Over the years, UAE has oftentimes amended its commercial laws as a way of promoting a more investment-friendly country. From the revamping of its visa regulations, to the latest changes in the commercial law that was first announced in November, 2020 and has now been implemented into force on June 1, 2021. 

The UAE government has confirmed that the new law will allow full ownership of onshore companies in the UAE.

Entrepreneurs and investors have always been disgruntled of having to share a large chunk of their business with a local partner, with that out of the way, investors will have a sense of control and the country will see an increase in the number of foreign investments.

The new law will eliminate the barriers investors face when setting up an onshore business, small and medium sized businesses will greatly benefit from this as it will increase their operating cost and provide an additional capital to finance their business growth.

According to the Minister of Economy, Abdulla Bin Touq Al Marri “The  amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE efforts to facilitate doing business”

UAE aims to drive it’s economy to achieve a greater height by inviting more investors to the UAE market..

Setting up an onshore company is becoming easier and less costly and those in the manufacturing and technology sector will experience a great impact with the new regulation.

The freezone provides more advantages as compared to onshore such as the absence of custom duties on import or export. The full ownership law will steer up more investment for onshore companies set up.

Setting up a business in the UAE can be complicated and yet easy, but at Business space, it’s our job to make it easy and stay updated to continue to provide expert advice on what works best for your business.

What sector are you looking to invest in? Speak to our consultants, let them guide you.