• A limited liability company can be formed by a minimum of two and a maximum of 50 people whose liability is limited to their shares in the company’s capital. 
• There is no minimum capital requirement. While the foreign investor’s share in the company should be 49% and the local sponsor 51%, the profit and loss distribution can be prescribed. 
• Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party. 
• The local sponsor MAY NOT BE involved in the management team but will be a “nominal” shareholder between him and the foreign investor. There is a mutual agreement between sponsor and investor, declaring that the local sponsor does not have a right to the company’s income, exploitation, and management. He will not hold control over the company. 

The investor will have visas for employees and a corporate bank account. An investor must obtain a permit from the UAE Chamber of Commerce. The investor will hold 100% ownership, and the UAE national will be the local agent for a branch. 

If an investor holds his assets in free economic zone territory, but he wants to work for the domestic market, here is an option. 

He can get a license from the Dubai Department of Economic Development for most of the activities: commercial, productive, and service. 

Includes the field of consulting, education, medicine, etc. In this type of license, UAE citizens carry agent roles, whereas a foreign investor is an owner and manager. Professional companies in Dubai provide foreign investors with 100% ownership and management of the business in the UAE. 

Civil company is a company in Dubai, established as a partnership with two or more partners as natural or legal persons, to share professional services in the domestic market of Dubai and UAE. A local citizen of the UAE serves in such companies as a local agent, representing it. He can process resident working visas or renewal of the license.

The local agent does not get involved in the company’s operations or its financial affairs. He also does not bear any responsibility for the company’s activities. 

Advantages of registering a company in Free Economic Zones:

• 100% of Return on investments and tax-free environment

• 100% ownership of the company. No local sponsor is required

• 100% absence of import and export duties

• Resident visas and residence permits for the founders and staff of the company

• Unlimited use of banking services (credit cards, check books, interest-free cash of funds from current accounts, etc.). 

An offshore company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership. Registration of UAE offshore company offers the advantages: 

An investor does not require UAE residency, as well as a local sponsor. He is eligible to own 100% of shares

• Affordable costs of banking services and transactions

• No income tax

• No annual audit

• Possibility to buy real property in the UAE (JAFZA offshore only)

• No limits on capital and profit exports

• Confidentiality: the UAE is not a member of The Organization for Economic Cooperation and Development, so the government is not obliged to exchange information with other countries. The public state registers do not disclose any information about company directors and shareholders, even in case of an official inquiry

• Reasonable registration price

• No requirements to charter capital size. 

An offshore company serves as a storage platform for all shareholder holdings. Offshore companies in the UAE are administered by the three main offshore jurisdictions of the UAE: 

• Ajman offshore

• RAKICC offshore

• JAFZA offshore

There has been a landmark change to the UAE Commercial Companies Law which allows 100% foreign ownership for mainland companies. This is expected to provide a further boost to the UAE economy. 

Federal Law No (2) of 2015 on Commercial Companies (“Companies Law”) was amended by virtue of Federal Decree Law no. 26 of 2020 which made changes to some provisions of the Companies Law (“Decree Law”) around September 2020. 

The Decree Law introduced reforms which were eagerly awaited by the expatriate business community. Those amendments, particularly, included the removal of the requirement: 

• For a company to be owned 51% by UAE national(s) as per Article 10 of the Commercial Companies Law. This was effective from 01 June 2021; and 
• To appoint a UAE national local agent for branches of foreign companies as per Article 329 of Companies Law. This was effective from 01 April 2021.