For years, foreign investors faced strict ownership rules when setting up a business in Dubai. Expats needed a local sponsor holding 51% of the company, leaving them with limited control. But things have changed. Today, Dubai’s updated laws allow full foreign ownership in most sectors, making it easier than ever for expats to run their ventures independently.
The Law That Changed It All
In 2021, the UAE revised the Commercial Companies Law. This major update removed the requirement for a local Emirati sponsor in many industries. Now, foreign entrepreneurs can own 100% of their mainland companies, depending on the type of business activity.
The goal behind this reform was clear—boost foreign investment, attract global talent, and make the UAE one of the most open markets for entrepreneurs.
Mainland vs. Free Zone Ownership
Before choosing where to set up, expats should understand the difference between mainland and free zone ownership.
1. Mainland Companies:
Expats can now have complete ownership of their mainland company, except in strategic sectors like oil, gas, and defense. Setting up in the mainland allows businesses to trade anywhere in the UAE and internationally. However, approval depends on your chosen activity being on the approved list of fully foreign-owned categories.
2. Free Zone Companies:
Free zones have always offered 100% foreign ownership. They’re ideal for businesses focused on international trade, consultancy, or digital services. The only drawback is limited access to UAE’s local market without a distributor or local branch.
How to Get 100% Ownership in Dubai
Expats looking to start their venture should follow these key steps:
1. Choose the Right Structure
Select a legal structure that fits your business model—Limited Liability Company (LLC), Sole Establishment, or Civil Company. Each has different requirements and benefits.
2. Pick a Business Activity
The Department of Economy and Tourism (DET) has an updated list of over 1,000 activities eligible for full ownership. Activities in sectors like trading, services, manufacturing, and e-commerce are now open to expats.
3. Get Necessary Approvals
You’ll need approval from relevant authorities based on your chosen activity. For example, a healthcare or education business might require extra permits from specialized departments.
4. Draft and Register Documents
Prepare your Memorandum of Association (MOA), trade name reservation, and application forms. These must comply with UAE regulations. Legal consultants or business setup firms can help ensure accuracy.
5. Obtain Your License
Once your documents are approved, you’ll receive your trade license. This grants full legal ownership and the right to operate in Dubai.
Key Benefits of 100% Ownership
Owning your company outright comes with several advantages:
- Full control over operations and profits.
- No local sponsor fees or shared decision-making.
- Freedom to restructure, sell, or expand the company.
- Better protection of intellectual property and assets.
This freedom encourages long-term investment and gives entrepreneurs confidence to scale their businesses across the UAE.
Important Considerations
While the law has opened doors, not every sector qualifies for 100% ownership. Strategic and national security-related fields still require local participation. It’s also vital to keep your business compliant with UAE tax laws, licensing renewals, and corporate regulations.
Partnering with a trusted consultant ensures your setup process goes smoothly and that your company structure aligns with the law.
Final Thoughts
Dubai has become one of the most attractive places in the world for entrepreneurs. With legal reforms supporting full ownership, expats now have more control, fewer restrictions, and greater opportunities to grow.
Setting up a business in Dubai is no longer complex—it’s a clear, well-structured process for those who plan carefully and follow the right steps.
Looking to start your company in Dubai with 100% ownership?
Get expert guidance from AR Associates — specialists in company formation, licensing, and legal documentation across the UAE.
