Similar to the visa reforms introduced recently by the UAE, another initiative that has been noteworthy regarding the country happens to be the amendments made to the Commercial Companies Law (CCL) in June 2021. Resultantly, now foreigners or expats are permitted total ownership of businesses in the UAE. This initiative will definitely help the emirates to emerge as a major business hub in the Gulf region. So, let us understand what the measure implies for foreign or expat business owners.
The Unique Factor
The changed laws stress the revised procedures in establishing companies that are structured in limited liability in the UAE. The biggest reform under the new regime has been the freedom given to Limited Liability Companies (LLCs) to have a single owner or various stakeholders. Previously, in LLC companies, expat or foreign owners were allowed only 49 percent stakes and the remaining 51 percent had to be held by UAE nationals, Emirati sponsors or partners. Except for certain professional services or free zones, foreigners were not permitted total ownership of business ventures in the UAE.
Now with the new amendments, all of these have changed. So, currently, foreign businessmen can start business ventures in the emirates without a local partner or an Emirati sponsor. But certain restrictions still stand as well. Read further to know about the same.
What Does The Same Means For Dubai Or Abu Dhabi Ventures Launched By Foreigners?
In Dubai, the new laws will apply in 1,061 of 2,300 economic activities. Hence, close to half of the commercial activities, trading and manufacturing included, in the country would enjoy the privilege of total control. And in Abu Dhabi, a total of 1,105 commercial and industrial activities will be permitted 100 percent ownership for non-Emiratis. Business Owners of present companies get the right to adjust their status but they have to follow the regulations on activities or other applicable restrictions. To know about the full list of business activities that were allowed 100 percent ownership, click here.
4 Major Advantages Of Total Ownership
- Minimizes operating expenditures of companies
- Eases the process of doing business for foreign investors
- Accords flexibility in terms of operational matters for companies wanting to function anywhere in the country
- Creates a conducive atmosphere for investments
