Starting a business is a big decision, especially if you are investing your savings or building something for your family’s future. 

If you are looking at the UAE, you are probably asking one key question: can I fully own my company here? The answer is yes, in most cases. 

The rules around 100% foreign ownership in the UAE have changed significantly, making it easier for foreign investors to own and control their businesses. 

Keep reading to understand how it works, who qualifies, and what you need to do to stay compliant once your company is up and running.

What Is 100% Foreign Ownership in the UAE?

100% foreign ownership in the UAE means a foreign investor can fully own a company without giving 51% of shares to a UAE national for most eligible business activities. These reforms were introduced through amendments beginning in 2020 and implemented under the updated Commercial Companies Law framework.

Historically, in many mainland commercial company structures, a local Emirati shareholder held 51% ownership. Today, that requirement has been removed for most commercial and industrial activities. The reform was designed to attract foreign investment, strengthen the economy, and increase global competitiveness.

In simple terms, this means you can now:

• Own 100% of your mainland company in most sectors
• Keep full control of profits
• Make independent business decisions
• Avoid mandatory majority local shareholding for eligible activities

However, certain strategic impact activities, as defined by UAE regulators, may still have ownership restrictions or require regulatory approval.

Can You Have 100% Foreign Ownership in the UAE Mainland?

Yes, 100% foreign ownership in the UAE mainland is allowed for most business activities. The previous 51% local shareholder requirement no longer applies in many sectors, except for activities classified as strategic impact.

Mainland companies are licensed by the economic licensing authority of each emirate, often referred to as the Department of Economic Development or equivalent authority. Mainland businesses generally have broader access to the UAE market, although specific activity permissions and branch requirements may vary depending on the emirate and regulatory framework.

Key advantages of mainland 100% foreign ownership in UAE include:

• Broad access to the UAE market
• Potential eligibility to participate in government contracts, subject to procurement and sector requirements
• Greater operational flexibility
• Simplified ownership structure

It is important to confirm that your business activity is not classified under strategic impact regulations before proceeding.

📌Also read: Business License in the UAE: Types, Cost, and How to Get One

100% Foreign Ownership in UAE Free Zones

Free zones are widely known for allowing full foreign ownership and operating under their own regulatory frameworks. Mainland reforms now provide similar ownership benefits for most activities, but free zones remain a popular choice depending on business needs.

Many free zones are structured to support international investors and may offer advantages that depend on the specific free zone authority and its regulations.

Free zone companies are often associated with:

• Full foreign ownership
• The ability to repatriate profits, subject to applicable laws
• Streamlined formation processes
• Regulatory environments tailored to specific industries

Free zone permissions can differ from mainland permissions. If you plan to operate or sell directly within the UAE mainland market, confirm required approvals or branch arrangements with the relevant authority.

📌 Also read: Qualifying Free Zone Person UAE Corporate Tax

Which Activities Qualify for 100% Foreign Ownership in UAE?

Most commercial, industrial, and professional activities qualify for 100% foreign ownership in the UAE. The government removed ownership limits for sectors that are not considered strategic impact activities.

Examples of business activities that often qualify include:

• Trading and retail businesses
• E-commerce companies
• Consultancy services
• Manufacturing
• Technology and IT services
• Marketing and advertising
• Real estate brokerage

Each business activity has a classification code assigned by the licensing authority. This classification determines whether full foreign ownership is permitted. Always verify your specific activity with the relevant authority before registering your company.

📌 Also read: Top 20+ Small Business Ideas in UAE

Sectors Where 100% Foreign Ownership in UAE Is Restricted

Although most sectors now allow full ownership, certain strategic impact activities may require local participation or additional regulatory approval. These activities are determined by competent authorities.

Strategic impact activities may relate to areas such as national security, defense, regulated financial industries, or other sectors identified by regulators. The exact ownership percentage and approval process depend on the authority overseeing that sector.

If your business falls into a regulated category, confirm ownership limits before investing capital to avoid compliance risks.

How to Get 100% Foreign Ownership in UAE Step by Step

Setting up a company with 100% foreign ownership in the UAE involves a structured process. Requirements may vary slightly depending on jurisdiction and legal structure.

Step 1: Choose Your Business Activity

Select the exact activity you plan to operate. This determines eligibility and license type.

Step 2: Decide Between Mainland or Free Zone

Mainland is suitable for businesses targeting the UAE market. Free zones may suit export-focused or industry-specific businesses.

Step 3: Reserve Your Trade Name

Submit your proposed name for approval through the licensing authority.

Step 4: Apply for Initial Approval

Provide required documents to receive preliminary clearance.

Step 5: Prepare Legal Documents

Draft and notarize your Memorandum of Association where required by the authority.

Step 6: Secure Office Space

Obtain office space in accordance with the licensing requirements of your chosen jurisdiction.

Step 7: Obtain Your Trade License

Once approved, you receive your trade license and can begin operations.

At this stage, setting up your accounting system should be a priority.

Corporate Tax and VAT Under 100% Foreign Ownership in UAE

Owning your company fully also means full responsibility for tax compliance. The UAE introduced Corporate Tax at 9% on taxable income above AED 375,000, with 0% applied to taxable income up to that threshold.

The UAE introduced VAT on 1 January 2018 at a standard rate of 5%. VAT registration is mandatory if taxable supplies and imports exceed AED 375,000. Voluntary registration is available once taxable supplies reach AED 187,500.

Business owners must manage:

• Corporate Tax registration and filing
• VAT registration if required
• Accurate bookkeeping
• Timely reporting to the Federal Tax Authority
• Proper financial documentation

Failure to comply can result in penalties imposed by the Federal Tax Authority.

This is where professional accounting support becomes important. Outsource Prime Accountants and Bookkeepers (OPAB) helps real estate firms, sports academies, and service based businesses across Dubai and the UAE manage bookkeeping, Corporate Tax filing, and FTA VAT compliance. As Zoho Books, QuickBooks, and Odoo experts, they support financial clarity and informed decision making.

📌 Also read: Is Corporate Tax Registration Mandatory in the UAE?

Benefits of 100% Foreign Ownership in UAE

The reform has made the UAE more attractive to entrepreneurs and investors. Full ownership provides greater control and clearer governance.

Key benefits include:

• Complete control over profits
• No mandatory majority shareholder in eligible sectors
• Simplified ownership structure
• Greater clarity for investors and partners
• Stronger long term planning flexibility

Common Misunderstandings About 100% Foreign Ownership in UAE

There are still misconceptions about how these rules work.

• It only applies in Dubai. The federal framework applies across all Emirates, though procedures vary by authority.

• Every activity that qualifies. Strategic impact activities follow special approval processes.

• Free zone and mainland rules are identical. Each jurisdiction has its own operational permissions and regulatory structure.

• There are no tax responsibilities.Corporate Tax and VAT obligations still apply where thresholds are met.

Why Proper Accounting Matters After Securing 100% Foreign Ownership in UAE

After obtaining your license, financial discipline becomes critical. Good bookkeeping protects your business from compliance risks and reporting errors.

Strong accounting systems help you:

• Track income and expenses accurately
• Monitor taxable income thresholds
• Prepare Corporate Tax returns
• Manage VAT reporting
• Make informed business decisions

OPAB provides smart, affordable, and transparent accounting solutions trusted by businesses across Dubai. From Corporate Tax filing to FTA VAT compliance and accounting system setup, they support sustainable growth.

Conclusion

100% foreign ownership in the UAE has strengthened the country’s position as a competitive investment destination. It allows entrepreneurs to build companies with greater clarity and control while operating within a structured legal framework. 

At the same time, compliance with Corporate Tax, VAT, and financial reporting requirements remains essential.

If you want practical guidance on Corporate Tax filing, FTA VAT compliance, bookkeeping, and accounting system setup, OPAB Outsource Prime Accountants and Bookkeepers provides tailored support for businesses across Dubai and the UAE. 

Contact OPAB today for expert accounting and tax solutions designed to support sustainable business growth.

Frequently Asked Questions About 100% Foreign Ownership in UAE

Can I own 100% of my company in the UAE?

Yes, for most commercial and industrial activities you can fully own your company. The previous 51% local shareholding requirement has been removed in many sectors. However, strategic impact activities may still require partial local ownership or regulatory approval. Always verify your specific activity before proceeding.

Does 100% foreign ownership in the UAE apply to all Emirates?

The federal framework allows full foreign ownership across the UAE. Each emirate implements the law through its own licensing authority. While procedures may differ slightly, the ownership principle remains consistent. Confirm local requirements during the application process.

Do I still need a local sponsor for a mainland company?

For most eligible activities, a local sponsor is no longer required. If your business falls under a strategic impact category, partial local ownership may still apply. Licensing authorities can clarify this during review. It is important to check your activity classification first.

Are there minimum capital requirements for 100% foreign owned companies?

Capital requirements vary depending on the business activity and jurisdiction. Some activities require proof of capital, while others do not impose strict limits. The requirement may differ between mainland and free zone structures. Confirm this before submitting your application.

How do I check if my activity qualifies for 100% foreign ownership in UAE?

You must consult the relevant licensing authority in your emirate. Each business activity has a specific classification code. Authorities maintain updated lists of regulated or strategic activities. Professional advisors can assist in reviewing your eligibility.