Under the new commercial company law, the Dubai Economic Department (DED) has now issued guidelines for full 100% foreign ownership in the emirate.
In the new guidelines, over 1,000 commercial and industrial business activities can now apply for 100% foreign ownership, removing the need for a local sponsor. Existing business licenses for which full foreign ownership is available and currently have an Emirati partner can withdraw from their partnership under certain legal proceedings.
Currently, 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, the DED confirmed 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, the DED has confirmed.
The changes to the commercial companies law are expected to increase the amount of foreign direct investment (FDI) into the country and will support the already thriving entrepreneurial ecosystem. Complementing these benefits for investors is a new 10-year visa option and citizenship for talented individuals.
To obtain a new 100% foreign-owned business licence or amend an existing MoA, contact us today for a consultation, we are here to advise you on the best possible structure and setup for your company.
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Synergy Gulf prides itself on providing impartial, efficient and exceptional service levels to ensure secure structures that match clients’ exact requirements are delivered quickly and efficiently. We specialise in the following service areas:
Company Formation in the GCC
Limited Liability Company (LLC)
Free Zone Entity
Representative Trade Office
Professional Service License
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Immigration Departure Procedures
Staff & Family Visas
Local Partnership Services
One of the most frequently incorporated commercial entities in the UAE is a Limited Liability Company (LLC). Under the law, certain business activities must have one or more local partners (shareholders) who must be a UAE national or a UAE company. The local partners are required to possess a minimum of 51% shareholding in the LLC.