UAE: What business activities are allowed 100% foreign ownership?all you must know

If you’re wondering what these businesses are and where to find them, here’s all you need to know.

Although earlier, based on Business Companies Act 2015Foreign shareholders are limited to owning a maximum of 49% in a limited liability company (LLC) operating as an onshore UAE business.

However, the UAE government revised the law in June last year, promulgating Decree No. (26) of 2020, amending certain provisions of Federal Law No. (2) of 2015 on commercial companies, and abolishing certain regulations for commercial companies. company requirements. According to u.ae, the official UAE information portal, has a major UAE shareholder or nominee.

This excluded companies The regulation includes those companies that have government ownership or operate in strategic sectors (such as oil exploration and drilling or desalination), or that engage in specific activities as determined by law enforcement regulations.

In addition to the specific activities listed in the law and its administrative resolutions, there are thousands of business activities that allow foreigners to take full ownership of a company. To help foreigners easily set up such a company, the local economic departments in Dubai and Abu Dhabi have published a list of these activities that will help you narrow down the exact type of business you can set up.

According to the Abu Dhabi Department of Economic Development (ADDED), more than 3,000 commercial and industrial activities have been registered for foreign individuals or companies. The Abu Dhabi Business Centre (ADBC) allows entrepreneurs to find these events through its website adbc.gov.ae. Here are the steps you need to follow:

1. Visit https://www.adbc.gov.ae/BussinessActivityInfo/BussinessActivity.aspx?culture=en

2. Click on “Business Category” and select the activity you are interested in. For example, “Advertising and Media Services”.

3. Next, select a subcategory, such as Advertising Services.

4. After selecting the category and subcategory, you will get a list of specific business activities allowed in that department.

Conversely, if you want to see a full list of business activities that allow 100% foreign ownership, you can visit the ADBC ​​website – adbc.gov.ae, click on ‘Information Services’ in the menu bar at the top of the screen and select Foreign Ownership Activities.

Next, you’ll be taken to ADDED’s file, which includes over 3,000 events available to foreign investors and entrepreneurs in Abu Dhabi.

To find out how to apply for a license once you have selected your preferred business activity, you can visit the TAMM platform, Abu Dhabi’s portal for government services.click here Learn how to complete the process of starting a business in Abu Dhabi online.

Dubai’s Department of Economy and Tourism (DET) has also published a list of more than 1,000 business activities that are permitted to be wholly foreign owned. These activities include general trade, contracting, jewellery and luxury watch trade.

The full list of activities for 100% foreign ownership can be viewed here: https://ded.ae/DED_Files/ded_other/Full_Foreign_Ownership_Activities.pdf.

DET’s online platform ‘Invest in Dubai’ allows entrepreneurs to apply for trade licenses and conduct business activities online without having to visit a government department.

Here are the industries in which you can operate a 100% foreign-owned business in Dubai:

Once logged into the Invest in Dubai platform, you can access the Emirates Pass, you will then go through a step-by-step process where you can not only select the business activity of your choice, but also build the business and obtain your trade license.To learn more, click here.

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