UAE allows 100% ownership to foreign investors

UAE to allow 100% ownership to foreign investors
June 14, 2021

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The UAE allowed 100% ownership of businesses to foreign investors, effective 1st June 2021. Previously, giving 51% shares to a local sponsor was a necessary requirement for a business setup in UAE mainland. Expats considering to register a company in the UAE can hold full ownership in 2024.

While many of the businesses in free zones of Dubai have been allowed to operate under full ownership of foreign investors. The ownership of 51% shares by a local sponsor was compulsory requirement for a business to operate within the mainland. Formerly, the local sponsor requirement has to be fulfilled in order for foreigners to run their businesses in Dubai.

Foreigners spent a good time finding a suitable local sponsor for their business setup in the UAE. The local sponsors was entitled to some payments. However, they did not have a say in the decision making process of the business.

The 100% foreign ownership law has led to a boost in new business establishments. In this decade, many expats have took the initiative to incorporate companies in the UAE. With the financial boom in the Gulf region, expat investments will keep growing.

Company formation in Dubai

Having a corporate presence in Dubai is very attractive and certainly very profitable during 2024. It still requires a business to go through a rigorous process for it to be able to run in Dubai. There are all kinds of requirements that it has to meet including environmental, ethical, health, and other operational requirements.

The incentives outweigh the initial hard work of the company formation in Dubai. Because the UAE government provides all types of the rewards. This all adds up to promote trade, commerce, business, and industrial activities in the UAE.

Free zone company registration

One of the famous company types is a free zone company. Dubai free zones are popular for the incentives they receive from the UAE government. Many foreigners are making use of these free trade zones to setup their businesses in the UAE.

Free zones are the favorites for foreign investors due to these reasons through 2024.

  • Foreign investors get 100% ownership of businesses.
  • The process to register a free zone company is easy.
  • Not too much documentation is necessary for this purpose.
  • Foreign owners have the permission to repatriate 100% profits.
  • For many business categories, zero taxes are applicable.
  • In other sectors, there are several tax incentives.
  • Ancillary support to firms is encouraging business growth.
  • Physical offices make the most of the world class infrastructure.
  • Business facilities like meeting rooms and lounges are well equipped.
  • Visa processing is made easier.

The companies in different Dubai free zone have different incentives to grow and expand. A prime example is some free zones have the logistics and supply chain facilities that other free zones don’t have. This makes it easier for the firms in the Dubai airport free zone to produce efficiently and timely.

Advantages of the new ownership policy

The permission to own 100% of a company adds to the attraction that foreign investors see in UAE, particularly Dubai. World class business infrastructure and progressive business environment are playing a huge role in expanding businesses in the UAE. A relaxation in the ownership rules is persuading investors to setup businesses and expand operations.

They are operating with more control and higher degree of freedom with a result oriented strategy.

Business consultancies can help you take advantage of the modified business ownership policy by the UAE government. They provide company formation services of all kinds. Also, you can get various support/pro services like visa application and trade mark registration.

You are only a step away from the world of opportunities. Step right in by contacting KWS Middle East today via email or call. Your journey to open a business in Dubai/UAE starts here.

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