Can Expats Own 100% of a Company in Dubai? Here’s What You Need to Know
When it comes to business setup UAE, one of the most commonly asked questions by international entrepreneurs is: Can expats own 100% of a company in Dubai? The answer has evolved in recent years, and this article will walk you through the current regulations, options available, and benefits of full foreign ownership.
Understanding Full Foreign Ownership in Dubai
Historically, expats were required to have a local Emirati partner holding at least 51% ownership if they wanted to set up a business in Dubai’s mainland. However, recent legislative changes, particularly the UAE Commercial Companies Law, have significantly liberalized foreign ownership rules, allowing 100% expat ownership in many sectors.
Key Changes Supporting 100% Expat Ownership
As of June 2021, the UAE government permitted full foreign ownership of businesses in the mainland (onshore), removing the previous requirement for a UAE national sponsor. However, the change applies only to specific types of business activities. This regulatory shift is a game-changer for business setup UAE and makes the region more attractive for foreign investors.
For full details on business activities eligible for ownership, visit the UAE Government Portal.
Business Setup UAE: Free Zones vs Mainland
Before choosing your setup structure, it’s essential to understand the key differences between Dubai Free Zones and Mainland areas.
Mainland Company Formation
- 100% ownership is permitted in many activities.
- Can trade directly within the UAE and outside.
- Requires a physical office space in Dubai.
Free Zone Company Formation
- 100% ownership by default.
- Geared towards international business.
- Trading within the UAE requires a local distributor.
For a comparative analysis, check our article on Mainland vs Free Zone: Where to Set Up Your Company in Dubai.
Which Business Activities Are Eligible?
Although the law allows 100% foreign ownership in many sectors, certain industries still require local partnership or have additional restrictions. These are typically related to:
- Defense and military sectors
- Oil and gas exploration
- Security and investigation services
- Banking and finance
For all other commercial and industrial activities, expats can now typically start a company in UAE with complete ownership.
Benefits of 100% Expat Ownership
Having complete control over your enterprise offers undeniable advantages, especially in high-growth markets like Dubai. Here are some key benefits:
- Total control over business decisions
- Full profit retention
- Streamlined administration without the need for local sponsor agreements
- Enhanced investor confidence
- Greater agility in international expansion
Steps to Achieve 100% Ownership
- Identify the business activity: Ensure it qualifies for complete foreign ownership.
- Choose business location: Mainland vs Free Zone.
- Reserve a trade name and acquire initial approval from DED or Free Zone Authority.
- Submit documents and draft the MOA (Memorandum of Association).
- Obtain a license based on the nature of your business.
Need help navigating documentation? Check our guide on Required Documents for Registering a Business in Dubai.
What About Local Agents and Service Providers?
Although 100% ownership is permitted in several sectors, some professional service entities require a local service agent. These agents do not own a stake in your business but assist with regulatory compliance. Understanding this distinction is vital for accurate business setup in UAE.
Costs Associated with Setup
The expenses involved in establishing a fully expat-owned company vary depending on the business activity, jurisdiction (free zone or mainland), and office space. Key cost elements include:
- Business license fees
- Office rent
- Legal and government documentation
- Visa processing
For a complete analysis, review our article on Cost Breakdown: How Much Does it Cost to Open a Company in Dubai.
Best Sectors for 100% Foreign-Owned Companies
Some of the most promising sectors for foreign-owned businesses in Dubai include:
- Technology services and startups
- E-commerce and online retail
- Import/Export trading
- Real estate brokerage
- Consultancy services
Consider reading our blog on How to Obtain an E-Commerce License for Your Online Company in Dubai.
Legal Framework and Compliance
To ensure smooth business operations, it is essential to remain up-to-date with the UAE’s evolving regulations. This includes:
- Annual license renewals
- Timely filing of VAT returns
- Compliance with labor laws
For details on renewals and legal obligations, check our overview on Mainland vs Free Zone Trade License Renewal Differences in Dubai.
Conclusion: Is 100% Ownership Worth It?
In the ever-expanding landscape of business setup UAE, the ability for expats to own 100% of their company marks a significant step towards a more inclusive and investor-friendly environment. With the right planning, business activity, and guidance, full ownership is not just possible — it’s practical and profitable.
Whether you’re planning to enter the UAE market through a Free Zone or opt for the dynamism of the mainland, understanding the new laws and how they apply to your business will prepare you for successful establishment and growth.
Need expert advice or end-to-end assistance on setting up your business in Dubai? Contact specialists who can guide your journey through accurate compliance and strategic decisions.
