Are you a budding entrepreneur who dreams to own a business completely in a foreign land? 10 years of visa and 100% ownership is all you need to turn your dream business into reality. Wondering how? Do continue reading.
Establishing a business in the UAE, one of the most developed countries is a dream come true. The Emirates have been constantly growing and one of the most eye-catching business destinations that grabs the attention of international investors. In the past few years, the Emirates have grabbed international businesses to a great extent. Availability of free zones has driven the investors’ decision to a great extent. Having noticed this, the Emirati government has taken a step forward to unveil multiple business sectors providing 100% ownership by the Q1 of 2019. If you have been planning to set up a business in UAE, but confused when to start with, then this is the right time to give a kick-start.
The Surprise Decision
Sultan Al Mansouri, the Minister of Economy UAE, stated that a new FDI law has been approved which will boost the capital inflows is to rise from 8% to 20% by next year. Massive growth and expansion of renewable energy, artificial intelligence, and technology will scale-up the economy and will open doors for multiple businesses in their respective domains beyond the free zones. Under the FDI law, three lists have been designed.
List 1 - Positive List (Open for FDI)
The positive list will be declared very soon by the Emirati Government so as to initiate the process of taking Emirates to the next level as a world-wide business destination.
List 2 - Negative List (Limited to National Investment)
Certain sectors that are considered that are restricted to national investments are:
- Oil exploration and production
- The investigation, security, and military services
- Banking and financial activities
- Water and Electricity
- Pilgrimage and Umrah Services
- Printing and Publishing
- Medical Retail
- Commercial Agency
- Blood Banks, Quarantines and Venom Banks
List 3 - Probable Sectors
These sectors will come into picture only at the request of local officials and Investment Committee.
While the two strong pillars Abu Dhabi and Dubai have been driving the economy on various grounds, the government is slowly turning its attention towards the other Emirates and is heading towards economic expansion. The core aim behind such a decision is to take the non-oil sectors to the next level so that the overall economy becomes less dependent on the oil sectors.
Benefits to Investors
- Full foreign ownership
- Long-term visa for business establishment
- Residency visa for 10 years for research, science, medical and technical fields
- A golden opportunity to invest in different business industries in UAE
This decision would change the overall FDI past records that have been already set in UAE. The Emirates is offering multiple doors for business freaks and foreign investors to convert their dream into reality. This is the best time for an investor to invest in UAE and avail the benefits. While proceeding towards setting up a business in Dubai or anywhere in UAE, it is recommended to have a word with a business consultant who is well-versed with the legal proceedings and company establishment framework. At Commitbiz, we take of your business establishment process. We are one of the top business consultants in UAE that helps business entities to build their foundations in different corners of the world. Our core activities include accounting, taxation, legal, visa services. Apart from that, we provide a wide range of company establishment services. Our expert team will help you to clear the establishment proceedings in a hassle-free way. To obtain the suitable license for your business, do contact us – we’d be happy to assist.
According to which law foreigners are allowed to own their business fully?
Federal Decree-Law No. 26 of 2020 amends the provisions of Federal Law No. 2 of 2015 on Commercial Companies.
Which activities are not allowed to have 100% foreign ownership?
Military, banking, insurance, re-insurance, telecommunication sectors, consultancies, etc.
What is the additional benefit of this law of foreign ownership in UAE?
The law grants flexible discretion to the concerned DED in each Emirate, and they will be able to grant exceptions in relation to the company formation which carries out projects that the authority considers significant and support value and investment to the market.
Are there any fees required for availing of full foreign ownership in Dubai?
No additional fees, no guarantee, and no capital are required.
Can a Limited Liability Company have a single owner?