It’s the first question everyone asks – can I own 100% of my Dubai business? There’s some confusion around this, but the simple answer is as follows: If you’re setting up in a free zone, yes you can own 100% of your Dubai business. Meanwhile, if you’re setting up on the Dubai mainland you can now, with just a small number of exceptions, also own 100% of your Dubai business. So it’s good news all round.
Because of this, the Dubai foreign investor scene has really transformed over the past few years and it’s easier than ever before for business owners from abroad to gain a proper presence in the UAE.
What turned it around for mainland companies was the Commercial Companies Law that went into effect back in 2020 which ended the long-standing requirement that foreign companies setting up on the mainland must have a local Emirati agent or sponsor. Of course this really opened the gates for foreign entrepreneurs to have full control over their company, making Dubai an even more attractive business destination.
So in this article, we will cover all the benefits of 100% foreign ownership in Dubai, how it impacts business activities, and the key advantages it offers to global entrepreneurs. From enhanced decision-making control to better profit retention, being able to own 100% of your company in Dubai offers a number of reasons to invest.
So let’s get started.
Can you own 100% of your business in Dubai?
As mentioned, in free zones foreign nationals can own 100% of their company in Dubai. This has been in place for a long time. More recently, there was a law change which meant that
foreign companies setting up on the mainland were obliged to partner with a local Emirati shareholder or agent to conduct business within the UAE. That no longer exists except in a few key instances.
Benefits of owning 100% of your business in Dubai
Let’s look at the benefits of owning 100% of your Dubai business.
- You have full control: Foreign investors have total control over how their business is managed without the need for a local partner or shareholder. This mean you have the freedom to make decisions that are aligned with your vision and goals. Without having to get approval from a local partner or stakeholder, you can make decisions faster and in a more efficient manner, allowing your business to stay agile and react to changing markets.
- Better decision-making: Now you don’t have to use a local partner or third party, you can make business decisions more rapidly. This is really valuable in dynamic markets, where the ability to change direction rapidly can provide you with a real competitive edge. You are also able to directly own and manage intellectual property, a key asset for tech, research, and other firms. You can decide on IP protection or commercialisation without intervention by someone from outside. Also, operating independently without the need for a local partner reduces the likelihood of conflicts over business plans or even profits. In short, you get peace of mind.
- Holding on to profit: Of course one of the most important advantages of 100% foreign ownership is that 100% of your profits can be repatriated outside the UAE. This means that there are no restrictions on transferring earnings to your home country, which makes the UAE a great destination for foreign investors. Without a local sponsor, you are not required to give profits to a third party, so you get higher retention rates on profits and more control over your finances. You can then reinvest the retained profits into growing your business.
- Attracting global investment: The 100% foreign ownership option boosts the UAE’s global reputation as a business-friendly destination for foreign entrepreneurs. It’s common sense that investors prefer to invest in nations that permit them complete ownership and control of their businesses. The location of the UAE between Europe, Asia, and Africa makes it a prime location for regional trade and investment and full ownership offers foreign investors a secure platform to access this lucrative market with total control.
- Free zones & other markets: The majority of free zones in the UAE have adopted policies that allow 100% foreign ownership. They offer several advantages such as tax exemption and simple visa procedures making them a great option for foreign businesses. While 100% foreign ownership is generally allowed in free zones, the UAE’s trend towards granting full foreign ownership of mainland companies in specific sectors (as part of its economic diversification strategy in the longer term) means that foreign investors can now access the local market without having to employ a local partner.
- Stability: The UAE offers a stable political and economic environment with legal protection to foreign investors. Full ownership rights are legally guaranteed, so the country is a secure place for foreign enterprises to invest. The UAE legal framework facilitates foreign investments through contracts that are enforceable under the UAE legal system. Being able to function entirely independently provides investors with the assurance that their business interests will be safeguarded.
Types of business licenses available
Let’s now have a look at the main types of business licenses available in Dubai.
- Commercial: These are given to firms dealing in general trading and contracting. The license allows UAE-based companies to operate in the UAE as well as internationally. Companies needing commercial business licenses in Dubai are generally those dealing in real estate, healthcare, transport, publishing, media, oil and gas, and so on. There are a number of areas, so if you think your activity might fit into this category, be sure to consult a specialist who can guide you.
- Agricultural: These are suitable if your enterprise uses land for farming crops, keeping livestock, maintaining fish farms, constructing greenhouses or trading in pesticides, or many other related areas. If this is the case, then you will need to get an agricultural business license in Dubai.
- Craftsmanship: This type of license is for any person who works independently and does a particular trade for profit. This can include carpenters, blacksmiths, electricians as well as plumbers and other related fields.
- Professional: Any individual or company that wants to make a profit by using the intellectual skills of individuals has to get a professional business license in Dubai. Businesses most often falling under the professional license in Dubai would be involved in insurance, consultancy services, IT, tax, and many more.
- Industrial: These are required for manufacturing firms. To get a manufacturing license you should have a physical or bricks-and-mortar office in the UAE. Activities that would require an industrial license would include large-scale manufacturers of items such as dairy products, bird and animal feed, meat products, carpets and many other areas.
- Tourism: If your business is involved in tourism then this is the type of business license you would need in Dubai. Areas might include tourist agencies, hotels, cruise liners, floating restaurants, tourist camps and other similar businesses.
About Worldwide Formations
Worldwide Formations has been a go-to source of corporate advisory services for over 12 years, providing solutions for entrepreneurs and companies seeking to set up or expand in the UAE. With experience in every facet of business setup in Dubai and the broader UAE, we are an officially registered agent in all major jurisdictions, including mainland and free zones in the UAE. Our clients come from more than 90 countries, and we offer bespoke services addressing operational, financial, and legal requirements in a broad range of industries.
From trade licenses to company registration, the processing of visas and continued compliance, we cover every step required for an efficient setup. Get started with Worldwide Formations today on the path to success. Contact us today.
