The 100 percent foreign ownership is NOW AVAILABLE for more than 1,000 commercial and industrial activities.
As per the New Amendments To The UAE Commercial Companies Law Of 2015 , It’s no longer mandatory to have an Emirati partner or specify a fixed share ratio for him/her. In other words, Under the New Law, companies with a sole shareholder no longer need to be owned by a UAE national (or by a company owned by a UAE national).
The latest guidelines issued by Dubai Economy also state there are no additional fees, guarantees or capital requirement for full foreign ownership
The changes to the commercial companies’ law are expected to encourage the flow of foreign direct investment into the country’s vital economic sectors and will bolster entrepreneurship in the Arab World’s second-largest economy.
The commercial activities in which full ownership was sought include general trade, contracting, jewellery, gold, luxury watches, foods, cars and trucks trading.
In the industrial category, full ownership was sought in 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.
The amendments are part of a series of measures introduced to make the UAE a more investment-friendly destination, which have also included the offer of 10-year visas for investors and citizenship for talented individuals.
While it is not possible to convert the legal form of a company from an LLC (limited liability company) to a sole proprietorship entity under a foreign name as per the existing law, Dubai Economy said the license can be transferred to a one-person company with limited liability.
Full ownership does not apply to commercial agencies, as they are regulated by the Commercial Agencies Law. Branches of foreign companies, however, do not require an Emirati agent.
To obtain your 100% ownership UAE license or amend the MoA, investors reach out to us.
As a primary requirement of Anti-Money Laundering Regulation in the UAE, Cabinet Decision No. 58 of 2020 regulating the Beneficiary Owner Procedures requires all business entities (unless exempt by the regulation) to prepare, maintain and submit a Beneficial Owner Register with its respective licensing authorities.
The Beneficial Owner is an individual who owns 25% or more shares (directly or indirectly) or has absolute control in the UAE entity or the UAE entity’s senior management.
Identifying the Beneficial Owner is a complex matter in the case of corporate chain shareholding structure whereby several holding companies hold the UAE entity.
The Beneficial Owner’s passport details and address of the corporate shareholder’s entities that own the UAE entity must be included in the Beneficial Owner Register and Ultimate Beneficial Owner (UBO) declaration form before submissions with the licensing authorities.
The natural person who ultimately owns or controls the Legal Person, whether directly or through a chain of ownership or control or any other indirect means, and also the natural person on whose behalf the transactions are being conducted or who exercises ultimate control over a legal person and finally owns or controls direct or indirect equity shares or shares of 25% or more.
It is not necessary for the Beneficial Owner to own shares in the company or contribute to the capital, as he/she can be the natural person who occupies a senior management position (controlling the company’s decisions) in the event that the Beneficial Owner cannot be determined as required.
It possible to replace / change the Beneficial Owner of the license
Yes, the amendment may be made via the electronic fields prepared by the concerned authority in advance for this purpose.
All companies registered in the UAE, including the free zones, are subject to the registration procedures with the Beneficial Owner data, with the exception of Public Shareholding companies and companies owned 100% by federal or local government agencies or companies affiliated with companies owned 100% by the UAE as well.
Who is authorized to provide the Beneficial Owner data?
The acknowledgment must be submitted by the company’s legal representative, such as, at least, one of the directors.
With regard to the natural person, it is necessary to provide the concerned authority with a copy of the passport or the Emirates ID of the citizens of the UAE; as for the legal person registered in the UAE, the concerned authority must be provided with the statute of the company. The foreign company must also provide the concerned authority with the name of the legal representative and provide proof of that. The company must keep a record of the Beneficial Owner that includes his personal data, place of residence, address, nationality and all data such as e-mail, contact numbers and other information that have been mentioned in the Cabinet Decision No. (58) of 2020.