The Dubai Economy has recently issued the guidelines for 100 percent ownership for foreign investors started from the beginning of June 2021. These changes are expected to encourage foreign direct investment flows into the vital economic sectors of the country and will strengthen entrepreneurship also including a 10-year investor visa and citizenship for talented people. The measures are introduced to make the UAE a more investment-friendly destination
Dubai Economy says the strategic decision will add attractiveness to UAE’s investment and its position on the global business map, meanwhile, it stiffens the competitive advantages that Dubai enjoys as an ideal investment destination.
This decision will boost the economic recovery of the country and improve the high ranking of Dubai in international investment indicators and leading global indices showing the ease of doing business and business expansion.
The Sharjah Economic Development Department (SEDD) also announced that it would be implementing the full foreign ownership policy, allowing investors to own 100 per cent of commercial and industrial companies to practice activities in the Emirate of Sharjah.
What are the full ownership business activities included?
The commercial activities in which full ownership include general trade, contracting, jewellery, gold, pearls, luxury watches, foods, as well as cars and trucks trading.
In the industrial category, full ownership includes the metals and construction, flooring, building materials, foods, water production and paints sectors.
A kindergarten, an elementary and middle school, and a hotel also sought 100 percent ownership.
According to Dubai Economy, there are more than 1,000 commercial and industrial activities included in the list of 100 percent foreign ownership excluding economic activities with a strategic impact, which are in seven sectors only.
Click here to see the full list of activities for 100 percent ownership
How it will affect the existing LLC businesses
The existing business licenses, where the activities of full ownership available, with a local partner, remains unchanged as per the Memorandum of Association (MOA) and the partner’s decision. Below given are a few things you need to know as a business owner:
- A reduction of the percentage share of the Emirati partner from 51 percent or their partnership withdrawal is possible according to the legal procedures.
- Full ownership does not bring any change to current procedures or requirements for getting a trade license in Dubai, excluding the need for an Emirati partner or specifying a fixed percent for them. No additional fees, guarantees or capital required for full foreign ownership.
- As per the existing law, it is not possible to convert the legal form of a company from LLC (Limited Liability Company) to a Sole Proprietorship under a foreign name
- The trade license can be transferred to a one-person company with limited liability.
- Full ownership is not applicable to commercial agencies, as they are regulated by the Commercial Agencies Law.
- Branches of foreign companies do not require an Emirati agent.
How to get a full ownership license in Dubai
Investors looking for full ownership can complete the procedures with the proper guidance of experienced business setup consultants at Decisive Zone, they offer the most competitive means to setup a business in Dubai.
Contact us to get the latest information and guidelines on 100 percent foreign ownership on LLC. For a free consultation call us at +971 4 584 7332 or mail at [email protected]