100% Ownership in Dubai Mainland
Written By Antima – 21st April’22
What is the 100% Ownership in Dubai Mainland?
Until now, If any foreigners want to establish a mainland business setup in Dubai, he has to find an Emirati national. As per old law, foreigner investors has to provide emirati with 51% of their own company as an entitlement. But this law changed from the June 2021, since the UAE’s Ministry of Economy changed the Commercial Companies Law (CCL).
New law allows international investors and entrepreneurs to form and fully own mainland companies in the UAE. This clears the path for the emerging businesses to now fully own their Dubai mainland business setup.
This also included a number of additional process where the applicants had to meet a number of strict and stringent requirements to register for the foreign ownership exemptions, including considerable share capital donations, and the employment of UAE nationals.
What is the latest 100% foreign ownership law?
New mainland license law will amend the old companies law. As per new law, it will remove the general requirement for 51% UAE national ownership of UAE LLCs. Anyone regardless of nationality, can now fully own their mainland business setup in Dubai.
Key points to remember in the 100% foreign ownership law?
Here is a list of all the major changes in the latest amendment of the ownership law:
- During company registration in Dubai, it is no longer necessary for UAE entities to have a majority of Emirati shareholders and local agents.
- Permits 100% ownership in Dubai mainland, according to the guidelines issued by the UAE cabinet in the form of a cabinet resolution.
- A joint stock business can now sell 70% of its shares in an initial public offering (IPO). This figure had earlier been as low as 30%.
- The shareholders has the right to pursue legal action in court if the corporation participates in an activity that causes the company to lose money.
- It allows the local governments to acknowledge required capitalization, shareholding percentages, and approval for mainland company formation according to cabinet resolution policies. Formerly, the Ministry of Economy and subsidiary departments held these rights.
- As per new rule, an Emirati doesn’t need to officiate the company meeting; they are now open to all expatriates.
- The ban on foreign nationals serving on the board of directors has been eliminated. Annual general meetings can now include electronic voting as a result of the pandemic.
- As per the new law there is a provision of removal of leading officers/company chairpersons, if they misuse or abuse their power.
What is the importance of the 100% foreign ownership law?
The UAE government aims to put a positive spin on its already established appeal as a global market. The new rule has eliminated the existing obstacles and widened the economy for foreign investors.
These are some of the future aspects that the UAE government is trying to achieve in the coming years.
- Building a favourable legal environment for business establishment in the UAE. So that it may aid in the ease of doing business and the overall economy of the country.
- Future of the economy is safe and secure by increasing investment and commercial opportunities for foreign investors.
- Meeting the demands of the UAE business community. This new law also uplift the country’s appeal to expat investors, businesses, startups, and other entities.
Effects on the existing businesses
There is no doubt that the amendment will attract more international investors and businessmen from all over the world. The UAE government is trying their level best to lure the stakeholders so that it may help the economy in the future.
The initiative to allow 100% foreign ownership of UAE enterprises could considerably boost the UAE’s potential to foreign investors. Especially, those who may have been hesitant to enter the market due to shareholding constraints.
What benefits does it offer for a mainland business setup in Dubai?
These changes may also stimulate the long-term advantages of a mainland business setup in Dubai.
Unlike free zone firms, their economic operations are not confined to a certain area. With mainland license one can freely trade with any company, located within and outside of the UAE.
With mainland business license, you get to have a broader business scope. Hence, you get access to a better chance of expanding firm internationally. Establishing a mainland business setup in Dubai also has other advantages, such as no minimum capital requirement and the possibility of obtaining a residency visa.
Frequently Asked Questions
What is the time required to get the mainland license in Dubai?
You could get a mainland license in less than a week in Dubai. However, if you work with an efficient business setup consultant such as RadiantBiz, you can get the license in just 24 hours.
What is the cost of acquiring a mainland license in Dubai?
Well, the cost of getting the mainland license in Dubai totally depends upon the type of your business, office location, business activity and many other factors involved. The best way to get an instant estimate is our cost calculator. This will help you in getting a quick quote for the cost and proceed accordingly.
What is the process of trade name registration for the mainland business setup in Dubai?
The authority responsible for this is the Department of Economics (DED). When deciding on a name for your mainland business in Dubai, you must submit an application for the registration of your trade name. The reservation process just takes a day.
Which authority issues the mainland license in Dubai?
Department of Economic Development (DED), Dubai is responsible for issuing the mainland license in Dubai.
Can you own 100% of a company in Dubai?
Yes, as per the latest regulations, the UAE government has assigned 100% ownership in Dubai mainland. Now a foreign expat can have complete ownership of the company.
Can you expand your business with Dubai mainland license?
Yes, with a mainland license in Dubai, you are able to freely expand your business to other areas of Dubai and the UAE.
Get expert assistance from RadiantBiz
When it comes to business start-up, growth, or investment, Dubai has become the most desirable marketplace in the world. Now, foreign nationals will be able to control 100% foreign ownership of the company for onshore enterprises, which will be a game-changer for UAE and Dubai business growth, particularly for investors who want to invest in the UAE mainland but were limited by the former existing laws, which allowed local residents to possess 51% of share capital.
RadiantBiz can be an ideal business partner for you, who can help you through the process of obtaining a license and help you establish a mainland business setup in Dubai. We have been associated with many renowned entrepreneurs with their UAE ventures. Connect with our experts for a professional guidance and strategy building for a successful mainland business formation in Dubai.