Full foreign ownership of a local company in the UAE

Full foreign ownership of a local company in the UAE

If your project is suitable for one of the permitted types of activities from the established list and has foreign investments, then it clearly claims full foreign ownership.

Below we have described step by step how the licensing of projects with foreign investment is carried out:

1. First, you need to decide on the type of activity and make sure that it is included in the permitted list, and then choose the organizational and legal form (LLC or CJSC). Do not forget about the minimum share capital requirements, currently the minimum is AED 3 million.

2. To obtain a license and its approval, you must fill out and submit an application.

3. Assign a trade name.

4. Obtain all necessary permits from the authorities that control the activities of companies with foreign investment.

5. Confirm the fact of filing an application to join the "Tawteen Partners Club".

6. Pay all fees and obtain a license.

7. Open a bank account for the company.

8. Register the obtained license with the Ministry of Economy.

After applying for a license, you must wait about 5 days before it will get approval.

Is it possible to transfer an existing company to a fully foreign owned company?

Yes, it is possible. A company that already exists is eligible for transfer to a fully foreign owned company if it has the same organizational and legal form required for local companies with full foreign ownership, namely LLC or CJSC.

Can a license be obtained if the project activity is not included in the permitted list?

If the project does not correspond to the established list, then an application must be submitted. Such projects can relate to the following sectors: real estate, hotel industry, retail trade, restaurant industry. An application is submitted to the authorities responsible for foreign investment on behalf of the foreign investor. After passing the stage of consideration of the application, the Foreign Direct Investment Committee submits recommendations to the Cabinet of Ministers