Business setup in UAE . Company Formation in Dubai . Dubai Free zone Companies .

UAE to allow 100% ownership to foreign investors

By Admin


While many of the businesses in free zones in Dubai might have been allowed to operate under full ownership of foreign investors, the ownership of 51% shares by a local sponsor is a necessary requirement for a business setup in UAE to operate within the boundaries of the emirates.

The local sponsor requirement has to be fulfilled in order for foreigners to run their businesses in Dubai. They spend a good time finding a suitable local sponsor for their business setup in UAE. The local sponsor may be entitled to some payments; however, he does not have a say in the decision making process of the business. The good news is that the UAE might allow 100% ownership of businesses to foreign investors.

Company formation in Dubai might be very attractive and certainly very profitable; it still requires a business to go through a rigorous process for it to be able to run in Dubai. There are all kinds of requirements that it has to meet including environmental, ethical, health and other operational requirements.

The incentives of company formation in Dubai outweigh the little hard work required in the formation. Incentives of all types are provided by the government in order to promote trade and commerce in the UAE.

Free zone company formation

One of the famous company types is a free zone company. Foreigners interested in the UAE have been able to make use of these zones in order to setup their businesses. Dubai Free zone companies have become famous for the incentives they have received from the UAE government over the years and this type has become the favorite one for foreign investors. Here is why this is so:

  • The process to register a free zone company is easy and not too much documentation is required.
  • Foreign investors have the permission to repatriate 100% profits.
  • 100% ownership of businesses by foreign investors
  • Tax incentives are provided.
  • Ancillary support to firms is provided, encouraging business growth.
  • World class infrastructure has been provided for offices.
  • Business facilities like meeting rooms and lounges are well equipped.
  • Visa processing is made easier.

Dubai free zone companies also have the advantage of being located in areas that encourage them to grow and expand. A prime example is the Dubai Airport Free Zone. The Dubai free zone companies here have the logistics and supply facilities that other free zones might not have and this makes it easier for the firms in the Dubai airport free zone to produce efficiently and timely.

Advantages of the new policy

The allowance to own 100% of a company will only add to the attraction that foreign investors see in UAE, particularly Dubai. World class business infrastructure and a well-designed business environment are already playing a huge role in promoting businesses in the UAE. A relaxation in the ownership rules will further encourage investors to setup businesses and operate with more control and higher degree of freedom with a result oriented strategy.

Consultancies like KWS Middle East can help you take advantage of the new policy being implemented by the UAE government. The company provides company formation services as well as support through Pro services and services like visa application and trade mark registration.

You are only a step away from the world of opportunities. Step right in by contacting KWS Middle East today via email or call.

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