Business
UAE — Business: Limited Company (LLC) & 100% Foreign Ownership
Federal Decree-Law No. 26 of 2020 (effective early 2021) and Federal Decree Law No. 32 of 2021 overhauled the UAE's Commercial Companies Law, removing the previous mandatory 51% UAE national shareholding requirement for mainland LLCs. As a result, 100% foreign ownership is now permitted for mainland LLCs on an activity basis — the majority of standard trading, services, and industrial licenses qualify, with no requirement for a UAE national partner, sponsor, or co-owner. Only 13 strategic sectors retain ownership restrictions in 2026 (e.g. specific defence activities, oil and gas exploration, certain media/publishing, Hajj/Umrah services, blood banks). Foreign investors need valid passports, Emirates ID (if UAE residents), proof of business address, and — for certain activities — a detailed business plan and sector-specific initial approval certificates.
Key facts
- 100% foreign ownership of mainland LLCs is now permitted (since 2021 reforms), removing the prior 51% UAE-national shareholding rule.
- Ownership is granted on an activity basis — most trading, services, and industrial licenses qualify.
- Activities with a "strategic impact" can still be restricted: the Cabinet defines them and sets licensing controls, which may limit foreign ownership. Check the current list before assuming 100% ownership.
- Required documents: passport, Emirates ID (residents), proof of business address, business plan/initial approvals (certain sectors).
Required documents
- Passport
- Emirates ID (residents)
- Proof of business address
- Business plan (certain activities)
- Sector-specific initial approval certificates
Common mistakes
- Assuming 100% foreign ownership applies universally — activities the Cabinet classes as strategic impact may still require local partnership or additional approvals.
- Not verifying activity-level eligibility before assuming an LLC qualifies for full foreign ownership.