?

Removing the previous ownership laws opens the economy for expat investors. The 100% ownership creates the hope to capitalize on the market with top talent around the world. The new changes in the ownership law were made for the following reasons:

• Easy down the process of doing business.
• Create a fertile legislative environment for businesses in UAE.
• Boost future investment and commercial opportunities.
• Making the economy powerful to face the disruptions taking place in the global economy.
• Raise the competitiveness of the business environment with the changing economy.
• Addressing the evolving needs of the UAE business community.
• Give a huge push to expat investors, businesses, and startups to invest in the country.
• Provide complete operational and legal control to foreign investors over their businesses without any intervention.
• Find business owners from around the globe and give them a hub for all the businesses set up to enjoy 100% ownership.

How Does 100% Ownership Affect Mainland Businesses?

As per this new law, the non-Emirates can fully own the businesses for as long as the sector allowed. Also, if you already own a business in UAE with previous shareholdings, then check those arrangements if you want 100% legal ownership. 

The existing Limited Liability Company (LLC) can sell the shares of UAE nationals to foreign nationals and can become 100% owner of the company.

UAE freezones are already allowing 100% foreign ownership. You should prefer to start your business in Dubai freezones because of the several incentives, and tax regimes.

Conclusion

The 100% ownership amendment of the UAE will increase its global positioning as an emerging market for foreign investors. Also, it shows that the company is building a positive environment for other country businesses. 

The business owners who want to set up their business in Dubai, there is no best time to go ahead with your business plan. Connect with us at Registrationwala, we assist you in the complete company incorporation in Dubai.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.