Full Foreign Ownership of Commercial Companies

As of June 1, 2021, the UAE grants foreign investors the right to 100% ownership of their LLC companies on Dubai’s mainland without the requirement of a local UAE sponsor. This reform, which takes effect as of November 16, 2020 and has been enacted under Federal Decree-Law No. 26 of 2020, promises to transform the possibilities available to global investors. Whether you’re starting up your trading LLC, tech startup or consultancy business, this guide looks at how 100% foreign ownership now works, the process for setting up an LLC in Dubai, costs, benefits, and what’s new in 2025. So let’s jump in and give you the rundown so you can navigate this investor-friendly environment and turn your business dreams into a reality.

Why Did the UAE Introduce 100% Foreign Ownership?

The move to allow 100% foreign ownership has been part of the UAE’s push to transform its economy into a global business hub. With worldwide disruptions, including the post-Covid recovery, the UAE government sought to encourage foreign direct investment (FDI), multi-national companies operating in the country, and economic diversification. The Dubai Cabinet, under the guidance of Sheikh Mohammed bin Rashid Al Maktoum, made several revisions to the UAE Commercial Companies Law to eliminate obstacles such as the need for a 51% local sponsor. This shift is in line with the UAE Long-term Vision & The Year of the 50th, The future of the national economy is envisioned with;

• Making a climate conducive to startups and investors.
• Achieving better rankings on the global ‘ease of doing business’ scale.
• Promoting cross-border deals in sectors such as renewable energy and technology.
• Establishing Dubai as an international hub for business.

By enabling foreign business owners to have 100% of ownership of their companies, the UAE challenges jurisdictions such as Singapore, and it is more convenient for you to set up shop while maintaining full control and receiving the lion’s share.

What is 100% Foreign Ownership for LLC Companies in Dubai?

100% foreign ownership: As a foreign investor, you can own 100% of the shares of your LLC company in Dubai Mainland without the requirement of a UAE national partner. Pre-2021, mainland companies had to have a local partner with 51% of the shares, hence limiting your ability to call the shots. The Federal Decree-Law No. 26 of 2020 fixed that by adding more than 1,000 economic activities to those eligible for full ownership. Here’s what you need to know.

The Legal Framework: The FDI Law and Amendments

The Federal Law No. 19 of 2018 on Foreign Direct Investment laid the ground for this with its Positive List of activities for 100% ownership. Highlights: The 2020 amendment to the Commercial Companies Law (Federal Law No. 2/2015) eliminated the 51% local ownership requirement for most commercial companies, as well as the requirement of a UAE national agent for foreign branches. Key entities involved include:

• Cabinet of the United Arab Emirates _ Permits permissible economic activities.
• Dubai Economic Department (DED): Responsible for registering companies in Dubai.
• Ministry of Economy--Guides national investment policy.

The legal system reform guarantees an expedited licensing process that is faster, more efficient and can cater to investors in the context of business setup in Dubai.

Key Changes in Ownership Rules

The revision introduced a number of new provisions to benefit foreign investors:

• No Local Partner: You are allowed to have 100% company ownership without any Emirati sponsor.
• More Flexible Governance Now, expatriates are also allowed to be on the board of directors/meeting chairmen.
• Amended IPO Cap: Shareholding cap for IPO UAE limit has risen to 70% from 30% for joint stock companies.
• Electronic Voting: AGMs may utilise electronic transactions for flexibility.
• Shareholder Rights: You have a right to sue for mismanagement, and you are preserving your equity participation.

These developments now allow you to be in ultimate control of your UAE business setup, from running day-to-day operations to profitsäß.

Strategic Sector Restrictions

Foreign ownership may not exceed 100% in all sectors. Seven key impact sectors continue to be restricted for national interest reasons:

• Security, defence, and military activities
• Banking Exchange houses and finance fflush Report this ad
• Insurance
• Currency printing
• Telecommunications
• Hajj and Umrah services
• Quran centers

If you’re doing professional services (such as a legal or medical consultancy), the Civil Transactions Law is likely to still require that you have a UAE national agent, though they won’t hold shares. Check with the DED to verify whether your business activity is eligible.

How to Set Up an LLC in Dubai with 100% Ownership

Let Us Establish Your LLC in Dubai with 100% Foreign Ownership. Establishing an LLC in Dubai with 100% foreign ownership is easy if you do it right. Here are the clear-cut, step-by-step company formation processes in Dubai, including all the costs, documents, and approvals you will need before your company is established.

Step 1: Choose your Business Activity:

There are more than 1,000 eligible business activities available, such as trading LLC, biotechnology research or e-commerce transportation. Check with the DED to see if your industry is eligible.

Step 2: Select a Company Name:

Make sure it is in line with UAE naming regulations (like no derogatory language, no religious terms).

Step 3: Submit All Incorporation Documents:

Draft your MOA and file other documents.

Step 4: Application for License Notification:

Register with the Department of Economic Development.

Step 5: 1- Open a Corporate Bank Account:

Open an account in a bank in the United Arab Emirates for your company.

Step 6: Getting Your Investor Visa:

Get a 2-year investor visa or a 10-year UAE Golden Visa if you’re worth more than AED 2m.

PRO services can also remove that burden, guiding you through the paperwork, approval and all documentation.

Costs and Fees for LLC Setup

The business setup cost in dubai varies depending on your activity and visa requirements:

• Service/Professional License: From AED 8,000.
• Commercial License: Prices begin at AED 14,000.
• Amendment of Current License: Minimum AED 5,000 to delete a local sponsor.
• Extras: Office rent, visa charges, and business setup consultant charges.

Unlike some countries, Dubai has one of the lowest share capital 100% ownership requirements, making it cost-efficient. The UAE’s tax-free system and the Tax Residency Certificate, Tax Residency Certificate, further relieve financial burdens, saving expats from the tiresome experience of paying taxes at home and abroad.

Required Documents and Approvals

What is required to register a company in Dubai?

• Passport copies for all shareholders
• MOA amendment (if transferring ownership already in place)
• Business activity details
• Evidence of a UK address (for a visa application)
• DED pre-approval for your license

The DED guarantees regulatory adherence, and PRO services could help make submissions easier. For ongoing concerns, if you want to remove a UAE national sponsor from your license, you need to have their signed agreement or go to the court of justice.

Mainland vs. Free Zone: Which Is Right for Your Business?

Between Dubai mainland and free zones, it will be based on the kind of business you are operating. Both allow 100% foreign ownership, but they contrast in terms of market access, costs and regulations.

Mainland Benefits: Full Market Access

Mainland businesses let you:

• Trading freely across the UAE, including government projects.
• Do not share profits with a sponsor in the local market.
• Work with no geographic limitations, similar to free zones.
• Connect to a business-oriented climate of simplified licensing.
• This is perfect for trade-oriented companies or local businesses.

Free Zone Benefits: Tax and Legal Benefits

• What free zones, such as DIFC and ADGM, provide:
• Duty-free operations and no excise duties.
• Common-law systems, attracting financial services and tech firms.
• Streamlined registration of company and visa applications.
• Mature ecosystems for startups and VC.

But free zones ban direct trade on the mainland, necessitating intermediaries.

Key Differences: Ownership, Trading, and Costs

Aspect	Mainland	Free Zone
Ownership	100% foreign ownership	100% foreign ownership
Trading	Full UAE market access	Limited to free zone or via agents
Costs	AED 8,000–14,000 (license)	Lower initial costs, but office rent
Legal Framework	UAE Commercial Companies Law	Common-law (e.g., DIFC, ADGM)
Visa Options	Investor visa, Golden Visa	Limited visa quotas

Mainland vs. free zone depends on whether you prioritize market access or tax benefits. A business setup consultant in Dubai can help you decide.

Top Sectors for 100% Foreign Ownership in Dubai

The Positive List has 1,065 economic activities that are helpful in achieving high growth potential. Let’s look at three that stand out for 2025. 

Renewable Energy: Solar And Green Technology

With Dubai focusing on becoming more sustainable, renewable energy is a hot opportunity:

• There are government incentives for the use of solar panels and hybrid power plants. 
• Green technology fits with the UAE’s net-zero targets. 
• Cross-country investments in sustainable projects are easy.

Technology: Biotech And E-Commerce

The technology sector is booming, with opportunities in: 

• Developing new medical solutions through biotechnology research.
• E-commerce, transport and online shopping through marketplaces, one of the pillars of Dubai’s digital economy. 
• Support from venture capital ecosystems for tech startups.

Trading and Logistics: Supply Chain Gaps In The Market

Trading LLCs thrive in Dubai’s strategic location: 

• The city’s position as a global trade hub gives it a comparative advantage in supply chain and logistics.
• There is a very high demand for cold storage of pharmaceuticals.
• Retail businesses focused on the UAE and GCC markets have an ideal client base.

All these industries support the Dubai Economic Agenda D33, which targets doubling the emirate’s economy by 2033.

Benefits and Challenges of 100% Foreign Ownership

Doing business in Dubai, 100% foreign ownership comes with pros and cons.

Why Full Ownership Boosts Your Business

• Complete control: Decision-making can be done without seeking approval from a local sponsor.
• Profit Retention: Enjoy 100% retention of earnings instead of the formerly split 51% share.  
• Market Access: Engage in trade throughout the UAE and participate in government contracts.  
• Tax-Free Environment: Enjoy the absence of income tax along with tax residency certificates offering global advantages.  
• Investor Visa: Obtain a 2-year visa or a long-term UAE Golden Visa.  

Undoubtedly, these benefits make Dubai a leading hub for global business and investment.  

Potential Challenges to Watch For

Strategic Sector Limits: Some sensitive areas, such as telecommunications, have a restricted zone under them, which requires special permits to operate within.  

• Emirate-Specific Rules: Each DED has its own set of rules, which differ from Dubai, Abu Dhabi, and Sharjah.  
• Legal Processes: Existing licenses may need arbitration to amend due to dissent among sponsors.  
• Initial Costs: While streamlined licensing helps, office rent and visa costs can be high.  

A business setup consultant can help navigate mounting these compliance and efficiency hurdles.  

2025 Updates: What’s New for Foreign Investors?

Starting July 2025, the UAE continues refining its policies:  

• UAE Corporate Tax: A 9% tax on corporate profits will be imposed on mainland businesses exceeding AED 375,000 in profit. However, free zones may retain their tax-free status for activities compliant with OECD Pillar Two.  
• New Sectors: Advanced manufacturing and AI are possible additions to the Positive List per Dubai Economic Agenda D33.
• Streamlining Approvals: The DED and the Ministry of Economy are working on further reducing digitisation for process approvals.
• The Expansion of Golden Visa: A growing number of foreign investors with lower investment requirements now qualify for the 10-year residency visa.

All of these changes make 2025 an optimal time to set up a company in the UAE, particularly in technology startups and renewable energy sectors.

FAQs on 100% Foreign Ownership in Dubai

Q1: What is 100% foreign ownership in Dubai?

It allows foreign investors to own 100% of their LLC company in Dubai mainland without a UAE national sponsor, per Federal Decree-Law No. 26 of 2020.

Q2: How much does it cost to set up an LLC in Dubai?

Costs start at AED 8,000 for a professional services license and AED 14,000 for a commercial license, plus visa and office fees.

Q3: Can I amend an existing LLC for 100% ownership?

Yes, you can remove a local sponsor by amending your MOA with DED approval, costing around AED 5,000.

Q4: What sectors are restricted for 100% ownership?

Seven strategic sectors (e.g., telecommunications, defence) require special approvals or partial local ownership.

Q5: How do I get an investor visa in Dubai?

After company registration, apply for a 2-year investor visa or a 10-year UAE Golden Visa if your net worth exceeds AED 2 million.

Q6: What’s the difference between mainland and free zone businesses?

Mainland businesses offer full UAE market access, while free zones provide tax-free benefits but limit direct trading.

Q7: Can non-residents own an LLC in Dubai?

Yes, any foreign national can own 100% of a Dubai mainland LLC, with no residency requirement.

Q8: How do I navigate strategic sector restrictions?

Consult the DED or a business setup consultant to check eligibility and secure approvals.

Q9: What are the benefits of 100% ownership?

You gain full control, keep all profits, and access the UAE market without a local sponsor.

Q10: How does the UAE corporate tax affect LLCs in 2025?

A 9% tax applies to profits over AED 375,000, but tax residency certificates prevent double taxation globally.

Conclusion: Seize the Opportunity in Dubai

100% foreign ownership in Dubai has transformed the UAE into a global investment hub, letting you fully own your LLC company without a local sponsor. From renewable energy to e-commerce transport, the Positive List offers endless opportunities. With streamlined licensing, tax-free benefits, and the UAE Golden Visa, Dubai is the perfect place to establish your international business in 2025. Whether you’re starting a trading company or amending an existing license, now’s the time to act. Consult a business setup consultant and turn your vision into reality in this business-friendly environment.