100% Foreign Ownership for Mainland Companies in the UAE

Here is an exciting news for all entrepreneurs who wish to start their business journey in the UAE mainland! An amendment to the Commercial Companies Law (CCL) now permits 100% foreign ownership for mainland companies in UAE. This new law is effective from 1 June 2021—subject to obtaining specific approval from the relevant authorities in each emirate. Currently, the minimum ownership percentage which an expat can have is 51% and 49 % to be held by a local sponsor. As a result, as companies set up in UAE FTZs often had to face many challenges. For instance, they were permitted to carry out only those activities for which they had license—either within the FTZ where they were registered or outside the UAE (subject to the laws of the countries concerned). However, this new amendment will give foreign investors the freedom to set up their fully owned companies in the mainland and flexibility to carry out business operations.

Reasons for Implementing Full Foreign Ownership for Mainland Companies Law

By relaxing the existing ownership restrictions, the UAE government hopes to attract more foreign investors, businesses, startups, and top talent from across the globe and as positioning the economy in a better position when it prepares for post-Covid recovery.

• Creating an investor-friendly legislative environment for business set up in the UAE
• Enabling ease of doing business
• Improving the country’s economy
• Preparing for the future by boosting investment and commercial opportunities
• Safeguarding the economy against possible disruptions taking place in the global economy
• Addressing the emerging needs of the UAE business community
• Enabling the country to attract expat investors, businesses/conglomerates/startups, etc.

As a result of this amendment, businesses that are already established in free zones can now establish themselves onshore. All current and previously licensed businesses in the UAE can now amend their statuses in accordance with this latest commercial companies law.

Are you an aspiring entrepreneur who is planning to establish your business in the UAE mainland? Corpin Consultants can assist you in company registration, license renewals, legal documentation, bank account opening and more. Contact us for more information.[/vc_column_text][/vc_column][/vc_row]