DUBAI: In a major development, the UAE has removed the need to have nationals as sponsors, which will now allow expat investors 100% ownership starting from December 1, 2020.
According to media reports from UAE, the new regulation is in line with a federal law issued by President His Highness Sheikh Khalifa Bin Zayed Al Nahyan and which amends Law No. 2 of 2015 on companies and their shareholding.
The long-awaited 100 per cent ownership by foreign nationals of companies licensed and registered in the UAE is allowed as per Cabinet Resolution No. 16 of 2020.
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As per the earlier law, foreign shareholders were limited to owning a maximum 49 per cent in a ‘limited liability company’ (LLC) operating as an onshore UAE business. This requires an Emirati individual or 100 per cent Emirati-owned company to hold the balance 51 per cent share as a local sponsor. This law has been now amended and it now allows legal persons to establish companies without the need for a specific nationality.
