The UAE is a international hub for enterprise, presenting a positive market, strategic location, and investor-friendly rules. Traditionally, foreign marketers confronted the challenge of requiring a nearby sponsor to personal a mainland employer, frequently keeping 51% of the stocks.
With current felony reforms, overseas traders can now very own 100% of a mainland agency in eligible sectors, doing away with the need for a nearby sponsor. This manual explains the entirety you need to recognise, from eligibility and fees to the setup procedure, compliance, and benefits.
Shape My Business helps entrepreneurs set up completely foreign-owned mainland groups in UAE, imparting give up-to-end enterprise setup offerings, which include licensing, visas, and compliance support.
Understanding 100% Foreign Ownership in UAE Mainland
What Has Changed?
- The UAE authorities amended its organisation formation laws beneath Federal Decree-Law No. 26 of 2020, allowing complete overseas ownership for decided on business sports. Eligible sports encompass:
- Trading and business sports
- Professional offerings (IT, consultancy, advertising)
- Industrial or production operations
- Certain strategic sectors which include oil, protection, and natural sources may additionally nonetheless require local partnership.
Benefits of a hundred% Foreign Ownership:
- Full control over management and earnings
- Ability to repatriate budget freely
- Access to mainland UAE market and government contracts
- Improved credibility with customers and partners
- Flexibility to restructure and scale
Step-by way of-Step Guide to Setting Up a 100% Foreign-Owned Mainland Company
1. Verify Your Business Activity
Check whether or not your enterprise interest is eligible for complete overseas possession. The UAE keeps a fine list that outlines all activit
2. Choose the Right Legal Structure
The most common legal entity is a Limited Liability Company (LLC). Key features include:
- Single or multiple shareholders
- Limited liability protection
- License types: commercial, professional, or industrial
For professional services, a local service agent may be required, who facilitates government processes but holds no ownership.
3. Reserve Your Trade Name
Your trade name must comply with DED guidelines:
- Reflect the business activity
- Be unique and not already registered
- Avoid offensive or religious terms
Once approved, the name is reserved for your company registration.
4. Obtain Initial Approvals
Submit an initial approval application to the Department of Economic Development (DED) including:
- Passport copies of shareholders
- Proposed business activity
- Reserved trade name certificate
5. Secure Office Space
Mainland companies must maintain a physical office. Options include:
- Leasing a commercial office
- Co-working spaces approved for licensing
The Ejari tenancy contract is required for the licensing process.
6. Draft and Notarize the MOA
The Memorandum of Association (MOA) outlines:
- Shareholding shape (one hundred% overseas possession)
- Roles and responsibilities
7. Apply for the Trade License
Submit your notarized MOA, tenancy contract, and initial approvals to the DED to obtain the trade license, officially registering your business.
8. Visa and Bank Account Setup
Once licensed, you can apply for:
- Investor visa for shareholders
- Employee visas for staff
Open a corporate bank account to manage finances. Banks may require minimum deposits depending on your business type.
9. Maintain Ongoing Compliance
To retain your license and 100% ownership:
- Annual license renewal
- Maintain physical office
- Financial reporting and compliance
- Corporate tax compliance under UAE law
Shape My Business can provide PRO services to streamline compliance and approvals.
Cost of Setting Up a 100% Foreign-Owned Mainland Company
Item | Estimated Cost (AED) |
Trade License | 10,000 – 30,000 |
Office Lease | 15,000 – 100,000+ |
MOA Notarization | 2,000 – 5,000 |
Initial Approvals | 1,000 – 10,000 |
Visa Processing | 3,000 – 5,000 per visa |
PRO / Consultant Fees | 5,000 – 20,000 |
Bank Deposit | 25,000 – 100,000+ |
Why Use Professional Business Setup Services?
Starting a business in the UAE can be straightforward, but expert guidance saves time, ensures compliance, and reduces errors.
Shape My Business provides:
- Business setup and licensing services
- Visa processing for investors and employees
- Corporate bank account assistance
- PRO services for government approvals
Benefits of using professional services:
- Compliance with UAE laws
- Time and cost efficiency
- Reduced risk of errors
- Focus on core business operations
Conclusion
Setting up a a 100% foreign-owned mainland company in UAE is now easier and extra beneficial than ever. It gives complete manage, less difficult get entry to to the nearby marketplace, and income repatriation without a neighborhood sponsor.
With expert steerage from Shape My Business, marketers can navigate the prison requirements, save time, and consciousness on growing their enterprise optimistically.
FAQs
Can I own 100% of a UAE mainland company?
Yes, for sports at the “Positive List,” complete foreign ownership is allowed.Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Do I need a local service agent
Only for professional licenses; they act as a liaison and have no possession.
How long does the process take?
Typically 2–4 weeks for setup, longer for regulated sectors.
What is the cost of setting up a company?
AED 50,000 – 200,000 for the first year, depending on license, office, and visas.
Do I need a physical office?
Yes, all mainland companies must have a registered office.