Guide for Foreign Companies Setting up in the UAE

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Analysis

Marisa Finnerty looks at the most commonly used corporate structures available to foreign companies seeking to set up in the UAE

In brief:

  • Pursuant to the UAE Companies Law, the maximum foreign ownership permitted in UAE limited liability companies is 49%.

  • Companies which are established in UAE free zones are permitted to be 100% foreign owned but are subject to certain trading restrictions of which investors should be aware.

  • The corporate structure which is ultimately adopted by the foreign company will depend on its specific business requirements.

There are a number of options available to foreign companies looking to establish a presence in the UAE.

The most popular corporate structures usually adopted by foreign companies include:

  1. UAE (non free zone) based companies. The most common type is the limited liability company;

  2. free zone based entities; and

  3. branch offices of foreign companies.

UAE (non free zone) - Limited Liability Company (LLC)

LLCs are widely used for foreign companies wishing to conduct commercial activities in the UAE.