You no longer need an Emirati shareholder to own a business in the UAE
The move aims to attract foreign entrepreneurs to the country…
Commercial companies have been granted the ability to be 100 per cent foreign-owned. HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE has overhauled the need to have an Emirati shareholder to start a business in the UAE.
The UAE President issued a decree which introduced significant amendments to the Federal Law No. 2 of 2015. According to government news agency, Wam, businesses can now be fully established by non-Emiratis of all nationalities.
The move aims to make the UAE more attractive to overseas entrepreneurs, with the hope to increase foreign capital in the Arab world’s second largest economy.
رئيس الدولة يعتمد تعديلات في قانون الشركات تتيح لرواد الأعمال والمستثمرين الأجانب إمكانية تأسيس الشركات وتملكها بشكل كامل دون الحاجة لاشتراط جنسية معينة. #حكومة_الإمارات pic.twitter.com/K4aLkm36lC
— UAEGov (@uaegov) November 23, 2020
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Significant changes also apply to firms that wish to become joint stock companies, can now sell no more than 70 per cent of the company, up from 30 per cent through IPOs. Additionally, for capital increases or decreases of concern in public companies, the new decree enables the company to issue bonds and convert them into shares.
The news comes after Dubai Tourism announced that overseas tourists can be granted a one-year visa to work from the UAE. It aims to target employees currently working from home, who wish to enjoy a different climate without sacrificing their job.
The new visa costs US$287 (Dhs1,054) plus medical insurance with valid UAE coverage and processing fee per person. Applicants will only be approved if they earn a monthly salary of US$5,000 (Dhs18,365) per month, and can prove this with last month’s payslip and three months’ bank statements.
Entrepreneurs and business owners are also welcome to apply, with proof of ownership of company for one year or more, an average monthly income of US$5,000 per month and three preceding months’ bank statements.
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