{"id":2451,"date":"2021-07-21T11:04:00","date_gmt":"2021-07-21T11:04:00","guid":{"rendered":"https:\/\/zenesiscorp.com\/business-setup\/?p=2451"},"modified":"2021-08-05T08:57:22","modified_gmt":"2021-08-05T08:57:22","slug":"100-foreign-ownership-for-llcs-everything-you-must-know-about-it","status":"publish","type":"post","link":"https:\/\/zenesiscorp.com\/business-setup\/100-foreign-ownership-for-llcs-everything-you-must-know-about-it\/","title":{"rendered":"100% Foreign Ownership for LLC\u2019s Comes Into Effect from 1st June 2021:  Here\u2019s Everything You Must Know About It"},"content":{"rendered":"\n<p>In a bid to make the United Arab Emirates (UAE) a global investment destination, the government made landmark changes in the Federal Commercial Company Law No.2 of 2015. The changes were announced in December 2020 that advocated full ownership of LLCs to foreign investors. These&nbsp;ownership&nbsp;changes bring a breath of fresh air to global investors as they no longer have to allocate 51% share ownership to an Emirati-owned company or Emirati individual to run business in mainland UAE. The Ministry of Economy has announced this amendment will come into effect from 1<sup>st<\/sup>&nbsp;June, 2021, and&nbsp;companies&nbsp;must&nbsp;change the corporate structure&nbsp;accordingly&nbsp;before 1<sup>st<\/sup>&nbsp;June, 2022.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Changes&nbsp;Every Business Owner Must be Aware Of<\/strong>&nbsp;<\/h3>\n\n\n\n<div style=\"height:14px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-1024x576.png\" alt=\"\" data-id=\"2548\" data-full-url=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1.png\" data-link=\"https:\/\/zenesiscorp.com\/business-setup\/?attachment_id=2548\" class=\"wp-image-2548\" srcset=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-1024x576.png 1024w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-300x169.png 300w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-768x432.png 768w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-1536x864.png 1536w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-page-2-1-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/li><\/ul><\/figure>\n\n\n\n<p>Before&nbsp;the amendment, foreign investors were&nbsp;allowed to own up to a maximum of 49% shares in their UAE-based LLC, while the remaining 51% were&nbsp;required to be owned by an Emirati individual or an Emirati-owned company. It was not possible to register and operate a Limited Liability Company (LLC)&nbsp;on&nbsp;the&nbsp;mainland without an Emirati or a local sponsor, and this has been changed entirely due to the amendment. Foreign investors can now have 100% ownership in LLCs that fall in the following category:&nbsp;<\/p>\n\n\n\n<div style=\"height:12px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Agriculture&nbsp;<\/li><li>Art &amp; Entertainment<\/li><li>Administrative &amp; Support Services&nbsp;<\/li><li>Construction&nbsp;<\/li><li>Education&nbsp;<\/li><li>Healthcare&nbsp;<\/li><li>Hospitality&nbsp;<\/li><li>Food&nbsp;<\/li><li>Information &amp; Communication&nbsp;<\/li><li>Manufacturing&nbsp;<\/li><li>Professional Services&nbsp;<\/li><li>Scientific &amp; Technical Activities&nbsp;<\/li><li>Renewable Energy&nbsp;<\/li><li>Space<\/li><li>Transport&nbsp;<\/li><li>Storage&nbsp;<\/li><\/ul>\n\n\n\n<div style=\"height:12px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Investors eyeing on running LLCs that fall in other categories&nbsp;or areas&nbsp;that may have a strategic impact&nbsp;will be subjected to restrictions, and 100% ownership won\u2019t be granted.&nbsp;The new&nbsp;change is expected to bring in more investment from across the globe, giving a boost to the UAE\u2019s economy.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:47px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What can Entrepreneurs&nbsp;expect&nbsp;from the New Changes?<\/strong><\/h3>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-1024x576.png\" alt=\"\" data-id=\"2545\" data-full-url=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1.png\" data-link=\"https:\/\/zenesiscorp.com\/business-setup\/?attachment_id=2545\" class=\"wp-image-2545\" srcset=\"https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-1024x576.png 1024w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-300x169.png 300w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-768x432.png 768w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-1536x864.png 1536w, https:\/\/zenesiscorp.com\/business-setup\/wp-content\/uploads\/2021\/07\/Heres-Everything-You-Must-Know-100-Ownership-Inner-Page-1-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/li><\/ul><\/figure>\n\n\n\n<p>With&nbsp;the&nbsp;100% ownership&nbsp;clause&nbsp;coming into existence,&nbsp;the global investors\u2019 community will view UAE as a golden investment hub. Foreign investors who already own established organizations in UAE with the mandatory old shareholding corporate structure can now consider regaining full ownership. They can also explore the option to own a fully-owned LLC in&nbsp;the&nbsp;mainland (onshore) as an alternative or an addition to their free zone setup.&nbsp;This development can also spark a debate in the business community about the long-term benefits of free zones.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Even though free zone offers a familiar legal regime and allows foreign investors to have full ownership of their organizations, they don\u2019t permit companies established within their region to conduct trade on the mainland. With the new ownership clause coming into effect, businesses&nbsp;registered&nbsp;in free zones may now want to establish their entity in the mainland. As all licensed&nbsp;companies&nbsp;will change their corporate status according to the amended law,&nbsp;major&nbsp;movement can be seen in the business space.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Impact&nbsp;of the Changes&nbsp;on the&nbsp;Existing &amp;&nbsp;New Businesses<\/strong>&nbsp;<\/h3>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Many investors were interested&nbsp;in being&nbsp;a part of&nbsp;the&nbsp;UAE\u2019s booming economy, but the old shareholding norms made them reluctant to invest here. As the country moves up in terms of ease of doing business due to the new changes, global investors can now easily set up their business with full ownership.&nbsp;So if you\u2019re a non-Emirati of any nationality, you are eligible to fully own your LLC if it falls under the allowed sectors.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Existing businesses can now reassess their corporate structure and retain full ownership by&nbsp;exploring possible options. If you own a&nbsp;licensed&nbsp;business in UAE or planning to register one, the following key points are worth noting:&nbsp;<\/p>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Company meetings can now be&nbsp;presided&nbsp;by expatriates. Earlier, Emiratis would&nbsp;head&nbsp;any company meeting.&nbsp;<\/li><li>Joint stock companies can now sell up to 70% of its shares through IPO; the earlier limit was restricted to&nbsp;a&nbsp;mere 30%.&nbsp;<\/li><li>Prohibition on expatriates serving the&nbsp;entities&#8217; board of directors has been lifted.&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>The need for&nbsp;the&nbsp;foreign investor\u2019s owned companies to have a majority of local agents and Emirati shareholders during company registration no longer exist.&nbsp;<\/li><li>Executive officers or key chair persons can now be removed if they abuse their power.&nbsp;<\/li><li>If the company engages in any activity through its directors and general managers that results in losing money, the stakeholders hold the right to sue the company.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Knowing the new laws is crucial,&nbsp;but it is best to consult professionals and seek reliable services for an error-free implementation. If you own a licensed business or are planning to register one, you can&nbsp;contact us&nbsp;for a detailed, personalized consultation.<\/p>\n\n\n\n<p> At&nbsp;Zenesis&nbsp;Corp,&nbsp;we have a diverse talent pool with years of experience in their respective fields. Whether you need&nbsp;professional&nbsp;help changing your current corporate structure or registering&nbsp;a new LLC in&nbsp;an&nbsp;onshore location following the new amendment, we can help you with all these activities with the highest efficiency.&nbsp;<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><a href=\"https:\/\/zenesiscorp.com\/business-setup\/contact-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">Contact us<\/a>&nbsp;now at: +971 4 447 4997,&nbsp;<a href=\"https:\/\/api.whatsapp.com\/send?phone=971%2058%20914%202200\" target=\"_blank\" rel=\"noreferrer noopener\">WhatsApp: +971 58 914 2200<\/a>&nbsp;or email:&nbsp;<a href=\"mailto:in**@*********rp.com\" data-original-string=\"Hvh8ATM1slemeTg6smQUzQ==6fctaJIKuohCdIt9psQT8r\/HidnfGlR8m9IM9CdIe7mdmM=\" title=\"This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.\"><span \n                data-original-string='\/dDh\/RisEw1shpUeFqRXrg==6fc4iwGbIjJYP0KmzMK7O3hl1aL5u4JSnnlkhkRTVkhOBI='\n                class='apbct-email-encoder'\n                title='This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.'>in<span class=\"apbct-blur\">**<\/span>@<span class=\"apbct-blur\">*********<\/span>rp.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a bid to make the United Arab Emirates (UAE) a global investment destination, the government made landmark changes in the Federal Commercial Company Law No.2 of 2015. The changes were announced in December 2020 that advocated full ownership of LLCs to foreign investors. These&nbsp;ownership&nbsp;changes bring a breath of fresh air to global investors as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/posts\/2451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/comments?post=2451"}],"version-history":[{"count":5,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/posts\/2451\/revisions"}],"predecessor-version":[{"id":2550,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/posts\/2451\/revisions\/2550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/media\/2547"}],"wp:attachment":[{"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/media?parent=2451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/categories?post=2451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zenesiscorp.com\/business-setup\/wp-json\/wp\/v2\/tags?post=2451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}