As you may have heard, the Ministry of Economy issued a resolution that allows foreign investors to have 100% ownership when they form a new Mainland Company. This is applicable only to Commercial and Industrial Business Activities and the new strategy excluded all professional business activities. According to the Department of Economic Development, the new regulation allows new potential foreign investors to have 100% ownership without a 51% UAE national partner, it allows also the Foreign Companies to establish a new Branch without the Branch Agent ‘Local Service Agent’. These changes give more credibility to the country as one of the leading Investor-Friendly hub that keeps developing and enhancing the corporate investing infrastructure and attracts more investors.
You need to keep in mind that as of now all Professional Business Activities are excluded from the decision and are not applicable to any changes which means that they remain to require a Local Service Agent in order to be incorporated, meanwhile, changing the form from a Sole Establishment to Civil Company or to Limited Liability for some Business Activities does not change the fact that the license type remains Professional and still not applicable to the new changes.
Here are some questions that you may have in mind, and answers to help you identify your eligibility of the new promising changes:
Can I have a new 100% ownership General Trading License?
Yes, indeed. It is allowed now to have a General Trading Business Activity established with 100% Ownership as one of the approved commercial activities.
Read More Here: General Trading License
Can I Establish a Marketing Consultancy company with 100% Ownership as a foreign investor?
The Marketing Consultancy Business Activity is falling within the Professional License type and can be already established as a Sole Proprietorship (Not Limited Liability), but still requires a Local Service Agent in order to get incorporated.
Can I change my existing shareholding structure from 49/51 to 100%?
Yes, you need to bring the Local Partner to the Department of Economic Development in order to conduct the changes. A Non Objection from the Local Partner is required. You may get InTouch with us for assistance.
Can I open an industrial ‘Manufacturing’ license without a 51% Local Partner?
Yes. The majority of the Manufacturing Business Activities are available now for 100% Foreign Ownership.
