Foreign ownership of 100% possible now for companies incorporated in UAE

Byefficpro
International - Foreign Trade
  • UAE allows 100% ownership of businesses for foreign nationals from 1st Dec 2020 as per the Cabinet Resolution 16/2020.
  • The legal form of the businesses shall be a LLC or Private Joint Stock Companies (even single owned).
  • It may be noted that as per Commercial Companies Law, Law No.2 of 2015, foreign shareholding was limited to 49% in a Limited Liability Company (LLC) operating as an onshore UAE business. It required a UAE national or 100% owned UAE national owned company to hold the balance 51% shares.
  • The cabinet may stipulate activities to be considered of strategic importance and stipulate measures required for their licensing.
  • It will be interesting to see how the free trade zones (FTZ) position themselves going forward, as their main attraction was their offer of 100% foreign ownership.

Disclaimer:

The purpose of this blog is for education purpose and should not be construed as professional advice. Views expressed herein are the personal views of the author. Government or judicial authorities may or may not subscribe to the views expressed herein. Author of the blog is not liable for any implications arising out of actions taken based on the views expressed herein.

 

 

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