Dubai is a bustling hub of international business, and the United Arab Emirates (UAE) has recently made it easier for foreign citizens to own 100% of their business in the city. Business Link UAE, a business formation consultant, can help entrepreneurs obtain a professional services license on the Dubai mainland. This means that foreign citizens no longer need a local sponsor to open a company in mainland Dubai under the new law. However, if a foreign citizen wishes to provide services or consulting, they must have a local citizen of the UAE act as an agent for the company.
This agent will not be the shareholder of 51% of the company. The UAE still requires foreigners to find a local sponsor. To form a limited liability company under the Companies Act, you must have a local sponsor with a 51% stake in the company. But now, foreign citizens can obtain 100% ownership in Dubai for a continental company in some commercial activities and in most manufacturing activities, except in some strategic sectors such as insurance, defense and activities related to civil aviation. There are no nationality restrictions to be a 100% owner of a limited liability company in mainland Dubai; however, some nationalities must go through standard security approval and paperwork. Sponsors are Dubai-registered companies that sponsor expatriates and represent their foreign partners locally in Dubai.
With the new law allowing foreigners to own 100% of domestic companies, entrepreneurs no longer have to worry about ownership restrictions when starting a company in Dubai or the United Arab Emirates. The Federal Supreme Council has ratified and issued federal laws such as labor law in the United Arab Emirates, labor law, company registration in Dubai and immigration law in the United Arab Emirates. Starting June 1, the United Arab Emirates will allow 100% foreign ownership in mainland Dubai to limited liability companies. All current and former companies licensed in the United Arab Emirates can modify their statuses in accordance with the new corporate law.