Dubai is one of the go to destinations for entrepreneurs to set up a business. The city has advantages like modern facilities, stable economy, and investor friendly laws, that gives a business setup in Dubai all the possibilities to become successful. The one question many foreigners ask is "can I own 100% of a business setup in Dubai?" The good news is, yes — today, foreign investors can enjoy full ownership in many sectors. Let’s explore how this is possible and what it means for anyone planning a business setup in Dubai.
In the past, Dubai’s business laws required foreign investors to have a local sponsor or Emirati partner who owned 51% of the business set up in Dubai shares if the company was on the mainland. This rule did not allow full control for foreign owners and made many entrepreneurs choose free zones for their Dubai business setup. However, this has now changed.
In 2021, the UAE government made some major changes to its Commercial Companies Law. Now the law allowed 100% foreign ownership in many Dubai business setup activities on the mainland. This change attracted more international investment and to make business setup in Dubai easier and faster for foreign entrepreneurs.
Understanding Free Zone and Mainland OwnershipTwo main options are available for a business set up in Dubai — mainland and free zone.
Free Zones: These are special areas where 100% foreign ownership for a Dubai business setup has always been allowed. Free zones also offer benefits like zero import/export taxes, simplified licensing, and complete profit repatriation. However, businesses set up in Dubai in the free zones were restricted to operate mainly within the zone or internationally — not directly in the UAE market.
Mainland: Before 2021, a business set up in Dubai on the mainland required a UAE national as a sponsor for most business types. But with the new law, many business activities now allow full foreign ownership, eliminating the need for a local sponsor. This makes it easier for global investors to have their Dubai business set up anywhere in Dubai and across the UAE.
The 100% ownership rule applies to many industries across the mainland. These include Dubai business setups in sectors such as:
If your business setup in Dubai is related to national security or strategic industries, then in that case you will need partial ownership of the local sponsor. You can check with a business setup company in Dubai to confirm if your Dubai business setup qualifies for 100% foreign ownership.
The biggest advantage of having 100% foreign ownership in a business setup in Dubai is that investors have full control over their business. They can make decisions freely without needing a local sponsor or partner. All profits from the Dubai business setup can be taken entirely by the business owner. It also simplifies operations since there are no partners for any shared agreements or restrictions. Foreign entrepreneurs gain more confidence knowing their business setup in Dubai is completely under their name. This change has made business setup in Dubai more attractive and opened the door for many new investors from around the world.
To have a business set up in Dubai with full foreign ownership involves a few clear steps. The process is smooth when done with the help of a business setup company in Dubai that understands all the legal requirements.
Choose Your Business Activity:The first step of course is to decide the kind of Dubai business setup you want. The kind of business could be trading, services, consultancy, or manufacturing. The type of business setup in Dubai determines the license you will need.
Select the Company Structure:
Most business setups in Dubai owned by foreigners are set up as Limited Liability Companies (LLCs). Options are available to have a Dubai business setup as branch offices or single owner establishments.
Your business setup in Dubai should have a trade name. The trade name should follow Dubai’s naming rules. It must be unique and should not violate local cultural or religious instructions.
Get Initial Approval:After these steps, the next move is to submit your application to the Department of Economy and Tourism (DET). The initial approval for your business setup in Dubai is obtained from here.
Prepare the Memorandum of Association (MOA):The MOA outlines your Dubai business setup's structure, business activities, and ownership details. It must be signed and verified by a government representative in Dubai.
Lease an Office Space:Every business setup in the Dubai mainland requires a physical office space. You will have to submit your tenancy contract (Ejari) as part of your license application.
Obtain Your Business License:When all these documents are approved, you’ll receive the business license for your business set up in Dubai. Now your company can officially start operations.
Documents Required for A Business Setup in DubaiTo set up a Dubai mainland company, you typically need the following documents:
These requirements are not the same for every business setup in Dubai. They vary depending on your business type and so consulting a business setup company in Dubai ensures you get it right the first time.
ConclusionSo, can foreigners own 100% of a business in Dubai? The answer is a confident yes. The UAE’s updated business laws now give foreign investors full ownership in many sectors, especially in Dubai’s mainland. This major change has opened the doors to endless opportunities for international entrepreneurs who want to expand their business in the Middle East.
Whether you choose to set up in a free zone or on the mainland, business setup in Dubai has never been easier or more rewarding. With the help of a professional business setup company in Dubai, you can navigate the process smoothly and start operating in one of the world’s most dynamic business cities.