Can You Own 100% of a Company in the UAE?

The UAE has positioned itself as one of the fastest-growing business hubs in the world. Strong infrastructure, global connectivity, and pro-investor reforms have created a highly competitive market for international companies.

A major turning point came in June 2021, when new corporate law reforms allowed foreign investors to hold 100% company ownership in many mainland activities. Previously, international businesses could:

• Own only up to 49%
• 51% had to remain with a UAE national

This rule no longer applies in most sectors, giving global investors greater flexibility and control.

Today, mainland companies across several industries can enjoy full foreign ownership, subject to the “positive list” of activities approved by each emirate. For example, Dubai permits 100% ownership in more than 1,000 commercial and industrial activities. Strategic sectors like oil and gas, defense, and utilities remain exceptions. 

Meanwhile, UAE Free Zones have long offered 100% ownership, along with benefits such as zero corporate tax and full profit repatriation. Entrepreneurs exploring how to register a freezone company in Dubai often find the process straightforward, thanks to simplified licensing and investor-friendly policies.

These reforms have streamlined compliance and setup processes. Investors now use clear company ownership documents for faster licensing, transfers, and filings. The result is a business environment that offers both control and transparency. This makes the UAE one of the most open and investor-friendly destinations globally.

Some key benefits of 100% foreign ownership for investors are:

• Complete Business Control: All operational and strategic decisions remain fully with the foreign investor, without local partner involvement.
• Full Profit Retention: 100% of business earnings stay with the company owner, with no profit-sharing obligations.
• Unrestricted Market Access: Companies in approved business activities can trade across the UAE mainland without requiring a local sponsor.
• Boosted Investor Confidence: Global reforms have enhanced trust, with the UAE attracting AED 167.6 billion in Foreign Direct Investment (FDI) in 2024.
• Expanding Sector Opportunities: Investors can tap into rising opportunities in flourishing sectors like advanced technology, smart manufacturing, clean energy, and professional services.
• Streamlined Business Setup: Simplified processes for licensing, company ownership documents, and compliance make incorporation more efficient.

The UAE has introduced several reforms that make doing business easier and more transparent. Some key updates include:

1. What Changed?

• The UAE removed the rule that required Emiratis to hold majority ownership in most mainland businesses. This change came under Federal Decree-Law No. 26 of 2020 and Federal Decree-Law No. 32 of 2021. It became effective in January 2022.
• Each emirate maintains its own “positive list” of activities open to full foreign ownership. For instance, Abu Dhabi allows full ownership in 1,105 activities.

2. Strengthened Corporate Governance and Investor Protection 

The New Companies Law became effective in January 2022. 

• It made the foreign ownership reforms official. 
• It improved governance and gave better protection to minority shareholders. 
• It introduced new corporate structures such as Special Purpose Acquisition. Companies (SPACs) and Special Purpose Vehicles (SPVs).

3. Updated Documentation and Transparency Requirements

• Authorities now require businesses to file accurate company ownership documents.
• Submissions may include a declaration of company ownership sample to confirm shareholder details for licensing and renewals.

4. Improved Business Structuring Flexibility

The New Companies Law introduced easier pathways for restructuring, including: 

• Converting Limited Liability Companies (LLCs) into Public Joint Stock Companies (PJSCs)
• Splitting companies
• Clearer provisions for share valuation and capital changes

5. Better Dispute Resolution and Compliance Frameworks

• Streamlined dispute resolution and arbitration procedures strengthen investor confidence.
• Foreign investors gain more legal clarity on ownership stake in a company.

The UAE now allows foreign investors to fully own companies in most sectors. Whether you choose a Mainland or Free Zone business setup, you must follow a clear process. Having the right company ownership information helps you avoid delays. 

Here’s a step-by-step guide to help you set up a 100% foreign-owned company in the UAE:

Step 1: Select the Jurisdiction

Decide if you want a Mainland, Free Zone, or Offshore company.

While Free Zones allow 100% company ownership in all sectors, the Mainland allows full ownership in most activities; some are still restricted.

Step 2: Choose a Business Activity

• Pick a business activity from the list approved by the UAE authorities.
• Your activity will decide whether you need a commercial, industrial, or professional license.
• Some activities in the Mainland, such as finance and banking and healthcare, and clinics, may still require government approval.

Step 3: Reserve a Trade Name

• Submit 3-4 name trade name options to the Department of Economic Development (DED) or the Free Zone authority.
• Make sure the name does not violate UAE naming rules. Do not use offensive terms or religious references.
• Pay the name reservation fee to secure your chosen trade name.

Step 4: Prepare Company Ownership Documents

• Submit passport copies of all shareholders and directors.
• Prepare a signed letter of ownership of the company or a shareholding declaration.
• Collect any additional approvals if your business activity needs them (e.g., healthcare, finance).

Step 5: Apply for Initial Approval

• Apply for initial approval online through DED (Mainland) or the Free Zone authority.
• This confirms that the government has no objection to your business setup.
• Approval allows you to continue with documentation and licensing.

Step 6: Draft and Sign MoA

• Outline shareholding details, voting rights, and company objectives.
• Free Zones provide a ready-made Memorandum of Association (MoA) format.
• In the Mainland, you may need to notarize it with a UAE notary public. While LLC companies use an MoA, Sole Establishments or Civil Companies use Local Service Agent (LSA) agreements.

Step 7: Get Office Space or Virtual Address

• Mainland companies must lease a physical office.
• Free Zones allow virtual offices, flexi-desks, or coworking spaces.
• A tenancy contract (Ejari in Dubai) is required for Mainland offices.

Step 8: Apply for Final License

• Submit all documents to the authority.
• Pay the licensing and registration fees.
• Receive your business license to start operations.

Step 9: Open a Bank Account

• Choose a UAE-based bank that matches your business needs.
• Provide company license, MoA, and shareholder documents.
• Complete KYC (Know Your Customer) compliance for account activation.

Step 10: Apply for Visas

• Use your trade license to apply for an investor visa.
• You can also apply for employee visas, depending on office space.
• Free Zones have visa quotas, while the Mainland depends on office size.

When planning a UAE Mainland company setup, it is important to know the ownership rules in different jurisdictions. Mainland, Free Zone, and Offshore companies each have specific regulations that determine how much foreign investors can own. Understanding these rules helps you make the right choice for your business.

When considering company formation in Dubai, it is essential to understand the compliance requirements and associated costs. These factors ensure your business operates legally and efficiently within the UAE’s regulatory framework.

Note: These costs are approximate and can vary depending on the Mainland or Free Zone jurisdiction and the nature of your business.

While 100% Dubai company ownership opens big opportunities, investors still face some challenges, such as:

• Sector Restrictions: Some industries, like oil and gas, defense, and utilities, remain closed to full foreign ownership. Investors must check the “positive list” of approved activities in each emirate.
• Compliance with Local Regulations: Companies must still follow labor laws, VAT, and corporate governance rules. Missing deadlines or documents can delay operations.
• Licensing Differences Across Emirates: Rules for Mainland licensing may vary in Dubai, Abu Dhabi, or Sharjah. Investors need clarity before finalizing business plans.
• Operational Costs: Office space, visa sponsorships, and government fees can raise costs, especially for startups entering the UAE for the first time.
• Document Clarity: Preparing company ownership documents and filings in line with UAE regulations is critical. Any errors may cause licensing or renewal delays.
• Banking and Finance: Some investors face challenges in opening corporate bank accounts due to strict compliance checks.

These hurdles highlight the need for careful planning and legal guidance.

The UAE’s corporate law reforms have significantly transformed its business landscape, making 100% foreign ownership a reality in most sectors. This shift gives global investors more control, profit retention, and easier access to opportunities in Dubai and beyond. 

However, preparing accurate documents, such as the declaration of ownership of a company, remains vital to avoid delays and ensure compliance. With the right guidance, investors can take full advantage of these reforms and expand confidently in one of the world’s most dynamic markets.