100 % BUSINESS OWNERSHIP IN UAE
Let me take you to a tour to get a brief idea on the new amendments to the Commercial Companies Law of UAE.
The Legislations regarding them are:
FEDERAL LAW NO (2) OF 2015, THE COMMERCIAL COMPANIES LAW
FEDERAL LAW NO (19) OF 2018 , FOREIGN DIRECT INVESTMENT
FEDERAL LAW NO (26) OF 2020, THE AMENDMENT LAW CCL
UNITED ABAR EMIRATES is a country and a business hub with vast opportunities for investors. It had several sectors onshore and offshore. The country has recently come up with a mind - blowing offer to expatriates to jump high in the fallen times of COVID 19.
The latest decree in the year 2020, The FEDERAL LAW NO (26) OF 2020, THE AMENDMENT LAW - CCL has been enabled even the company law to be amended and various other clauses with effective dates on March 31st, 2021 and Jan 31st 2022.
The FEDERAL LAW NO (19) OF 2018 , Foreign Direct Investment Law , has described 122 activities with 3 sectors in its Positive List; namely- Agricultural Sector, Manufacturing Sector and Service Sector, in which a foreigner can be a 100% owner.
STEPS TO BE FOLLOWED FOR GETTING THE LICENSE.
- 01.Choose Activity from the Positive List.
- 02.Find legal form – i.e. Single ownership or Private joint stock company
- 03.Meet capital requirement, as specified in the sectors.
- 04.Apply for initial approval from the Committee
- 05.Reserve Trade name.
- 06.Getting approvals from different entities/ Emirates depends upon the activity..
- 07.Joining Proof of Tawteen partnership club to be submitted to the Committee.
- 08.Opening of bank account and deposit of 20% of capital payment.
- 09.Payment of service Fee and acquiring License.
- 10.By getting all the approvals from the Committee, you are eligible to be a complete owner of your business in UAE. Though, each activity will be completely scrutinized by the authorities in order to ensure the smooth functioning.
Any disputes arising out of this Tax Law shall initially be brought before the Federal Tax Authority. If the decision of the Authority is unsatisfactory, there shall be a Tax Dispute Resolution Committee, which shall look into the matter in detail. The decision of the TDRC can also be challenged before the Civil Courts of UAE according to the Civil Procedures Law of the State.
