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Company Formation

Full Ownership Business In UAE

UAE Introduced 100% OWNERSHIP BUSINESS TO FOREIGNERS.

Foreigners can establish business with 100% shareholding in mainland without Emirati Partnership/ Sponsorship.

As per the new significant amendments inthe UAE Commercial Companies Law (Federal Law No. 2 of 2015),foreigners can establish 100% owned companiesin UAE mainland on specified business activities without the involvement of the Emiratis.

The new amendment in Foreign Direct Investment Law, which was enacted in 2018 will have wide-spread impact on the investment environment of the nation. The long-awaited and widely discussed move will get big boost in the UAE economy and it shows the courageous and competitiveness of the nation.

Currently, foreign shareholding is limited up to a maximum of 49% in ‘limited liability company’ (LLC) in mainland. The major shares of 51% are held by the UAE nationals/ local sponsor.

So, several specified categories of business licenses will no more require Emiratis as sponsors with 51 per cent shareholding effectively from 1stDecember 2020.

The highlights of the new amendments are:-

  1. a) 122 business activities (‘Positive List’) where foreign investors can hold full ownership.
  2. b) These Business activities run across 3 sectors;
  • Agricultural
  • Manufacturing
  • Services sectors; education, healthcare, food and hospitality etc.
  1. c) The amend shall be applicable to the following legal forms:
  • A limited liability companies, including one-person (single owner) companies.
  • Private joint stock companies, including one-person (single owner) companies.
  1. d) Minimum Share Capital

The minimum share capital in each sector are specified from 2 Million onwards.

e)Minimum percentage of Nationals

The minimum percentage of nationals employed in the FDI Project shall be in accordance with regulations of the Ministry of Human Resources & Emiratization.

  1. f) Involvement of the UAE nationals in other cases will be regulated by the concerned authorities.

The new changes to the FDI policy are expected to benefit the foreign investors as well as the nation in the following ways:

  1. Increase the flow of foreign investments.
  2. Expand wide range of business opportunities.
  3. Investment Friendly policy to attract more agricultural and industrial spectrum.
  4. Boost the UAE economy.
  5. The amendment is in force with effect from 1st December 2020.

It is reported that the existing companies will have a maximum of one year to comply with the amended law from the time it is enforced.

For more details, contact:

Adv. Mohammed Sharafudheen
Mob/Wapp: +971505093949
www.legalmaxims.com

List of Activities for 100% Business Ownership in UAE

 

 

List of Economic Sectors, Activities and Capital as per new amendments in FDI

 

 

AGRICULTURAL SECTORS

 

#

ISIC4

Economic Activities

Minimum Capital
Million/Dhs

FDI Requirements and Conditions

 

1

01111

Seeds Cultivation (Wheat, Corn, Barley, etc.)

7.5

– Use modern technology

– Bring high added-value

– Contribute in research & development

– Meet the requirements of licensing entities in the State

 

2

01112

Growing of leguminous crops

7.5

 

3

0113

Growing of vegetables and melons, roots and tubers

7.5

 

4

0114

Growing of sugar cane

7.5

 

5

0116

Growing of other non-perennial crops

7.5

 

6

0119001

Flowers and buds Cultivation

7.5

 

7

0121

Growing of grapes

7.5

 

8

0123001

Fruits and Citrus Cultivation

7.5

 

9

0124

Growing of pome fruits and stone fruits

7.5

 

10

0125

Growing of other tree and bush fruits and nuts

7.5

 

11

0126

Growing of oleaginous fruits

7.5

 

12

0127

Growing of beverage crops

7.5

 

13

01289

Growing of aromatic, drug and pharmaceutical
crops

7.5

 

14

0161

Support activities for crop production

10

 

15

0162

Support activities for animal production

7.5

 

16

0163

Post-harvest crop activities

7.5

 

17

0164

Seed processing for propagation

7.5

 

18

0210

Silviculture and other forestry activities

7.5

 

19

0240

Support services to forestry

7.5

 

 

 

MANUFACTURING SECTORS

 

20

10

Manufacture of food products (except):
1071 Manufacture of bakery products
105 Manufacture of dairy products
108 Manufacture of prepared animal feeds

15

Use modern technology
– Bring high added-value
– Contribute in research & development
– Meet the requirements of licensing entities in the State.

 

21

11

Manufacture of beverages (except) :
1101 Distilling, rectifying and blending of Spirits
1102 Manufacture of wines
1103 Manufacture of malt liquors

15

 

 

22

14

Manufacture of wearing apparel (except:)
14109 Tailoring and Sewing of Wearing Apparel
1410122 Military Garments Manufacturing

15

 

23

15

Manufacture of leather and related Products

15

 

24

16

Manufacture of wood and of
products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

15

 

25

2012002

Straight or Complex Fertilizers Manufacturing

15

 

26

2013

Manufacture of plastics and synthetic rubber in primary forms

15

 

27

2021

Manufacture of pesticides and other agrochemical products

15

 

28

2022

Manufacture of paints, varnishes and similar coatings, printing ink and mastics

15

 

29

2023

Manufacture of soap and detergents, cleaning and polishing preparations,
perfumes and toilet preparations

15

 

30

2029006

Glues and Prepared Adhesives
Manufacturing

15

 

31

2029008

Manufacture of dyestuffs and pigments

15

 

32

2029009

Textiles and Leather Finishing Used Chemical Materials Manufacturing

15

 

33

2029013

Manufacture of photographic plates, films

15

 

37

2029023

Aromatic Distilled Waters Manufacturing

15

 

38

2029024

Matches Manufacturing

15

 

39

2029025

Welding Powders and Pastes
Manufacturing

15

 

40

2030

Manufacture of man-made fibers

15

 

41

2100

Manufacture of pharmaceuticals,
medicinal chemical and botanical
products

15

 

42

22

Manufacture of rubber and plastics products

15

 

43

23

Manufacture of other non-metallic mineral products

15

 

44

24

Manufacture of basic metals (except:)
242 Manufacture of basic precious and other non-ferrous metals
243 Casting of non-ferrous metals

20

 

45

25

Manufacture of fabricated metal products, except machinery and
equipment except :
2529 Manufacture of weapons and ammunition

15

 

48

28

Manufacture of machinery and equipment n.e.c. except:
28259 Tobacco Processing Machinery Manufacturing

100

 

49

29

Manufacture of motor vehicles, trailers and semi-trailers

100

 

50

3011101

Building of Commercial Vessels

100

 

51

3011103

Ships and Floating Structures Sections Manufacturing

100

 

52

3011905

Construction of Drilling Platforms, Floating or Submersible

100

 

53

3011906

Construction of Floating Structures

100

 

54

3011907

Building of Hovercraft

100

 

55

3012

Building of pleasure and sporting boats

15

 

56

3020

Manufacture of railway locomotives and rolling stock

20

 

57

3030

Manufacture of air and spacecraft and related machinery except:
3030006 Military Ballistic and Guided Missiles Manufacturing

100

 

58

3090

Manufacture of transport equipment n.e.c.

20

 

59

31

Manufacture of furniture

15

 

60

3220

Manufacture of musical instruments

2

 

61

3230

Manufacture of sports goods

3

 

62

3240

Manufacture of games and toys

3

 

63

3250

Manufacture of medical and dental instruments and supplies

20

 

64

3290

Other manufacturing n.e.c.

3

 

65

3312001

Repair and maintenance of trains engines

15

 

66

3312002

Repair and maintenance of ship engines

15

 

67

3315001

Repair and maintenance of ships

15

 

68

3315004

Repair and maintenance of trains and railway equipment

15

 

69

3315005

Maintenance and Repair of Aircraft engines

15

 

70

3315006

Maintenance and Repair of Aircrafts

15

 

 

SERVICE SECTORS

 

71

6910002

Legal consultancy offices

In accordance with the legislation in force

– Not to plead before UAE courts.

72

692

Accounting, bookkeeping and auditing activities; tax consultancy

In accordance with the legislation in force

Only business tax planning, consultancy and preparation and review of business tax activities

73

711

Architectural and engineering activities and related technical consultancy

In accordance with the legislation in force

To be a natural or legal person excelling in this field

74

862

Medical and dental practice activities

75

75

Veterinary activities

76

620

Computer programming, consultancy and related activities

In accordance with the legislation in force

To provide a work team comprising no less than 5 members specialized in computer programming by the end of the first year of the company

77

72

Scientific research and development

In accordance with the legislation in force

In accordance with the legislation in force

78

77300-

Renting and leasing of
other machinery, equipment and tangible goods

79

 

471

Retail l sale in non-specialized stores (except cooperative societies 4711001)

100

80

731

Advertising

In accordance with the legislation in force

81

732

Market research and opinion polling

82

702

Management consultancy activities

83

712

Technical testing and analysis

84

331

Repair of fabricated metal products, machinery and equipment (except ships, aircrafts and bother transport equipment)

85

8121-81210

General cleaning of buildings

86

742

Photography activities

87

8292-82920

Packaging activities

88

823

Organization of conventions and trade shows

89

741

Specialized design activities

90

7490005

Legal Translation Services

91

7490006

Translation services, movies and television programs

92

7490012

Publications Translation Services

93

8299002

Simultaneous translation services

94

41

Construction of buildings

In accordance with the legislation in force

Permitted only for large-scale infrastructure projects like airports, roads, sports facilities and projects worth more than Dhs. 450 Million are permitted

95

42

Civil engineering

96

432

Electrical, plumbing and other construction installation activities

97

433

Building completion and finishing

98

431

Demolition and site preparation

99

439

Other specialized construction activities

100

7730009

Construction and Building or Demolition Machines and Equipment Renting

101

851

Pre-primary and primary education

In accordance with the legislation in force

 

1. Public education is excluded.
2. To obtain the approval of concerned entities for licensing these activities and observe the specified restrictions & standards
3. To observe the conditions and standards of educational institutions and ensure a high level of education

102

852

Secondary education

102

103

853

Higher education

103

104

854

Other education

104

105

370

Sewerage

In accordance with the legislation in force

106

382

Waste treatment and disposal

107

3900001

Pollution Treatment and Environment Protection

108

861

Hospital activities

100

1. This activity is subject to approval of competent entities depending on the economic need taking into account the number of hospitals and medical and health centers in a specific area.
2. Dubai Healthcare City is excluded from the restriction above.

109

869

Other human health activities

70

In accordance with the legislation in force

110

8211001

Hotel Management

In accordance with the legislation in force

111

8211004

Restaurant management

112

90009

Creative activities and presentation of arts drama (theater)

Permitted only for theater and live performance activities

113

9000104

Music Band

As per the
legislation in force

114

9000110

Circus

115

8130002

Landscape and gardening services

116

9103-91030

Botanical and zoological gardens and nature reserves activities

Only public gardens services and specialized gardens services

117

5012-50120

Sea and coastal freight water transport

In accordance with the legislation in force

118

5022001

Internal Water Transportation of Goods

119

7730016

Commercial Ships Rental

120

5222002

Ship Piloting and Towing

121

5222007

Marine towing of boats and jet sky

122

New

Activities of holding companies in intellectual property

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