With the introduction of policy adjustments and changes in key principles, the UAE has constantly been evolving. The government displayed a great economic promise by welcoming investors and entrepreneurs worldwide with a red carpet welcome. Another recent decision in this vein is the new law permitting ex-pat businesspeople to own 100% of their property in Dubai Mainland.
This new legislation eliminates the need for a local Emirati sponsor when forming a corporation in Dubai. The decision to allow enterprises in Dubai to have 100 percent foreign ownership will undoubtedly result in an influx of expatriate businesspeople. Providing the country with a stronger financial position and spectacular growth than previously.
Strategies To Get Ownership In Dubai
If you want to create a low cost business setup in Dubai, you must own the land. The government is making business operations easier than ever before. The following are the important points in Dubai’s new 100 percent ownership amendment:
- The number of shares offered through an IPO has increased from 30% to 70%.
- Local governments have the authority to provide specific directions, issue approvals, and regulate the formalities of company creation in their domains.
- Instead of holding actual meetings, businesses can hold online meetings and conferences. Electronic voting is available during the company’s Annual General Meeting, making it easier for expatriate owners to participate in AGMs without going to Dubai.
- In the Dubai Mainland jurisdiction, 100 percent foreign ownership is permitted, subject to certain limits. Previously, this was exclusively available to Free Zone businesses.
- It is possible to register a company in Dubai without native Emirati shareholders or service agents. As a result, the problem of locating a trustworthy Emirati partner for establishing a firm in Dubai Mainland is eliminated.
- Meetings can be presided over by ex-pats without the need for an Emirati to do so.
- It’s worth noting that executive officers or business chairs can be fired if they don’t follow the rules or don’t retain the dignity that the position demands.
However, the progressive regime’s decision to allow 100 percent foreign ownership in Dubai Mainland enterprises is a welcome step. It would substantially aid the country’s development and economic strength.
What has changed as a result of the amendment?
In simple terms, the new regulation eliminates the need for a local sponsor when starting a firm. Many companies with 100% foreign ownership will set up shop in Dubai now that the new regulation is in place. The law will take effect on June 1, 2021. Nonetheless, the full implementation will take place only in the fourth quarter of 2021.
The documentation aspect, as well as the inclusion of relevant corrections in the system and the risk of teething issues, as well as ambiguities with the new regulation, are all factors to consider.
In Dubai Mainland, a foreign national, regardless of his or her country of origin, can own 100% of the company’s shares. Companies in the telecommunications, oil, gas, and utility sectors would not be eligible for 100 percent foreign ownership in Dubai.