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ownership of new Business

100% ownership of new Business

In May 2021 the Ministry of Economy made a very important declaration stating that the new commercial Company regulation with regards to the 100% Foreign Ownership will be
effective from 1st of June 2021.
The new regulation will empower organizations to apply for Business License without the
necessity of UAE National as the accomplice of the organization. Now a Foreign individual
or a Company is allowed to establish their business in the UAE with 100 percent full

Why is there a rule of 100% ownership?

You can easily understand the motto behind the 100% Ownership of a company by foreign
Business Makers & Investors through these little elaborated points…

1. Attracting Big Business & Companies:

The rule of 100% ownership has been revised because big businesses or companies come
forward to invest where they can have 100% control over their business, without the
interference of the company in the governments.

2. Boosting the Economy of Country:

This initiative of 100% ownership will bring more investors from all over the globe.

3. Ease of Doing Business:

At the same time, the ease of doing business in the Arab Emirates will be more and this is a very good step to boost future investment and commercial opportunities

4. Getting More Commercial Opportunities:

This initiative will bring in more creative ideas, technology and investment when people have full control on their business.

5. Justice with Business Owners:

Bypassing the proposal of 100% ownership of the business, the government of the UAE has not only done justice to the business owners but has also worked to further the economic growth of the country, for this reason, the law of 100% ownership was revised.

The Department of Economic Development has made some regulations and the eligibility
criteria for 100% ownership. There are few activities which will require a local Emarati

Benefits of 100% Ownership

100% ownership is beneficial in many cases:

Economic Growth

As such it helps in developing the economics chapter under this manual

Enhancement of Green Technology

With the help of this, along with green technology, overseas investment can also be increased and new talent can be given the opportunity.

Positive Financial Development

A positive financial development indicator can be created, which attracts foreign investors . It is the most viewed financial development indicator in the whole world, which attracts more tomorrow in any business.

Empowering other related Sectors

With its help, other sectors can also be increased in the country, which is most useful in the Middle Eastern market

Global Competitiveness

Global competitiveness will increase and people will start a new campaign in their country to apply this law

Financial Developments

There is a lot of speculation on the economic growth concerning financial development indicators and foreign ownership, but when it was announced as 100%.

No Need of Shareholders

Then the global market had achieved a new boom in itself. It has many other advantages such as it does not need shareholders in similar ways

No Need of Local Sponsors

Here there is no need to appoint local sponsors and investors as local agents, and foreign parent companies.

Key Points:

● Here there is no need for foreign parent companies to hire or appoint a local sponsor.

● For free zone companies and mainland companies, there will be no need to take local
shareholders into account in any way.

● Earlier this rule was prescribed that the majority shareholder of at least 51% would be
subdued by the local shareholder only.

● It has been determined by the Limited Liability Company that now multiple shareholders will also be able to contribute here, and will be able to work as a single entity.

● After 100% ownership, the cost of overrunning the company will automatically reduce the setup cost of the companies will also be greatly reduced.

Eligibility to 100% Ownership

New businesses in the UAE will be able to get 100% ownership, basically Dubai, Abu Dhabi,
and other emirates.


This changed rule under Dubai will apply to 1061 activities out of 2300 economic activities
this time, and the list of all those 1061 activities has been released by the Department of
Economic Development.


● Under this, many sectors such as trading, manufacturing, and other sectors have also been included in the list of 100% foreign ownership.
● All professional licenses will require a local agent, however the local agent will be a 0%

Abu Dhabi

At present, there are 1105 commercial and industrial activities in Abu Dhabi, 100% of which can be owned by Non-UAE National. And whatever existing companies are there, they will
also be able to put themselves under this new rule.
For this,


● These rules will not apply only for new companies.
● Rather, these rules will also apply for old companies, which have been established in the
United Arab Emirates before this rule i.e. before 1 June 2021.

Other Emirates

This idea of 100% ownership and the new law have been implemented in other Emirates as well. However, this interview had already been done in Dubai and Abu Dhabi, and its
regulation had already been established.

Now after giving it a legal form, it will be implemented more vigorously. Here every state has been instructed to honor this rule.

New rules for 100% ownership

To establish a new business, National and Abroad Entrepreneurs will not face much trouble.


At present, more than 35000 forms have been customized under this new rule in Dubai. From foreign entrepreneurs to government securities, these rules have been implemented.


Rubik Consultancy stands by your side at all times to clear any kind of confusion.


A Limited Liability Company will be able to become a single in itself even if it has multiple shareholders. This simply means that a company can have multiple shareholders if it wants. But even after all this, being a sole owner of a company will not be illegal.

Change in Old Rules

For the last time i.e. before June 1, 2021, the rules were set that if an outside company comes to do business in the United Arab Emirates, then this company is required to give 51% of its shareholding to the local Emirates National, and 49% to their mates.

Many companies were not able to establish their business well in the United Arab Emirates, because this 51% share was pricking the heart of every business owner.

But now this 51% role has been removed, and now an expat can have 100% ownership of his company on this basis.

Our Role

Rubik Consultancy is ready to serve our business owners or entrepreneurs from any part of the world for this:

● We will help you to establish the Mainland and Free Zone Companies.
● We will provide you with every concerning information regarding your company formation.
● 100% ownership is the key. We are dedicated to providing the best service.
● We protect you from being violated and these rules have already been set by the

Discuss your requirements with our experts today


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