Starting a business in the UAE has become much easier for foreign investors. Thanks to recent reforms, many activities now allow 100% foreign ownership in the UAE, removing the need for a local sponsor.

What is 100% ownership?

100% foreign ownership means you can fully own your UAE-based company without needing a UAE national as a partner. In the past, expats could only hold up to 49% ownership in mainland businesses, with 51% reserved for local sponsors. This limited control and profit share. Now, selected business activities are open to full foreign ownership, allowing you complete control over your company.

This shift benefits investors by offering:

• Total decision-making authority
• Full profit control
• No dependency on local sponsors
• Greater trust from global clients and partners

Is Full Ownership Legal in 2025?

Yes, 100% ownership is fully legal and widely supported by UAE law as of 2025. This reform comes under the Commercial Companies Law, which was updated by the Ministry of Economy to attract more foreign direct investment (FDI). The law now allows investors from almost all countries to own mainland companies fully, without a UAE partner, if the business activity qualifies.

To be eligible:

• Your activity must fall under the approved list
• You must meet any licensing or capital requirements set by the Department of Economic Development (DED)
• Strategic sectors (like oil and gas) may still have restrictions

Key Benefits for Investors

• Setting up a 100% foreign-owned company offers multiple advantages, especially in 2025:
• No local sponsor needed, reducing legal complications
• Complete control over operations, finances, and decisions
• Easier profit repatriation without delays or shared ownership
• Tax advantages, including 0% personal income tax and competitive corporate tax
• Strong global image for your business

Activities Eligible for 100% Ownership

Not all businesses qualify for full ownership, but many commercial and professional activities are now open to foreign investors. Below is a simplified view:

Always verify the latest list with DED or a legal expert before applying.

Step-by-Step Guide to Setup

1. Choose Your Activity

Start by clearly defining your business model. This includes what services or products you offer. Then check if your chosen activity is on the approved list for full ownership. For example, IT services, consulting, and trading often qualify.

2. Select Jurisdiction

Decide whether to register in the mainland or a free zone.

• Mainland allows you to do business across the UAE
• Free Zone offers 100% ownership too, but limits trade within the UAE unless a local distributor is used

Choose mainland if you want full market access.

3. Reserve Your Trade Name

You’ll need to pick a unique trade name and get it approved by the DED. Keep it professional and relevant to your business type. Avoid restricted words or religious terms.

Tips for fast approval:

• Submit 3–5 name options
• Avoid using country names or well-known brands

4. Prepare Your Documents

You’ll need to gather and submit a few basic documents:

• A passport copy of all shareholders
• Memorandum of Association (MoA)
• Business plan (if required)
• No Objection Certificate (NOC) if you’re on a UAE visa under another sponsor

5. Apply for Initial Approval

Submit your application through DED (for mainland) or your selected Free Zone authority. This is a preliminary check confirming you’re legally allowed to start the business. You’ll also need to pay an initial approval fee.

6. Rent Office Space

To get your trade license, you must lease a physical office.

• Ejari registration is mandatory for mainland licenses
• Some Free Zones offer flexi-desks or virtual offices

Choose what fits your budget and scale.

7. Get a Business License

Finally, apply for your official trade license. It could be:

• Commercial: For trading
• Professional: For services
• Industrial: For manufacturing

Processing can take a few days to a couple of weeks, depending on your setup.

Common Mistakes to Avoid

New investors often run into problems that can delay or complicate setup. Avoid these common issues:

• Picking a business activity not eligible for full ownership
• Choosing a Free Zone when mainland access is needed
• Underestimating total setup costs
• Ignoring compliance and visa requirements

Full Ownership for Foreign Investors

In 2025, the UAE made it easier than ever for foreign investors to fully own their businesses without needing a local partner. This means you can launch and manage your company in the mainland while keeping 100% control over profits, decisions, and operations. Whether you’re in e-commerce, consulting, manufacturing, or tech, many business activities are now open to full foreign ownership. This gives international entrepreneurs more freedom, fewer legal barriers, and stronger long-term growth opportunities in the UAE market.

Should You Hire a Business Consultant?

Setting up a company on your own is possible, but a consultant can save you time and stress. They’re especially helpful if:

• You’re unfamiliar with UAE laws
• You’re starting from abroad
• You need fast approvals

However, be cautious. Avoid agencies that promise “guaranteed licenses” without checking your activity or offering suspiciously low prices.

FAQs

1. Can I own 100% without being in the UAE?

Yes, many free zones and even mainland setups allow remote registration.

2. Do I still need a UAE partner?

No, not for most approved activities. A local agent may still be needed for some government-related services.

3. Is this valid in all Emirates?

Mostly yes, but rules can vary slightly between Emirates. Always confirm with the local authority.

4. Can I convert an existing company?

Yes, existing companies can update their ownership structure by amending the MoA.

Conclusion

The UAE is now one of the most open markets in the world for foreign investors. With 100% foreign ownership in the UAE now widely available, 2025 is the perfect year to launch or expand your business. Just make sure to follow the legal process carefully, choose the right activity, and get expert help if needed. With smart planning, your UAE business dream can become a reality.