Can you own 100% of a company in Dubai? Yes, as of recent changes in the UAE’s foreign ownership laws, expatriates can own 100% of a business in Dubai under specific conditions. This development is part of the UAE’s efforts to boost foreign investment and diversify its economy.
How Can Foreigners Own 100% of a Company in Dubai?
Understanding the Foreign Ownership Law Changes
In 2020, the UAE government made a groundbreaking amendment to its Commercial Companies Law, allowing foreign investors to own 100% of businesses in most sectors. This change removed the previous requirement for a local sponsor or Emirati partner to hold 51% of the company shares. The new law aims to attract global entrepreneurs and investors by offering more flexible business opportunities.
Types of Companies Eligible for 100% Foreign Ownership
Foreigners can own 100% of a company in Dubai under the following structures:
- Limited Liability Company (LLC): Previously, forming an LLC required a local partner. Now, foreigners can fully own LLCs in most sectors.
- Free Zone Companies: Businesses in Dubai’s free zones have always allowed 100% foreign ownership, offering tax benefits and simplified procedures.
- Professional Services Companies: These can be fully owned by expatriates, focusing on sectors like consultancy, art, and technology.
Sectors Open to Full Foreign Ownership
While the new law opens many sectors to full foreign ownership, some strategic areas remain restricted. These include activities related to national security, oil exploration, and certain banking sectors. However, industries like manufacturing, trading, and services are open, providing ample opportunities for foreign investors.
Steps to Establish a Fully Owned Foreign Company in Dubai
1. Determine the Business Activity
Before setting up a company, identify the business activity. This determines the type of license needed and whether full ownership is possible.
2. Choose the Appropriate Legal Structure
Selecting the right legal structure is crucial. Options include LLCs for most business activities or free zone companies for specific benefits.
3. Register the Company Name
Choose a unique business name that complies with Dubai’s naming conventions. Avoid names related to religion or offensive language.
4. Obtain Necessary Licenses
Depending on the business activity, apply for the appropriate licenses from the Department of Economic Development (DED) or relevant free zone authority.
5. Secure Office Space
Having a physical office is mandatory for mainland companies. Free zone companies may have flexible office requirements.
Benefits of 100% Foreign Ownership in Dubai
- Complete Control: Enjoy full decision-making power without needing a local sponsor.
- Profit Retention: Retain all profits without sharing them with a local partner.
- Access to a Thriving Economy: Dubai’s strategic location and robust infrastructure offer access to a dynamic market.
- Legal Protection: Benefit from a transparent legal framework that supports foreign investments.
People Also Ask
Can an Expatriate Own a Business in Dubai?
Yes, expatriates can own businesses in Dubai, especially under the new foreign ownership laws. They can fully own companies in most sectors without needing a local partner.
What Are Dubai’s Free Zones?
Dubai’s free zones are designated areas offering tax incentives and 100% foreign ownership. They are ideal for businesses focusing on international trade, technology, and services.
Is a Local Sponsor Still Required in Dubai?
A local sponsor is no longer required for most businesses in Dubai. However, some sectors, particularly those related to national security or strategic industries, may still require local involvement.
How Long Does It Take to Set Up a Business in Dubai?
Setting up a business in Dubai can take anywhere from a few days to several weeks, depending on the business structure and activity. Free zone companies often have faster setup processes.
What Are the Costs Involved in Setting Up a Business in Dubai?
Costs vary based on the business type, location, and required licenses. Generally, expenses include registration fees, office space, and professional services.
Conclusion
Owning 100% of a company in Dubai is now a reality for foreign investors, thanks to the UAE’s progressive legal reforms. This opportunity allows expatriates to fully capitalize on Dubai’s vibrant economy and strategic global position. For those considering this venture, understanding the legal framework, selecting the right business structure, and navigating the setup process are crucial steps. As Dubai continues to evolve as a global business hub, the potential for growth and success is substantial. For more information on starting a business in Dubai, consider exploring topics like "How to Register a Business in Dubai" and "Benefits of Dubai’s Free Zones."
