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:-
- a) 122 business activities (‘Positive List’) where foreign investors can hold full ownership.
- b) These Business activities run across 3 sectors;
- Agricultural
- Manufacturing
- Services sectors; education, healthcare, food and hospitality etc.
- 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.
- 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.
- 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:
- Increase the flow of foreign investments.
- Expand wide range of business opportunities.
- Investment Friendly policy to attract more agricultural and industrial spectrum.
- Boost the UAE economy.
- 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
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AGRICULTURAL SECTORS
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# | ISIC4 | Economic Activities | Minimum Capital | FDI Requirements and Conditions |
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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 |
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2 | 01112 | Growing of leguminous crops | 7.5 |
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3 | 0113 | Growing of vegetables and melons, roots and tubers | 7.5 |
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4 | 0114 | Growing of sugar cane | 7.5 |
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5 | 0116 | Growing of other non-perennial crops | 7.5 |
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6 | 0119001 | Flowers and buds Cultivation | 7.5 |
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7 | 0121 | Growing of grapes | 7.5 |
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8 | 0123001 | Fruits and Citrus Cultivation | 7.5 |
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9 | 0124 | Growing of pome fruits and stone fruits | 7.5 |
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10 | 0125 | Growing of other tree and bush fruits and nuts | 7.5 |
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11 | 0126 | Growing of oleaginous fruits | 7.5 |
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12 | 0127 | Growing of beverage crops | 7.5 |
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13 | 01289 | Growing of aromatic, drug and pharmaceutical | 7.5 |
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14 | 0161 | Support activities for crop production | 10 |
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15 | 0162 | Support activities for animal production | 7.5 |
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16 | 0163 | Post-harvest crop activities | 7.5 |
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17 | 0164 | Seed processing for propagation | 7.5 |
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18 | 0210 | Silviculture and other forestry activities | 7.5 |
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19 | 0240 | Support services to forestry | 7.5 |
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MANUFACTURING SECTORS
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20 | 10 | Manufacture of food products (except): | 15 | Use modern technology |
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21 | 11 | Manufacture of beverages (except) : | 15 |
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22 | 14 | Manufacture of wearing apparel (except:) | 15 |
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23 | 15 | Manufacture of leather and related Products | 15 |
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24 | 16 | Manufacture of wood and of | 15 |
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25 | 2012002 | Straight or Complex Fertilizers Manufacturing | 15 |
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26 | 2013 | Manufacture of plastics and synthetic rubber in primary forms | 15 |
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27 | 2021 | Manufacture of pesticides and other agrochemical products | 15 |
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28 | 2022 | Manufacture of paints, varnishes and similar coatings, printing ink and mastics | 15 |
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29 | 2023 | Manufacture of soap and detergents, cleaning and polishing preparations, | 15 |
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30 | 2029006 | Glues and Prepared Adhesives | 15 |
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31 | 2029008 | Manufacture of dyestuffs and pigments | 15 |
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32 | 2029009 | Textiles and Leather Finishing Used Chemical Materials Manufacturing | 15 |
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33 | 2029013 | Manufacture of photographic plates, films | 15 |
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37 | 2029023 | Aromatic Distilled Waters Manufacturing | 15 |
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38 | 2029024 | Matches Manufacturing | 15 |
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39 | 2029025 | Welding Powders and Pastes | 15 |
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40 | 2030 | Manufacture of man-made fibers | 15 |
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41 | 2100 | Manufacture of pharmaceuticals, | 15 |
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42 | 22 | Manufacture of rubber and plastics products | 15 |
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43 | 23 | Manufacture of other non-metallic mineral products | 15 |
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44 | 24 | Manufacture of basic metals (except:) | 20 |
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45 | 25 | Manufacture of fabricated metal products, except machinery and | 15 |
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48 | 28 | Manufacture of machinery and equipment n.e.c. except: | 100 |
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49 | 29 | Manufacture of motor vehicles, trailers and semi-trailers | 100 |
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50 | 3011101 | Building of Commercial Vessels | 100 |
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51 | 3011103 | Ships and Floating Structures Sections Manufacturing | 100 |
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52 | 3011905 | Construction of Drilling Platforms, Floating or Submersible | 100 |
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53 | 3011906 | Construction of Floating Structures | 100 |
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54 | 3011907 | Building of Hovercraft | 100 |
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55 | 3012 | Building of pleasure and sporting boats | 15 |
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56 | 3020 | Manufacture of railway locomotives and rolling stock | 20 |
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57 | 3030 | Manufacture of air and spacecraft and related machinery except: | 100 |
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58 | 3090 | Manufacture of transport equipment n.e.c. | 20 |
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59 | 31 | Manufacture of furniture | 15 |
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60 | 3220 | Manufacture of musical instruments | 2 |
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61 | 3230 | Manufacture of sports goods | 3 |
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62 | 3240 | Manufacture of games and toys | 3 |
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63 | 3250 | Manufacture of medical and dental instruments and supplies | 20 |
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64 | 3290 | Other manufacturing n.e.c. | 3 |
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65 | 3312001 | Repair and maintenance of trains engines | 15 |
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66 | 3312002 | Repair and maintenance of ship engines | 15 |
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67 | 3315001 | Repair and maintenance of ships | 15 |
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68 | 3315004 | Repair and maintenance of trains and railway equipment | 15 |
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69 | 3315005 | Maintenance and Repair of Aircraft engines | 15 |
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70 | 3315006 | Maintenance and Repair of Aircrafts | 15 |
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SERVICE SECTORS
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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 | ||||||||||
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| 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. | ||||||||
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. | ||||||||
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 | |||||||||
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 | ||||||||||