100% Foreign Ownership in Dubai, UAE for LLC Companies
That’s right! Effective June 1, 2021, foreign nationals are permitted to fully own LLC companies based on the Dubai mainland due to Federal Decree-Law No. 26 of 2020. This change was done to meet the require of a UAE national sponsor, and gives foreign businessmen full control over their company setup in Dubai. If you plan on starting a trading LLC, tech startup, or consultancy business, this guide covers everything you need to know, including processes, costs, benefits, and future changes in 2025. I will guide you throughout the entire journey, provide useful advice, and address your most important queries so that you can confidently set up your business in the UAE.
What Does 100% Foreign Ownership Mean for You?
Now think about having each share of your LLC firm located in Dubai mainland with no need to share control with a local sponsor. This is what 100% foreign ownership offers. This was introduced in 2021 via Federal Decree-Law No. 26 of 2020. This change allows foreigners like you to own businesses in more than one thousand economic sectors, including but not limited to, renewable energy or e-commerce transport. No longer are you required to endure split profit arrangements or untangling complicated UAE national agent contracts. This is a welcoming economy, meaning you can start a trading LLC, a tech startup, or a professional services firm and hold full controlling interest. In this guide, I will explain how this works, what it costs, and why the best time to invest is in 2025.
Why the UAE Embraced Full Foreign Ownership
The UAE did not wake up and decide to go for 100% foreign ownership. It was an intentional move to position the country as an international business center. Let’s look at why this is done and the value it poses to you.
Economic Goals and Global Ambition
Led by the UAE Cabinet and Sheikh Mohammed bin Rashid Al Maktoum, the UAE government set this policy to:
- Increase foreign direct investment (FDI) by eliminating ownership restrictions.
- Encourage diversification beyond oil with green technology and biotechnology research.
- Support the vision of 50 years and prepare for post-COVID recovery.
- Compete with Singapore and Hong Kong as investment centers.
- Attract multinational corporations and cultivate a startup ecosystem.
This is aligned with the Dubai Economic Agenda D33, which aims to double Dubai’s economy by 2033 through cross-border trade, expansion, and inflow of foreign capital.
Key Legal Reforms Driving Change
The shift began with the Foreign Direct Investment Law (“FL 19 OF 2018”), which came up with a Positive List of sectors open for 100% foreign ownership. UAE Commercial Companies Law (Federal Law No. 2/2015) changes brought in in 2020 included:
- Abolishment of 51% local ownership for LLC companies.
- Removal of the prerequisite of a regional national agent for foreign branches.
- Eligibility of expatriates for C-level board positions, electronic meeting transactions, and serving on boards.
- Increasing the IPO UAE limits to 70% for joint stock companies.
These reforms have been implemented within the framework of the Ministry of Economy and Department of Economic Development (DED), which gives much more company founding flexibility in the UAE, and contributes to the foreign investment attractiveness of the country.
How to Launch an LLC with 100% Ownership in Dubai
Setting up an LLC in Dubai with full foreign ownership is simpler than you think. Here is a comprehensive guide to getting your business set up in Dubai.
To register your company in Dubai, complete the following steps:
Step 1: Choose Your Business Activity:
Select from the Positive List (trading LLC, consultancy business, biotechnology research). Get confirmation of eligibility from DED.
Step 2: Select a Company Name:
Register your name with DED following the UAE guidelines: no religious or offensive terms.
Step 3: Prepare Incorporation Documents:
Write your Memorandum of Association (MOA) and list the shareholders.
Step 4: Apply for a License:
Send application to DED for approval.
Step 5: Set Up a Corporate Bank Account:
Register a bank account to carry out corporate transactions.
Step 6: Secure an Investor Visa:
Apply for a 2-year investor visa or a 10-year UAE Golden Visa if your net worth is over AED 2 million.
Using PRO services can make this process more efficient.
Understanding Costs and Budgeting
Costs associated with business setup in the UAE include:
- Professional Services License: From AED 8,000.
- Commercial License: From AED 14,000.
- License Amendment: From AED 5,000 to remove local sponsor.
- Additional Expenses: Office rental costs between AED 10,000 to 50,000 yearly, visa processing fees AED 3,000 to 5,000 each, along with fees for business establishment consultants.
Dubai does not require a minimum capital investment for full company ownership, unlike other emirates, such as Abu Dhabi, which mandates $4 million for some industries. Operating without corporate income tax and having a certificate for tax residency is advantageous and reduces operational costs by avoiding double taxation.
Handling Documentation and Approvals
Documents required for the registration form a company include:
- Copies of passports from all shareholders.
- Amendments to MOA (sponsors for existing businesses will need to be removed).
- Description of business activity.
- Address verification for the investor visa applications.
- DED pre-approval form.
For LLCs, to remove a UAE national sponsor, they must provide signed consent or legal arbitration. Compliance completion for complex regulatory requirements is possible through the Use of PRO Services, which guarantees efficient due diligence with the DED.
Comparing Dubai Mainland vs. Free Zones
In some instances, you may ask yourself whether to set up in Dubai mainland or in a free zone. These Free zones and the Dubai mainland differ since both provide full 100% foreign ownership. Both of them serve different needs. Let’s break it down.
Why Choose the Mainland for Your LLC?
Mainland businesses shine because they:
Business advantages of the mainland permit trading all over the UAE, including government contracting.
- Removal of local ownership regulations enables him or her to obtain full equity shares, erasing fully local ownership restrictions.
- Facilitates a wide range of economic activities from retail to hospitality and even food services.
- Employed with convenient freedom to operate anywhere in the UAE.
- This is perfect for trading companies or businesses targeting local markets.
Free Zone Perks and Limitations
Providers such as Dubai International Financial Centre and Abu Dhabi Global Market free zones offer:
- Operations untaxed and absence of customs duties.
- Common-law frameworks are beneficial for financial services and tech startups.
- Streamlined company registration and visa processes.
- Access to venture capital ecosystems.
But, free zones can’t trade directly on the mainland without agents, limiting market access.
Which Option Suits Your Business Goals?
| Feature | Mainland | Free Zone |
| Ownership | 100% foreign ownership | 100% foreign ownership |
| Market Access | Full UAE market, government projects | Limited to free zone or via agents |
| Costs | AED 8,000–14,000 (license) | Lower license fees, higher rent |
| Legal System | UAE Commercial Companies Law | Common-law (e.g., DIFC, ADGM) |
| Visa Options | Flexible, including Golden Visa | Limited visa quotas |
Choose mainland for market freedom or free zones for tax-free benefits. A business setup consultant in Dubai can tailor advice to your goals.
Hot Sectors for 100% Foreign Ownership in 2025
Among other economic activities, listed under the Positive List, there are 1,065 that stand out. Dubai is set to open up new sectors in the coming years. Let’s analyze three that will be prominent in 2025 and beyond.
Green Energy: Powering the Future
Because of Dubai’s drive for sustainability, renewable energy is now a big focus:
- UAE’s solar panels and hybrid power plants aid in reaching net-zero ambitions.
- The UAE’s government and international investors are providing funds for sustainable projects.
- Cross-border sustainable project investments are easily accessible and profitable.
Tech Innovation: The New Age of Biotech and Digital Markets
The technology industry is booming:
- Healthcare innovation is fueled by biotechnology research.
- Dubai’s booming digital economy is benefiting from e-commerce, transport, and online marketplaces.
- Tech hubs are being backed by venture capital due to the growing startup culture.
Logistics and Trade: The Heart of Connecting Globally
Trading LLCs will benefit greatly from Dubai’s strategic positioning:
- Logistics and supply chain operations take advantage of Dubai’s place as a trade hub.
- There is a growing need for cold storage for pharmaceuticals.
- Retail businesses targeting the GCC markets will find the region highly promising.
- These sectors align with the Dubai Economic Agenda D33, which works towards enhancing economic growth.
Pros and Cons of Full Ownership in Dubai
Complete foreign ownership provides convenience but has its downsides, too. Let’s consider both sides of the story.
Pros for Business Owners:
- Total control over their business means decision-making freedom.
- Decisions regarding profit allocation can be kept under sole ownership.
- Market Access: Trade across all emirates of the UAE and obtain government contracts.
- Tax Benefits: Obtain residency certificates and enjoy a tax-free environment.
- Residency Options: Qualify for a 2-year investor visa or a 10-year UAE golden visa.
These benefits make Dubai ideal for international business.
Challenges to Plan For
- Restricted Sectors: Special approvals are required for strategic impact areas such as telecommunications.
- Emirate Differences: Dubai, Abu Dhabi, and Sharjah have different rules.
- Legal Issues: Removing a local sponsor may require arbitration.
- Initial Expenses: Office rental and visa costs can be high.
A business setup consultant can assist you with these obstacles.
2025 Trends: What’s Next for Foreign Investors?
The foreign investor-friendly policy is seeing further enhancements in 2025:
Corporate Tax and Policy Updates
- UAE Corporate Tax: Adding AED 375,000 profit cuts free zone business stagnation; a 9% tax on profits over AED 375,000 applies to mainland businesses, but free zones may remain tax-free for qualifying activities as per OECD Pillar Two.
- Digital Approvals: DED and the Ministry of Economy are automating functions with online systems.
- Golden Visa Expansion: Increasing accessibility by lowering investment thresholds for the 10-year visa.
Emerging Opportunities
Anticipate new additions to the Positive List, such as AI and advanced manufacturing.
- FDI Growth: According to the Dubai Economic Agenda D33, the UAE intends to increase foreign direct investment to $15 billion by 2030.
- Startup Support: Focused new venture capital funds for emerging technology and bioscience companies.
- Because of these, 2025 is a fantastic time for company establishment in the UAE.
Emirate-by-Emirate: How Rules Differ
While the UAE allows 100% foreign ownership, other emirates have their own unique rules.
- Dubai: More than 1,000 eligible activities, with DED granting rapid approvals for trading LLCs and professional service companies.
- Abu Dhabi has higher minimum share capital requirements ($2 million to $4 million in some industries) and five industry specialists for tech companies.
- Sharjah: Greater than 1000-plus activities like Dubai, but more streamlined through SEDD.
- Ajman and Ras Al Khaimah: Great for small and medium enterprises with more relaxed regulations and lower prices.
To assist you with navigating the rules of each emirate, contact a business setup consultant in Dubai.
FAQs: Your Top Questions Answered
Q1: What does 100% foreign ownership in Dubai mean?
It allows foreign investors to own 100% of an LLC company in Dubai mainland without a UAE national sponsor, per Federal Decree-Law No. 26 of 2020.
Q2: How much does it cost to start an LLC in Dubai?
Costs range from AED 8,000 (professional license) to AED 14,000 (commercial license), plus visa and office fees.
Q3: Can I convert my existing LLC to 100% ownership?
Yes, amend your MOA with DED approval for AED 5,000, assuming the local sponsor agrees.
Q4: Which sectors are restricted for 100% ownership?
Seven strategic sectors (e.g., defense, telecommunications) require partial local ownership or approvals.
Q5: How do I get a UAE Golden Visa?
Investors with a net worth of over AED 2 million qualify for a 10-year UAE Golden Visa after company registration.
Q6: How do I comply with UAE regulations?
Work with PRO services to ensure regulatory compliance and DED approvals.
Q7: What are the benefits of 100% ownership?
You gain full control, keep all profits, and access UAE markets in a tax-free environment.
Q8: How does the 2025 corporate tax affect LLCs?
A 9% tax applies to profits over AED 375,000, but tax residency certificates avoid double taxation.
Q9: How to structure 100% foreign ownership in Dubai?
Use PRO services, draft an MOA, and secure DED approval.
Q10: Why does the UAE allow 100% ownership?
To attract FDI and boost economic growth.
Final Thoughts: Why Dubai in 2025?
100% foreign ownership in Dubai has opened doors for foreign investors, making it easier to own a business in Dubai without a local sponsor. From green technology to logistics, the Positive List offers endless possibilities. With tax-free benefits, streamlined licensing, and the UAE Golden Visa, Dubai is a top choice for global investment in 2025. Whether you’re starting fresh or amending an existing LLC, now’s the time to act. Partner with a business setup consultant and make Dubai your launchpad for international business success.
