The UAE’s announcement of 100% foreign ownership across the board will be fully effective from June 1, 2021. The new law is part of a series of measures introduced to make the UAE a more investment-friendly destination through cutting the cost of operations. This will enable the country to attract the big multi-national conglomerates and in turn boost UAE’s competitive edge.
Fully effective from 1st June 2021, UAE’s amended Commercial Companies Law is now allowing 100 % foreign ownership of companies in UAE. The cabinet, upon recommendation of committee, shall determine the list of activities with strategic impact and further licensing controls of companies engaged in any of such activities.
Advantages of 100% ownership
- Mandatory to have Emiratis as one of the shareholders in mainland companies
- Maximum 49% shareholding by foreign nationality
- Foreign company is required to have a local agent
- Not fully controlled by foreign nationals
Now (Effective from 1st June 2021)
- Not mandatory
- 100% shareholding by foreign nationality
- Not required
- Fully controlled by foreign nationals
|C.A Dheeraj Ranasaria
Managing Partner of Mac and Ross
|C.A Vaibhav Goyal
Auditor at Mac and Ross