How can foreign investors obtain 100% ownership or avoid a local sponsor when holding a commercial license in Dubai?
- Recent mainland law reform: The UAE amended its Commercial Companies Law to allow full foreign ownership for many commercial activities, removing the automatic requirement for an Emirati shareholder in numerous cases.
- Choose the right jurisdiction: Many investors achieve 100% control by registering in a Free Zone where full foreign ownership has long been allowed; mainland setups may now permit full ownership for eligible activities depending on the emirate and licensing rules.
- Activity-specific eligibility: Full ownership in the mainland depends on the activity and whether it’s on the UAE “strategic activities” list or subject to special approvals; some commercial activities still require additional local approvals or conditions.
- Alternative structures to avoid a sponsor: Options include forming a mainland company under the new foreign-ownership provisions, using a Free Zone company with a branch on the mainland, or appointing a registered Local Service Agent for certain license types where an ownership waiver applies.
- Practical steps investors follow: determine permitted activity and jurisdiction, check Emirate-level rules and any sector-specific approvals, prepare corporate and investor documentation, secure premises and approvals, then apply for the commercial license through the relevant authority.
Which route worked best for your commercial activity in Dubai — mainland under the new foreign-ownership rules, a Free Zone entity with a UAE branch, or another structure — and what licence or approval hurdles did you face?
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