Welcome to DhanGuard. Can I help you?
/ Blogs / Company Formation / What Is 100 Ownership In Uae

What is 100% Ownership in UAE? Read This.

By Sakshi Srivastava - 11 Jun 2022 Last Updated: 11 Jun 2022
What is 100% Ownership in UAE? Read This.

Table of Contents 

  1. 1. What are the New Regulations?
  2. 2. Where lies the Difference?
  3. 3. Who is qualified for 100% ownership of a business in the United Arab Emirates?
  4. 4. Why were laws and regulations changed to allow 100% ownership of a company?
  5. 5. Conclusion

The introduction of modifications to the Commercial Companies Law (CCL) from 1 June 2021, in what can only be described as a new dawn for the country's business community, now permits expats to hold 100% of a company in the UAE.

We'll go over the latest developments in depth in this blog, as well as what they signify for entrepreneurs and the UAE economy. The UAE's new laws allow foreign investors to possess 100 percent of the country, which is a groundbreaking step toward making the UAE a global commercial center.

Thus in today's blog, Dhanguard wil extensively discuss about 100% Ownership in UAE. so without any further ado, let's Learn!

What are the New Regulations?

The new regulations place a greater emphasis on regulating provisions for forming commercial entities with limited liability structures. A Limited Liability Company (LLC) can be owned by a single person or by a group of people.

Where lies the Difference?

Previously, expat company owners could only own up to 49 percent of their enterprises. The remaining 51% must be owned by a UAE national, generally known as an Emirati sponsor or partner.

Only a few operations in the professional services sector and a few free zones in the UAE allowed foreigners to hold 100% of the company.

Foreign investors are now excluded from the minimum percentage ownership requirement of UAE nationals, according to the modifications. As a result, natural and legal individuals can form firms on the UAE mainland without a local partner.

This means that expats can now own 100% of their property in the UAE by collaborating with a local service agent (LSA). Without owning shares in your firm, an LSA can assist you with all of the paperwork and licensing procedures. As a result, you have the authority to make decisions.

Who is qualified for 100% ownership of a business in the United Arab Emirates?

Dubai

The updated legislation will apply in Dubai to 1,061 of the 2,300 total economic activities listed in the Department of Economic Development's list (DED). As a result, nearly half of all commercial activities, including trading and manufacturing, are eligible for 100 percent ownership. However, 100 percent ownership for foreign investors in professional services operations in the UAE continues to benefit entrepreneurs. Instead of an LLC, they require a local service agent and closely adhere to the sole establishment legal structure.

Abu Dhabi

In the meanwhile, the majority of trading activities in Abu Dhabi still need investors to associate with an Emirati sponsor. As a result, they must abide by the 51-49 shareholding rule.

Other Emirate States

The application of 100 percent ownership differs by Emirate. While Dubai and Abu Dhabi have already implemented the new rules, other governments are anticipated to follow suit. Foreign investors will be permitted to fully own their businesses after the legislation is implemented by the relevant countries. Shuraa becomes your silent business partner for a little fee, assisting you with all of the formalities necessary in establishing a firm in the UAE with 100% foreign ownership.

Why were laws and regulations changed to allow 100% ownership of a company?

  • To create a favorable legal environment for business formation.

  • Facilitating 100 percent ownership of businesses in the UAE will improve the economy's readiness.

  • Make doing business easier

  • Boost investment and commercial opportunities to help prepare for the future.

  • Increase the competitiveness of the corporate environment in response to rapid economic changes and global economic advancements.

  • Respond to the needs of the UAE's business community as they change.

  • Increase the country's appeal to foreign investors, businesses, and even startups.

  • Ensure that foreign investors have total operational and legal control over their firms, free of any unwanted interference.

  • Attract business aspirants from all over the world looking for a place to call home and take advantage of the UAE's 100% foreign ownership policy.

The UAE has been at the forefront of developing innovative measures to attract the best talent and entrepreneurs to the region. The latest in a series of measures aimed at liberalizing business in the UAE, where foreigners account for more than 80% of the population, is the introduction of a new visa system.

The 'Virtual Company Licensed' was recently created in Dubai, allowing worldwide corporations to use a regulated e-commerce platform filled by Dubai-based enterprises while digitally exploring new markets and investment prospects. The latest decision aims to accelerate the UAE's economic progress and build on the country's previous achievements.

These strategic initiatives strengthen the UAE's investment appeal and advanced position on the global business map, while also enhancing the UAE's competitive advantages as an ideal investment destination.

Conclusion

Dhanguard is a pioneer in competent business formation services, has been assisting local and international entrepreneurs and investors take their initial steps since 2020. Dhanguard's bespoke business solutions have sown seeds for many businesses in the last two years of its existence.

From assisting entrepreneurs in determining the most appropriate jurisdiction, trade license, and corporate structure for their business to obtaining all required documents and approvals from various government agencies for the issuance of visas and licenses, Dhanguard takes care of all the steps and formalities so that businesses do not have to worry about legal procedures. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our Experts by visiting our Branch Office.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

Get Instant Advice