Our Correspondent
With effect from June 1, 2021, foreign investors and entrepreneurs will be able to establish and fully own onshore companies, the UAE Ministry of Economy announced.
The UAE government recently adopted an amendment to the Commercial Companies Law allowing 100 percent foreign ownership of companies.
Abdulla bin Touq Al Marri, Minister of Economy, said: “The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government efforts to facilitate doing business.”
Bin Touq added that the amendments introduced by the new Commercial Companies Law will boost the UAE’s appeal as an attractive destination for both foreign investors, entrepreneurs and talents. It will further strengthen the country’s position as an international economic centre and encourage the flow of investments to the country’s vital economic sectors.
Under the earlier CCL, foreign shareholders were restricted to own only up to a maximum of 49 per cent in a ‘limited liability company’ (LLC) operating as an onshore UAE business. The law, therefore, required an Emirati individual or 100 per cent Emirati-owned company to hold the balance 51 per cent share as a local sponsor.
