New law allows 100% ownership of businesses by foreign nationals

New law allows 100% ownership of businesses by foreign nationals

ABU DHABI — President of the United Arab Emirates Sheikh Khalifa bin Zayed Al Nahyan, has issued a law that will allow companies to be completely owned by foreign nationals, state news agency WAM reported on Monday.According to the new law, which will come into effect on Dec.1, 2020, companies will no longer need to have an Emirati sponsor.The new law mostly focuses on the regulation of provisions of setting up companies with limited liability shareholding. Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister of the UAE and Ruler of Dubai, announced the amendments to the law.Foreign shareholders were earlier limited to owning a maximum 49 percent in a 'limited liability company' (LLC) operating as an onshore UAE business, requiring an Emirati individual or 100 percent Emirati-owned company to hold the balance 51 percent share as a local sponsor.The amended law allows natural and legal persons to establish companies without the need for a specific nationality. The law, however, will not