The UAE stands as a prominent Middle East trade hub, renowned for its safety and stability. The mainland of the UAE attracts entrepreneurs for establishing corporations and opening bank accounts, thanks to its status as a tax haven and well-established banking network. Among the prevalent business forms in the UAE mainland is the Limited Liability Company (LLC). Recent cabinet decisions have eliminated the necessity for local sponsors in specific commercial activities, granting foreign investors the opportunity for 100% ownership in mainland companies within certain industries.
This change allows investors to form limited liability companies without the involvement of local sponsors, fostering a more investor-friendly environment. Commercial, financial, industrial, agricultural, real estate, and various economic operations on the mainland now operate under the amended Federal Law No. 2 of 2015 on Commercial Companies and Amended Law No. 26 of 2020.
The UAE Government, through a Cabinet resolution, has established specific capital criteria and conditions for expatriates seeking 100% ownership in mainland firms. Achieving full ownership of mainland enterprises necessitates meeting minimum share capital requirements, which vary from approximately AED 2 million to AED 100 million. The specific capital thresholds depend on the investor’s chosen industrial sector and business line. These regulations reflect the UAE’s commitment to attracting foreign investments while ensuring the economic growth and sustainability of the country’s diverse sectors.
