UAE Permits 100% Ownership Of Businesses By Overseas Nationals

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UAE Permits 100 Ownership Of Businesses By
Overseas Nationals
Presentation By Start Any Business
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Introduction
As we know well that the United Arab Emirates
(UAE) is one of the perfect destinations for
overseas entrepreneurs to start their business or
company. And now there is good news for foreign
entrepreneurs that UAE permits 100 ownership of
Businesses by overseas nationals. The government
of the United Arab Emirates (UAE) declare by
proclamation that foreign traders or investors
can completely own local businesses without the
necessity for an Emirati sponsor. From December
1, 2020, the landmark the United Arab Emirates
authorizing overseas 100 ownership of
businesses will take effect. On Monday 23
November the President of United Arab Emirates
(UAE), Sheikh Khalifa bin Zayed Al Nahyan issued
a decree that allowing overseas nationals 100
percent ownership of commercial companies within
the country. He passed this long-anticipated and
extensively reviewed Foreign Direct Investment
Law, which will have game-changing indications on
the investment aspects of the nation. The
multiple classes of business licenses will no
more demand Emiratis as sponsors with 51 percent
shareholding powers, according to the new FDI
administration.
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Vice-President and Prime Minister of the United
Arab Emirates (UAE) and Ruler of Dubai, His
Highness Sheikh Mohammed bin Rashid Al Maktoum,
said the UAE now enjoys a fertile legislative
atmosphere for Foreign Direct Investors to boost
the nations competitiveness. The Foreign Direct
Law (FDI) law, which was adopted in September
2018 through Federal Legislative Decree No 19 of
2018 and an ensuing resolution by the United Arab
Emirates (UAE) Council of Ministers No 16 of 2020
in March 2020 modify Commercial Companies Law
(CCL) No 2 of 2015. Under current United Arab
Emirates (UAE) law, overseas shareholders can own
up to 49 percent of a locally registered company,
with a local sponsor/partner holding the 51
percent majority. Although, many sectors deemed
strategic are exempt from the new rules that are
announced on 23 November 2020. These comprise
energy and hydrocarbons, transport, and
telecommunications. The new law has amended 51
articles of Commercial Companies Law (CCL) and
added new ones, mainly focusing on the
regulations of provisions of set up companies
with limited liability shareholding.
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In United Arab Emirates (UAE), Dubai and Abu
Dhabi are already recognized as two of the most
powerful business and financial hubs in the world
by international entrepreneurs who are lured by
the incredible possibilities provided in terms of
finance, trade, and commerce, and additionally
the renowned can-do attitude and the low tax
atmosphere in this destination. And now this
amazing news also makes these destinations the
best place for foreign investors to set up
businesses. In March 2020 the UAE Cabinet
Resolution fixed the Positive List of sectors
and economic activities in which the FDI law is
permitted and the percentage of ownership is 100
in companies outside free zones. Although this
remained subject to certain criteria being
satisfied. The decree allows suitable local
officials a set of powers, comprising setting a
particular percentage of Emiratis in the capital
allocation and boards of directors of companies,
approving applications to set up companies-
except for joint-stock companies and recognizing
fees as per to the policies adopted by the UAE
Cabinet.
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The new decree is an additional step in a series
of efforts that the United Arab Emirates (UAE) is
taking to raise the readiness of the national
economy and ready for the future by developing
commercial and investment chances and enlarging
the competitiveness of the business atmosphere,
in line with the rapid economic changes and
developments taking place in the global economy,
said by the UAE Minister of Economy Abdullah bin
Touq Al Marri.
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