Can a foreigner own 100% of a company in the UAE? Yes, for most mainland activities. The Commercial Companies Law no longer imposes a general UAE-national shareholding requirement.
Quick Answer
Yes. Foreign investors can own 100% of many mainland companies in the UAE. The Commercial Companies Law does not impose a general UAE-national shareholder requirement for most business activities.
However, Article 10 allows additional conditions for activities of strategic impact. Local licensing authorities and sector regulators may also impose requirements affecting the company’s ownership or management.
Before forming a company, confirm the permitted ownership structure, licensing conditions, corporate approvals and whether a mainland or free zone company is suitable for the intended activity.
Can a foreigner own 100% of a company in the UAE? Strategic and local limits
| Topic | Applicable rule |
|---|---|
| Strategic activities | A Cabinet committee proposes activities of strategic impact, and the Cabinet sets them and the conditions for licensing companies in them (10(1), (2)). |
| Local authority’s power | The competent authority can set a percentage of national participation in the capital or boards of companies it licenses, and approves applications under the Cabinet’s controls (10(3)). |
| Exemptions | The Cabinet can exempt a company regulated by special legislation from any national ownership condition (10(4)). |
| Company nationality | Every company formed in the UAE, including in free zones, has UAE nationality, which does not give it citizens’ rights (Commercial Companies Law). |
Planning to Establish a 100% Foreign-Owned Company in the UAE?
Discuss your proposed business activity, ownership structure and applicable licensing conditions with Leaders Advocates before proceeding with company formation.
What to check for your activity
- Whether your activity is on the Cabinet’s list of strategic impact activities, which carry extra conditions.
- Whether the licensing authority in your emirate applies any national participation requirement to your activity.
- Whether a free zone, with its own ownership rules, fits your business better.
- Whether any sector regulator, such as for financial services, adds its own conditions.
Important: Ownership Eligibility Depends on the Business Activity
Full foreign ownership does not automatically mean every business activity can be licensed under the same conditions. Strategic activities and regulated sectors may have additional requirements.
Before committing to a particular company structure, confirm the proposed activity and permitted ownership arrangements with the relevant licensing authority.
Unsure Whether Your Business Activity Allows Full Foreign Ownership?
Some activities may be subject to strategic impact conditions, national participation requirements or sector-specific approvals. Ask Leaders Advocates about the framework relevant to your proposed business.
Steps to set up a fully foreign-owned company
- Choose the activity and confirm its ownership rules with the licensing authority.
- Choose the company form, such as a limited liability company.
- Draft the memorandum in Arabic and have it authenticated (Commercial Companies Law, Article 14).
- Register the company and obtain the license, after which the memorandum is effective (Article 15).
- Keep the ownership structure under review if the activity changes.
Foreign-Owned Company Formation Checklist
Before submitting a company formation application, consider the following:
- Confirm the intended business activity and licensing authority.
- Review whether strategic impact or sector-specific restrictions apply.
- Decide whether a mainland or free zone structure is suitable.
- Select the appropriate legal form and ownership structure.
- Prepare the memorandum of association and relevant corporate documents.
- Obtain the required authentication, registration and business license.
- Review ownership requirements if the company’s activities change.
Need to Draft a Memorandum or Register a UAE Company?
Discuss your proposed corporate structure, memorandum of association, ownership arrangements and registration requirements with Leaders Advocates.
If you want to set up a company in the UAE, you can send us your activity and structure on WhatsApp.
Frequently Asked Questions
Related reading
Legal sources
Need Legal Help Setting Up a Fully Foreign-Owned Company in the UAE?
Leaders Advocates can discuss foreign ownership eligibility, mainland company formation, strategic impact activities, memorandum drafting and corporate registration. The appropriate structure depends on the proposed business activity and applicable UAE licensing requirements.
