UAE: On Thursday, Dubai Economy announced guidelines explaining the schemes for complete ownership for international investors, which began on June 1 and is intended at improving the investment. Federal Decree-Law No. (26) of 2020, which revised some terms of Federal Law No. (2) of 2015 concerning the ownership of commercial organizations, will stimulate the UAE’s economic improvement and supplement the profits the nation has executed so far.
It will also support intensifying Dubai’s distinguished rankings in international investment signs and direct global records linked to ease of doing business and business development. Investors soliciting full ownership can finish the procedures expected through the service channels of Dubai Economy or the Invest in Dubai digital platform. A total of 59 investors in Dubai have now taken benefit of the recent decision.The commercial ventures in which complete ownership was asked include general trade, contracting, jewelry, gold, pearls, luxury watches, and foods, as well as cars and trucks trading. In the industrial category, sectors included metals and construction, flooring, building materials, foods, water production, and paints sectors. A kindergarten, an elementary and middle school, and a hotel also asked for 100 percent ownership.
As per the guidelines declared by Dubai Economy on its website, 100 percent international ownership is available for more than 1,000 commercial and industrial enterprises excluding economic activities with a strategic influence, which are in seven divisions only. The status of existing business licenses, where complete ownership of the activities is available, and that includes an Emirati partner, continues unchanged as per the memorandum of association and the partners’ settlement. Dubai Economy explained that a reduction of the percentage portion of the Emirati partner from 51 percent of his/her withdrawal from the partnership is possible according to the legal procedures followed. Complete ownership does not make any variation to the prevailing schemes or requirements for authorizing, except that it’s no longer compulsory to have an Emirati partner or define a fixed quota ratio for him/her. The guidelines also assert that no extra fees, guarantees, or capital are necessary for full foreign ownership.
Dubai Economy also emphasized that though it’s not desirable to transform the judicial form of a company from an LLC (limited liability company) to a single proprietorship under a foreign title as per the current law, the license can be assigned to a one-person company with restricted responsibility. Full ownership does not refer to commercial firms, as they are controlled by the Commercial Agencies Law. Branches of foreign companies do not need an Emirati agent.
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To get a license or revise the memorandum of association, investors can log in to Invest in Dubai, the allied digital platform that provides the most competitive centers to start a business in Dubai. It gives a unique experience, allowing customers to finish licensing procedures quickly and establish their business within a few minutes and without visiting any service center. The platform can be utilized for primary approvals, trade name reservation, and issuance of instant licenses, Dubai SME licenses, Intelaq licenses, and DED Trader licenses in addition to license renewal.
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