If you’re an entrepreneur looking to expand your business internationally, there’s a chance that at some point, you’ve considered the UAE. With incredible support systems in place for business owners, a growing community of international entrepreneurs, and a thriving economy, the UAE seems to be an ideal choice for many.

But there is a common question that arises among clients interested in the region: “Can I own 100% of my company in the UAE as a foreigner?”

The short answer is yes. But there are several important factors to consider.

The UAE is more welcoming than ever to foreign-owned businesses, but there are still limitations on foreign ownership. In this article, we’ll break down the two main options available to investors, and help you decide if opening a business in the UAE might be for you.

Understanding UAE Foreign Ownership

For many years, full UAE business foreign ownership was restricted. Foreign investors had to partner with a local, Emirati sponsor. The sponsor was required to hold 51% of the company shares at all times. This deterred many investors from setting up their business in the region.

But in recent years, these restrictions have been getting more and more relaxed. A network of free-trade zones exists across the UAE, offering full ownership and other attractive benefits to foreign investors. In addition to these free zones, many sectors on the mainland also allow foreign ownership.

So what options do foreign owners and investors have when it comes to setting up their UAE business?

Operating In A Free-Trade Zone 

The most straightforward way for foreigners to fully own a company in the UAE is through one of the country’s free-trade zones (FTZs). There are currently over 40 free zones across the UAE. These zones are governed by special regulations, and offer various tax concessions and customs benefits, in addition to the opportunity for 100% foreign business ownership.

What are the key benefits of free zones in the UAE? 

• 100% foreign ownership of businesses
• 0% corporate and personal income tax
• Customs duty exemptions
• Full repatriation of profits and capital

Some of the most popular free zones include:

• Meydan Free Zone

• DMCC 

• DIFC

• RAKEZ

• IFZA

Free zones are a good choice for online businesses, especially ones operating on international markets. They can be a great stepping stone into the UAE if a business doesn’t need a physical presence (like a storefront or studio space) right away.

At Credibility Corporate Group, we have strong partnerships with some of the UAE’s most efficient and popular free zones. We collaborate with free zone authorities before, during, and after the company set-up process, ensuring long-term success and positive collaboration between all partners.

Opening a Mainland Company 

In recent steps taken away from the old 49/51 % ownership requirement, 100% foreign ownership is now allowed for mainland companies in several industries.

As of June 2021, the UAE allows full foreign ownership for businesses in most sectors. A few strategic activities, such as military defense or oil and gas, are still restricted from foreigners. But many of the more common industries, such as retail, food and beverage, and entertainment, are now open for foreigners too.

With a mainland company, your business is eligible to operate across the UAE, with no restrictions on office location. Company structuring is also more flexible.

For investors wondering if their business qualifies for full ownership, we offer strategic consultancy sessions with our legal and tax experts. We can help you navigate the rules and regulations specific to the Emirates, and decide on the most effective path for your business.

Free Zone VS Mainland Companies

We’ve collected the key differences between free zone and mainland companies in the following table:

The information provided here is subject to change. We highly recommend consulting with local authorities or a UAE-based consulting company before making any business decisions

As a comprehensive corporate service provider with years of experience in the region, we specialize in helping foreign entrepreneurs set up and expand their UAE business. We walk clients through the business setup process, ensuring that their activities are compliant and efficient.

Our team is proudly partnered with some of the UAE’s leading free zones, including Meydan, Rakez, IFZA, and many more. We guide our clients in choosing the best free zone for their business and support their business activities through a range of services.

Conclusion

As a foreigner, you can own 100% of your company in the UAE.

Free zones offer the easiest route to ownership, especially for startups and digital service providers. Mainland setups also offer the potential for full foreign ownership, but not in all sectors.

Choosing the right structure is critical to opening your business in the UAE. We recommend consulting with a local corporate service provider to ensure that your plans align with legal frameworks and make sense for your business.

If you’d like to explore business opportunities in the UAE, we invite you to get in touch with us. Our team is ready to support entrepreneurs in bringing their business visions to life in the UAE.