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United Arab Emirate’s 100% Foreign Ownership Rule

United-Arab-Emirate's-100%-Foreign-Ownership-Rule

A new law was announced in 2021 permitting 100% foreign ownership in the United Arab Emirates. This law grants foreign ownership in mainland or “onshore” businesses.

The traditional law only allowed 49% of foreign ownership. The 100% foreign ownership was permitted only in free zones or while setting up the professional services company. The milestone economic reform for the United Arab Emirates has the law to increase FDI in the United Arab Emirates by 15-20%.

It’s the best time to invest in the United Arab Emirates. UAE is seen as the gateway to international business opportunities and even more. This country is known for their pro-business culture and conducive infrastructure of foreign investment.

UAE is inclined towards a political climate extremely favourable for investments. The benefits are zero corporate taxes of the gained profits and complete exemption of income tax. Currently, there are endless opportunities with the new reform that benefits UAE’s economy and foreign investors alike.

The reason to choose mainland over free zone foreign investment

The free zone areas have some restrictions when it comes to foreign investments. When the tax and customs benefits are lucrative, the restrictions complicate things for first-time entrepreneurs. Restrictions like staff numbers and ownership of spaces are absent when you invest in the mainland business setup.

The company formation in UAE is now simpler for foreign entrepreneurs

Sectors that directly benefit from the new law are artificial intelligence, renewable energy, technology and space. With the traditional law, foreign investors work closely with local sponsors for their mainland business. New law removes this obligation. When you are an entrepreneur looking to invest in the UAE, you get more autonomy now. So you can directly focus on your company formation without worrying much. This shall increase productivity and explore added avenues to make profits.

Guiding to benefit from UAE’s new foreign ownership rule

The mainland business setup is preferred over the free zone business setup because of various reasons. This has increased access to the world market as a lucrative enough offer for many. The new law also has few restrictions imposed on free zone businesses. You must be guided by professional consultants when you are a first-time investor. The professionals make the process seamless and hassle-free, making you choose the best UAE destination for your business.

Select the best assistance to guide your company formation in the mainland Emirate. Grow your business to new heights by making the most of the new foreign ownership law.

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