Federal Decree-Law No. (26) of 2020 was announced by the UAE government stating that 100% Business Ownership in Dubai for foreign companies in the UAE are now permitted. The economy ministry had issued guidelines for the procedures that allow foreign investors to attain full ownership. The procedures are required to be followed through the service channels of Dubai Economy or the digital platform named Invest in Dubai.
Some provisions of the new amendments of Federal Law No. (2) of 2015 have granted the foreign investors 100 Percent Ownership in Dubai of their business. Strategic decisions like these aid in making the UAE even more attractive for investment.
On June 1st after the commercial companies law came into effect, 59 investors started the procedures to attain 100% business ownership in Dubai in more than 1,000 commercial and industrial activities. The government has also declared that there is no requirement of additional fees, guarantees, capital limitations or even an Emirati agent.
What are the benefits of 100% Business Ownership in Dubai?
The newly amended policy for onshore investors is made available for more than 1,000 commercial and industrial activities. Only 7 economic activities are excluded with strategic impact. These activities include general trade, contracting, jewellery, luxury watches, foods, cars, and trucks trading within the commercial activities, metals, construction, flooring, building materials, food, water production, and paint sectors in the industrial field. Foreign investors dealing with kindergartens, elementary and middle schools, and also allowed 100 percent ownership in Dubai.
UAE’s economic ministry had assured that the status of pre-existing business licenses with full ownerships of activities and an Emirati partner will remain unchanged as per the Memorandum of Association (MoA) and the partners’ agreement. The new amended act allows reduction of the Emirati partner’s share of 51% or even withdrawal from the partnership as per the implemented legal measures.
Limitations of the Amendment
The amendment of the previous act does not permit changing the legal form of a company. However, the license can be transferred to a one-person company that has limited liability as per the DED guidelines. In addition to this commercial agencies are also not allowed to attain 100 percent ownership in Dubai because they are regulated by the Commercial Agencies Law.
In order to get a license or to amend a memorandum of association, you can log in to the “Invest in Dubai” platform. This unified digital platform offers all the guidelines that you need to follow to launch a business in Dubai. The Invest in Dubai platform provides a unique experience that lets users complete the licensing procedures smoothly. Launching a new business in Dubai is a matter of a few minutes in today’s world without the need for any expert assistance.
The Invest in Dubai platform can help you in initial approvals, trade name reservation, and issuance of instant licenses, Dubai SME licenses, Intelaq licenses, and DED Trader licenses in addition to license renewal.
FAQs
- Which business is best in Dubai?
Ans: The import & export business in Dubai is booming presently. The central location and economic diversity of Dubai are ideal for starting an international trading business. It can be rewarding in terms of expansion opportunities and profitability.
- What is the cost of registration of business in Dubai?
Ans: The cost of business registration in Dubai is based upon factors like the license type, company location, size of the office and visa requirements. An Indian entrepreneur can expect to spend a minimum of AED 20,000 to register a company.
- What is the customs code in Dubai?
Ans: Import or export goods to Dubai require the company to be registered with Dubai Customs to obtain a code for the clearance of goods. To obtain this code, the business must hold a valid trading or commercial license.
- How to start a business in Dubai?
Ans: The key steps to starting a business in Dubai include.
- Determining the type of legal entity.
- Choosing a trading name.
- Applying for a business license.
- Getting all the pre-approvals,
- Registering the business to get the license
- Can foreigners own a business in Dubai?
Ans: Yes. Any foreigner can start a business in Dubai. Several company formation experts and setup agents are available foreign entrepreneurs through the license, visa, and business incorporation processes.
How Spectrum can help you?
Spectrum Auditing and Accountingis an end-to-end accounting and audit services company andis a registered Tax Agent from Federal Tax Agency, UAE, based in Dubai. We offer VAT Agency& Audit services in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Fujairah, Ajman, Umm Al Quwaincovering the whole of UAE. We provide a comprehensive portfolio of services in everything related to Value Added Tax (VAT) from Tax Advisory Services, VAT Implementation Services,VAT Return Filing, VAT Compliance Review, TAX Consultancy Services and Tax Agent Services apart from Tax Audit Service.
Apart from the mandatory Value Added Tax (VAT), we also specialize in a spectrum of services which includes Accounting, Auditing, Economic Substance Regulations (ESR), Mergers and Acquisitions (M&A), Company Formation and Liquidation, Country by Country Reporting (CbCR), Business Advisory Services and other business services. Our magnitude of experience, competence and reputation makes us a distinctive world-class accounting service provider.
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