Categories
Company Formation

Expat Full Ownership Of UAE Business

‘UAE opens up its economy to all the Nationalities’

‘Majority Emirati Shareholder Requirement Removed’

UAE has been venturing in its Foreign Direct Investment Policy to ensure economic growth and encourage foreign investments; this is evidenced by the recently issued resolution. Taking immediate effect from 1st of December, 2020, the UAE has amended its Commercial Company Law which mandated the 51% shareholdings of companies to be owned by UAE nationals. Under the new amendments, mainland companies can now be established by foreign nationals without Local Partnership and retain 100% ownership in the business.

The amended resolution determines the followings:

  1. ‘Positive List’ of sectors and economic activities where foreign investors are allowed to take full ownership of the business. As per the decree, 122 economic activities are qualified for 100% ownership by expats. These economic activities run across 3 sectors;
  • Agricultural
  • Manufacturing
  • Services sectors; education, healthcare, food and hospitality etc.
  1. Minimum Capital is prescribed.
  2. Involvement of the UAE nationals in the FDI related companies will be regulated by the concerned authorities.

The changes made to the FDI policy are expected to benefit the foreign investors and the country in the following ways:

  1. Increase the flow of foreign investments
  2. Boost the UAE economy
  3. Wide range of investment opportunities
  4. Friendly investment policy that caters full ownership over the business.

Structured and precise details on the said amendment are yet to be known. Stay with us for any updates on the FDI policy. If you would like to know more on this update and how it might affect your business, Contact Us.

Categories
Property Investment

Property Investment in DUBAI: Should You Invest Now?

Due to the recent Pandemic, many Real Estate Companies in the UAE slashed the prices of the ready-made Real Estate Projects and Off-Plan.

If you are willing to invest and get profit in the coming years, this is the right time to invest in Property in Dubai UAE.

What’s more, there is a long term Visa attached to investment and ownership of Property.

Indeed there is no limit to the benefits received for investing in Real Estate in the UAE.

According to recent updates, here are few points to note about property Investment in Dubai UAE.

General Conditions:

  • Ownership of a property worth AED5 million or more will be eligible for a five-year residency visa.
  • Other investments of not less than AED 10million, including property – which must be worth no more than 40 per cent of the total investment will also qualify for a renewable residency visa every 10 years.

This means that where AED 10 Million is the investment amount, 40% must be in Real Estate.

  • Ownership of an investment through a deposit in an established company or a business partnership worth Dh10m or more will be granted a renewable residency visa every 10 years

Additional benefits

  • Visa holder can come along with Spouse and dependent children
  • If investment is in a company, an executive director and adviser can benefit from the 10 year visa of the investor.

What’s more?

  • Investment as partners should be AED 10 Million for each Partner and not a subdivision of the AED 10 Million.
  • To apply for the 5/10-year long term visa, a 6-month Multiple Entry visa will be granted to the intended investor in order to be able to apply for the investor visa

Exceptions

  • AED 10 Million must be fully owned by the intended investor, it must not be borrowed, which means that a real estate purchased cannot be mortgaged.
  • Ownership of funds used for investment must be proved via documents dating back to three years.

This means that bank statements submitted must date back to three years or shareholdings, dividends received etc.

  • The investor must be financially solvent.

In order to benefit from the 10 year Residency Visa and Emirate ID, owning a Property in Dubai will be one of the easiest means. This gives an Investor ample time to settle in the Country and multiply his funds.

To know more and if you require further assistance in this regard, Please don’t hesitate to contact US

Categories
Escrow Service

Escrow Service Explained

Steps, Procedure, Requirements and Timeline

Summary

The escrow process occurs between the time a seller accepts an offer to purchase a property and the buyer takes possession of the home.

The first part of the escrow process is to find an escrow such as an attorney, execute contracts on the scope of work and open an escrow account in which the deposit for the buyer intended to be made to the seller is to be held.

The buyer will get inspections completed, purchase insurance and perform a final walk through before closing the deal.

The buyer may walk away from the Agreement if conditions are not met or there is a problem with the property.

Detailed Procedure

  1. Open an Escrow Account

A Property Escrow Account is managed by a third party company in order to hold property payments, deeds and other documents related thereto. Usually the Escrow agent will be a neutral Third Party. Where an Attorney is handling this Process, it is usually referred to as “Settlement”.

Once the buyer and the seller agrees on a price and signs a mutually acceptable Purchase Agreement, the seller or its agent will take a deposit depending on the agreement. The Deposit will be applied to the down payment which should be deposited in an escrow account at the Escrow Company or service specified in the purchase agreement.

  1. Title, Home, pest, environmental Inspection and fulfillment of Purchase Agreement conditions

The Title Deed of the property must be inspected at the Land Department to ensure that the seller has the right to sell the property without any encumbrance. Likewise, depending on what was executed in the Purchase Agreement, the Buyer should get a professional home inspector to inspect the house and give a detailed report on any dangerous or costly defects in the home. At this point should there be any concern about the house, the buyer and either back out, ask the seller to fix them or to lower the price so as to carry out the repairs yourself.

All other inspection and conditions in the Purchase Agreement will be fulfilled at this point.

  1. Insurance

Insurance should be taken out and fulfilled according to the Terms of the Agreement. Usually the buyer decides which insurance company to choose and what insurance cover to take.

  1. Final Inspection

Just before closing off the deal, the buyer should inspect the house a final time. This is to ensure that no new damages occurred.

  1. Close Escrow

As soon as the buyer is satisfied with all the terms, and result of physical inspection, the Deed of transfer/ Deed of Assignment can be executed and the money from the escrow account delivered to the Seller. At this point, the Escrow’s responsibility is finished.

Timeline

The time line of the escrow service is dependent on the fulfillment of the process required in fully transferring the property from the seller to the buyer.

Our Consultants at Legal Maxims have got you covered. For a trusted and satisfactory service. Contact Us. We are waiting to assist you.