The United Arab Emirates has transformed its business environment with 100 percent of foreign ownership in mainland businesses. This historic reform, which was adopted in the form of Federal Decree-Law No. 26 in 2020, erases the traditional 51 per cent. UAE national partner, paving the way to unprecedented possibilities for foreign investors.
Advantages of 100% Foreign Ownership to Investors.
Complete Business Control
The foreign investors are now not obliged to seek approval of local partners to make full-blown decisions. This independence is spread to the strategy planning, operational management, and the direction of the business.
100% Profit Repatriation
Retain any earnings made by your business without any restrictions to transfering earnings abroad. Currency exchange restrictions are not imposed in the UAE.
No Sponsor Requirements
Do away with the old sponsor relationship, which would have demanded a profit-sharing agreement of 15-30 percent yearly, and sponsor fees of AED 20,000-100,000.
Improved Investor Visa Programmes.
The owners of a company can receive a renewable residence visa, and the owners of a company can obtain the prestigious Golden Visa program, which provides a 5-10-year residence with references to the amount of investments.
Direct Market Access
The mainland firms, which are 100 percent foreign-owned, can establish business across the UAE and participate in government contracts- a privilege not enjoyed by most of the free zone companies.
Streamlined Registration Procedure.
The registration of companies has become much easier than before, without the complications of identifying and negotiating with local partners, with registration taking 7-14 days.
Protection of Intellectual Property.
Full ownership provides total control over intellectual property, trade secrets, and proprietary business practices without having to worry about the access of partners or partners arguing.
Reduced Long-Term Costs
Although the first setup would be a close, the profit-sharing schemes and annual sponsor fees would be removed, which would save standard companies AED 150,000-500,000 in five years.
Easier Business Scaling
Make fast decisions regarding expansion, new ventures, or strategic pivots without having to consult the partners and respond quicker to the market.
International Credibility
Complete ownership is a sign of seriousness and will attract international investors, partners, and clients who will like to see transparent ownership structures.
How expensive is a 100 percent foreign-owned company in the UAE? [2025 Pricing].
Dubai Mainland Setup Investment.
Initial Setup Costs:
- Trade License: AED 10,000 – 25,000
- Office Space (Annual): AED 15,000 – 150,000
- Government Approvals: AED 3,000 – 8,000
- Professional Services: AED 5,000 – 10,000
- Total Startup Cost: AED 35,000 -200,000
First Year Additional Costs:
- Residence Visa (per person): AED 3,000 – 5,000
- Bank Account Setup: AED 2,000 – 5,000
- VAT Registration: AED 1,000 – 3,000
Annual Operating Costs:
- License Renewal: AED 10,000 – 25,000
- Office Rent: AED 15,000 – 150,000
- Accounting & Audit: AED 10,000 – 50,000
- Total Annual: AED 45,000 – 300,000
Comparison of Costs between the old and the new structure.
5-Year Investment Analysis:
| Expense Type | 51-49% Structure | 100% Ownership | Savings |
| Setup Costs | AED 40,000 | AED 50,000 | -AED 10,000 |
| Sponsor Fees (5 years) | AED 300,000 | AED 0 | +AED 300,000 |
| Profit Sharing | AED 500,000 | AED 0 | +AED 500,000 |
| Total 5-Year Cost | AED 840,000 | AED 50,000 | +AED 790,000 |
The figures have made it clear that 100 percent ownership comes with significant financial benefits, even though they incur the same initial setup costs.
Which is better? 100% foreign ownership: Mainland vs. Free Zone.
Mainland Advantages
Market Access: No restrictions when doing business in the UAE. Local clients, bidding on government contracts and free operation in all emirates, are all available to the mainland companies.
Extended Area of operation: Access to expanded business operations. Numerous trading operations can be made only by mainland licensing.
Client Credibility: Local customers tend to use suppliers based on the mainland as they see them as more committed to the UAE market.
Flexibility on Visas: Most flexible visa allocations depending on the size of the office and the type of activity, and usually 5-20 or more visas.
Free Zone Benefits
Corporate Taxes: Qualified free zone individuals can enjoy 0 percent on qualifying income as compared to 9 percent on qualifying companies with a profit greater than AED 375,000 profit in the mainland.
Easy to use: The streamlined one-stop-shop registration procedures, where the license is issued faster (in most cases, 3-7 days).
Industry Clusters: Industry-specific areas that provide network and specific infrastructure (Dubai Internet City is a tech hub, Dubai Media City is a media hub).
Advantages of imports/exports: The exemption of customs duties on imports and re-imports.
When to Choose the Mainland
Select mainland in case your business needs:
- First-hand reach to UAE/GCC consumers and businesses.
- Eligibility for government contract bidding.
- Face-to-face proximity with clients.
- Greater scope of operation.
- Optimisation of expenses (free zone offices are costly)
When to Choose a Free Zone
Opt for a free zone if:
- The clients are mostly external to the UAE.
- Operation based on imports and exports.
- Certain industry cluster advantages are required.
- Tax optimization priority
- Streamlined administrative preference.
How to Change a Current 51-49 Company into 100% Foreign Ownership.
Conversion Process in 7 Steps
Step 1: Partner Negotiation Talk with your partner in the UAE. Set conditions of exit- historical sponsor fees 1- 2 years (AED 40,000200,000) are the norm.
Step 2: Preparation of documentation. Prepare documents: the following are documents that are required: current trade license, Memorandum of Association, partner consent letter (notarized), board resolution, and updated business plan.
Step 3: Application to DED Submit the amendment application to the ownership to the Department of Economic Development along with all required documents and a payment of amendment fees (AED 2,000-5,000).
Step 4: MOA Amendment. Revise the Memorandum of Association to indicate a 100 per cent foreign ownership structure. Delete the information of the UAE partner and re-notarize the new MOA.
Step 5: Update the license Trade license with the new ownership structure. The processing normally requires 5-7 business days.
Step 6: Authority Change registrations with the Chamber of Commerce, bank signatories, and other departments in the government.
Step 7: Final Compliance: Make sure that all company records, contracts, and official papers have expressed new ownership structure.
If Partner Refuses to Exit
Legal remedies available:
- Mediation Services: Professional mediators can be used to reach a solution (AED 10,000-30,000)
- DED Intervention: Make a complaint with economic department.
- Commercial Court: Current demonstration of factual ownership and investment.
- Arbitration: The Dubai International Arbitration Centre has quicker settlement than courts.
To be successful, you must have a record of what you actually invested in, operational control, as well as management of your business.
Is it Time to Form Your 100 percent Foreign-owned Company?
The 100 per cent foreign ownership policy of the UAE is a groundbreaking possibility for foreign investors. It has never been as opportune to make an impression in the Emirates with the full profit retention and the ability to have complete control and access to one of the most dynamic markets in the world.
InvestBiz provides the full-service solution to the company setup 100 percent-owned by foreigners:
- Total documentation support.
- DED approval processing
- Office space solutions
- Bank accounts opening assistance.
- Visa processing services
- Continued support of PRO and compliance.
Having more than 15 years of experience and 500 successful company formations, we will make your business establishment as smooth as possible, in line with legal regulations, and in the best manner to create a successful business.
InvestBiz can also be contacted today for a free consultation and cost estimate, depending on your particular business requirements.
