100% Ownership – A New Dawn for Businesses in the UAE
The UAE is known to adapt to the changing times with agility and grace, thanks to the visionary leadership and the welcoming nature of the Emiratis. In a yet another landmark decision taken recently, the President signed a new decree that updated the 2015 Commercial Companies Law. With effect from December 1, 2020, expatriate investors will enjoy 100 per cent ownership, revoking the requirement of having a UAE national sponsor.
The long-awaited 100 per cent ownership by foreign nationals of companies licensed and registered in the UAE is allowed as per Cabinet Resolution No. 16 of 2020.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, declared these new amendments highlighting how the UAE believes in enabling businesses to flourish, backed by a productive and investor-friendly legislative environment to enhance the UAE’s competitiveness.
As per the Commercial Companies Law, Law No. 2 of 2015, foreign shareholders were limited to owning a maximum 49 per cent in a ‘limited liability company’ (LLC) operating as an onshore UAE business. This required an Emirati individual or 100 per cent Emirati-owned company to hold the balance 51 per cent share as a local sponsor. The amended law will now allow natural and legal persons to establish companies without the need for a specific nationality.
UAE has always been at the forefront of change, be it innovation or technology. And this is yet another step forward, bringing a new dawn for businesses in the UAE to prosper and grow.