If you were planning to establish a business in the United Arab Emirates but were worried about the sponsorship requirement in the UAE, there is a piece of good news for you. This Wednesday, the Ministry of Economy (MoE), UAE, has announced that it will bring a change to the Federal Commercial Companies Law No.2 of 2015, which will bring a significant difference in foreign ownership requirements in the United Arab Emirates.
Major Change Made
According to the latest changes, the commercial companies in the country will have no requirement for a UAE national shareholder, meaning that the foreign entity will be able to have 100% ownership of the company. This is a piece of huge news for all businesses worldwide as this will allow them to come to the country and own a complete company without sharing the ownership with a local national.
As per the Commercial Companies Law No. 2 of 2015, all the foreign owners of a company had a cap of owing 0nly 49 per cent of the shares of the company is a Limited Liability Company (LLC). The rest of the share of the company was owned by an Emirati Individual or an Emirati owned company.
This change will allow complete ownership of the company by a foreign entity without any worry about the nationality of the entity. The exclusion to this monumental change made is the companies that have been specifically chosen by the cabinet and the companies which are completely owned by federal or local government or subsidiaries of Federal or Local Government companies.
The Impact of the Changes on the UAE
There will be huge implications of this huge change on the economy of the country. The change will impact the economy of the country in a positive way and will attract foreign investment to the country. The Minister of Economy Abdulla bin Touq Al Marri said, “The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government efforts to facilitate doing business.”
The United Arab Emirates is already considered a global investment destination, and this decision will attract more global investors from all parts of the world. The decision made was in line with the UAE’s comprehensive vision to strengthen its position as a lucrative investment destination for the world.
This change will also emphasize the benefits of investing in the country and attract businesses from all over the world, with the government working hard towards providing a business-friendly environment to the companies. The change will help the county to strengthen its position as an important location with the prospect of making the investment in the business.
Impact on Businesses
The government of the UAE understands the importance of bringing in foreign investors in the country. The change will prove to be a crucial step for the development of the country’s economy. This move will attract more and more foreign investors, which will set up a company in the country and help the economy of the country.
With an increased inflow of companies, there will be a need for assistance in the formation of a company and financial services that will assist the management in the company’s growth. Such services include Accounting Service, Auditing Services, Payroll Services, VAT and Tax related services and many others. These services play a very important part in the growth and development of a business. This is why it is suggested that a company should avail these financial services from a reputed financial firm.
How can JAXA help your Business?
JAXA is a reputed Chartered Accounting firm that will understand the various processes of the business and will provide a relevant solution to the problem. JAXA Chartered Accountants will help you establish your business in the UAE. It also provides a number of services that will help the company flourish, such as Accounting, Bookkeeping, Auditing, and many others.
To know more about the services provided by JAXA Chartered Accountants, feel free to Contact Us. We will be happy to help you and your business.
