The 100% foreign ownership law for onshore companies has attracted a lot of eyeballs from all around the world. Business owners and budding investors can now enjoy complete business ownership in the mainland region as well. Therefore, you’re now freed from the hassle of finding a reliable local sponsor (UAE national) who’ll have legal participation in your company alongside 51% shareholding as well.
The latest amendment in the Companies Law has empowered expats to enjoy 100% foreign ownership in Dubai mainland, much like the legal structure in free zones. All you need to do is check whether your business activities meet the required criteria to savor 100% ownership in the UAE and apply for the same by taking help from the business consultants at Shuraa UK.
How to Open an Onshore Company with 100% Foreign Ownership?
Setting up your venture in the mainland region with 100% ownership in the UAE is a big plus for investors looking to find a home for their business in the country. All you need to do is follow the steps mentioned below to launch your onshore company:
1. List your Business Activities
It’s imperative for business owners to list down all the activities that they wish to carry out in the UAE once they establish their onshore company. The Department of Economic Development (DED) maintains an exhaustive list of around 2,000 permissible business activities. You can choose the ones that match your business model, and the same would reflect in your approved trading license.
You don’t need to worry in case any critical business activity isn’t listed by the DED. You can get in touch with the business consultants at Shuraa UK, and we’ll help you apply for external approvals to get the business activity listed in your license.
2. Finalise the Company’s Legal Structure
100% foreign ownership in Dubai mainland has opened a new world of opportunities for onshore company formation. You can now form an LLC (limited liability company) without a local sponsor. This implies you no longer need a UAE national who’ll have 51% shareholding of your company.
All you need is assistance from a local service agent (LSA) who’ll help you with the paperwork, legal procedures, and more to ensure you don’t face any trouble opening your dream venture in Dubai mainland. The best part is that the LSA doesn’t have any legal shareholding in your company, so you can enjoy 100% foreign ownership of your enterprise.
3. Trade Name Reservation
The next step to launch your onshore company with 100% foreign ownership is to reserve a legal trading name for your business. The name you choose should be indicative of your business activities and shouldn’t be copied from an established brand in the marketplace. The UAE government requires you to submit a list of 3-4 preferred trading names, and you get the approval/rejection status of each name in quick time.
Ensure that the names you select are unique, catchy, and devoid of any derogatory terms or words that hurt the sentiments of any religion or community. Moreover, always use a person’s full name if you wish to keep the same as your official business name.
4. Secure an Office Space
An office space that gels well with your venture’s personality is a must-have in 2021. Therefore, explore as much as you can before finalising the office space for your onshore enterprise. It’s recommended to rent office space rather than investing in real estate for several reasons. It’s beneficial as you don’t need to invest hefty sums of money upfront and also facilitates hassle-free relocation.
New-age investors and entrepreneurs can also secure virtual office space for their venture in the mainland region. You can launch your company virtually without investing in physical office space by getting in touch with our business experts. You need to sign a sustainability agreement with us, and we’ll take care of the rest.
5. Apply for a Business License
100% foreign ownership in Dubai opens the gate for several lucrative onshore business opportunities without the legal involvement of a mandatory local sponsor. Therefore, you’re your own master, and the keys to the kingdom of your corporate success rest in your hands. Applying for a business license in the UAE involves a lot of paperwork and approvals.
This is done to ensure that unauthorised agencies don’t set up their firms in the Emirates and fake applications are also filtered through rigorous documentation. You must have the initial approval certificate, payment receipt of trade name reservation, identity proof documents, and more to apply for a business license.
6. Procure Visa and Open a Corporate Bank Account
The last steps involve the procurement of visas for yourself and your family. You can obtain a visa by sharing your investment plan, or by investing in more office space. Moreover, business owners can also secure visas for their domestic staff.
Having a corporate bank account in a reliable bank is also vital during your stay in the UAE. Always choose a bank that offers long-term business benefits alongside robust banking facilities. You can connect with the legal advisors at Shuraa UK in case you face any issues in opening a bank account for your company.
What are the Benefits of Forming an Onshore Company in the UAE?
- 100% company ownership in the UAE is now legalised for onshore companies as per the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment (FDI). Therefore, you now have complete control over the day-to-day business activities, finances, and everything related to your dream venture. Remember that you may still need an LSA for company establishment. However, they won’t intervene in any of your business activities.
- Mainland or onshore company formation is also beneficial because you’re presented with the opportunity to capture a larger audience segment. Business owners can trade freely within Dubai, the UAE and international trading is also seamless for mainland companies.
- Companies in the mainland region enjoy some exclusive privileges. Onshore companies also get a preference for government projects and other such legal tenders.
Launch your Onshore Company in the UAE
Investors shouldn’t miss out on the opportunity to establish their companies in the mainland region and enjoy 100% company ownership in the UAE. The process to set up your onshore company has undergone changes due to the amendments in the Companies Law.
You now need a local service agent instead of a local sponsor to launch your onshore company with complete ownership. At Shuraa UK, we help you establish your company in the UAE and become your reliable local service partners at nominal costs. Let’s connect today to get started!