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36 questions

Company Formation / Licensing

Can a foreigner own 100% of an LLC in the UAE mainland?

Jun 26, 2026·1 answers
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For many mainland business activities, foreigners can now own 100% of a UAE LLC. This followed reforms to the UAE Commercial Companies Law that removed the long-standing requirement for a UAE national to hold the majority of the shares for a wide range of commercial and industrial activities. However, full foreign ownership is not automatic for every activity: certain strategic-impact sectors and some professional activities can still carry specific conditions, and the list of eligible activities is set and updated by each emirate's economic department, such as Dubai's Department of Economy and Tourism. Free zones, separately, have always permitted full foreign ownership within their jurisdictions. Because eligibility depends on the exact activity code and emirate, you should confirm whether your chosen activity qualifies for full ownership before registering, rather than assuming. The official UAE government portal explains the ownership framework. For tailored confirmation or shareholder agreements, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

Do I still need a local sponsor for a mainland LLC in the UAE?

Jun 26, 2026·1 answers
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For most commercial and industrial mainland activities, a UAE national sponsor or majority local partner is no longer required, following reforms to the UAE Commercial Companies Law that allowed full foreign ownership for many activities. This changed the older model in which an Emirati partner typically held a majority shareholding. That said, the change is activity-specific: some professional activities and certain regulated or strategic sectors may still involve a local service agent or particular conditions, and each emirate's economic department maintains the list of activities eligible for full foreign ownership. A local service agent, where required, generally provides administrative liaison and does not hold equity or share in profits. Because the rule depends entirely on your activity and emirate, verify your specific situation with the licensing authority such as Dubai's Department of Economy and Tourism before assuming no partner is needed. For agreements with any agent or partner, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

How do I choose the right business activity for my UAE trade licence?

Jun 26, 2026·1 answers
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Lawyer
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Your business activity determines your licence type, any special approvals you need, and sometimes your ownership options, so choosing accurately matters. UAE economic departments and free zone authorities maintain official lists of approved activities, each with a code, grouped under commercial, professional, industrial, and other categories. To choose well, define exactly what your business will do, then match it to the closest approved activity or activities; many businesses register more than one related activity under a single licence where the rules allow. Some activities are 'regulated' and require approval from an external authority (for example certain financial, health, education, or legal services) before the licence is issued. Picking an activity that does not match your real operations can cause compliance issues later, so it is worth confirming the correct codes with the licensing authority. Because the lists and conditions are updated periodically, verify the current options directly. For help interpreting regulated-activity requirements, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

How do I set up a branch of a foreign company in the UAE?

Jun 26, 2026·1 answers
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A foreign company can open a UAE branch — an extension of the parent, not a separate legal entity, so the parent generally remains responsible for its obligations. A branch usually carries out activities consistent with the parent's business and, depending on activity and emirate, may need a local service agent. Setup typically involves a parent board resolution, attested and legalised constitutional documents, appointing a manager, approvals from the relevant authorities (for mainland branches, the economic department and sometimes federal approval), then registration and licensing. Free zones run their own branch routes. Confirm requirements with the licensing authority. Full step-by-step guide: [Branch of a foreign company in the UAE](/blog/branch-of-foreign-company-uae).

Company Formation / Licensing

How many shareholders can a UAE LLC have?

Jun 26, 2026·1 answers
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A UAE LLC can be owned by more than one shareholder, and under the Commercial Companies framework an LLC may also be formed as a single-owner company, where one natural or legal person owns the whole entity. There is a general upper limit on the number of partners an LLC may have under the law, above which a different corporate form would be needed, but the exact figure should be confirmed against the current Commercial Companies Law rather than assumed, as company-law provisions are periodically updated. Shareholders can be individuals or corporate entities, and their ownership is reflected in the shares recorded in the Memorandum of Association. The structure you choose affects governance, decision-making, and profit distribution, all of which are set out in the MOA. Because the precise minimum and maximum can change, verify the current limits with the relevant economic department. For drafting a shareholders' or partnership arrangement that reflects the right ownership split, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

How can I start a business in the UAE as a foreigner?

Jun 26, 2026·1 answers
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Lawyer
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Foreigners can and routinely do start businesses in the UAE, either on the mainland or within a free zone. The first decisions are your jurisdiction (mainland vs a specific free zone), your business activity, and your legal structure such as an LLC. On the mainland, companies are licensed by the emirate's economic department under the UAE Commercial Companies Law, and recent reforms have opened many activities to full foreign ownership, removing the previous requirement for an Emirati partner in those cases. Free zones have long allowed full foreign ownership and run their own licensing through each free zone authority. The general path is: pick the activity and jurisdiction, choose the structure, reserve a trade name, obtain approvals, secure premises, and collect the licence, after which you can apply for residence visas. Because eligibility, ownership rules, and required approvals depend on the activity, confirm specifics with the licensing authority. You can compare verified UAE legal professionals on LEXAI to help choose a structure and review documents.

Company Formation / Licensing

What is the difference between a civil company and an LLC in the UAE?

Jun 26, 2026·1 answers
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Lawyer
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A civil company and an LLC are different legal structures suited to different kinds of business. A civil company is generally used for recognised professional activities, such as consultancy, engineering, law, accounting, or medicine, and is owned by professionals practising that profession. An LLC (Limited Liability Company) is a commercial structure where the owners' liability is generally limited to their share in the company's capital, and it is commonly used for trading and commercial activities. A key practical distinction is liability and the nature of the activity: civil companies are tied to professional practice and may carry different liability exposure, while LLCs offer limited liability for broadly commercial operations. Ownership and local-agent requirements can also differ between the two, and some civil-company setups may involve a local service agent depending on the activity and emirate. Because the right choice depends on your profession and goals, confirm the available structures with the economic department. To compare the legal implications for your situation, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

Can I renew my Dubai trade licence myself, and what documents do I need?

Jun 10, 2026·1 answers
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Lawyer
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Yes — an owner can handle a Dubai trade licence renewal directly, and for a straightforward mainland licence it is largely the form-filling exercise you suspect. Renewals run through the Department of Economy and Tourism, mostly online via the Invest in Dubai platform, and no rule requires a PRO firm. What you generally need: your current licence details, a valid Ejari registration for the business premises covering the renewal period, and renewed approvals from any external authority if your activity is regulated — health, food, transport and education activities are common examples. The documents that trip people up are usually not the forms but the prerequisites: an Ejari that has expired or does not match the licence address, unpaid fines sitting on the licence or the company, expired passports or Emirates IDs for partners, and external approvals that take longer than expected. Check those a few weeks early and the renewal itself is normally quick. If your structure is more complicated — multiple partners, pending amendments, inherited fines — a PRO fee may buy genuine convenience, but it is a convenience, not a requirement. If anything unusual surfaces on the file, a licensed UAE corporate lawyer can untangle it well before the expiry date.

Company Formation / Licensing

How much trouble am I in if my Dubai trade licence expired months ago?

Jun 10, 2026·1 answers
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Lawyer
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You can almost certainly still recover the licence. First, request a statement of everything owed from the Department of Economy and Tourism — late-renewal fines on the licence itself, plus any immigration or labour penalties if you sponsored staff. Renewal means paying the accumulated fines plus the renewal fee, and the company keeps its history, name and bank account. Cancellation is not a free exit: outstanding fines generally must be cleared first, and an abandoned licence can block future company setups or visa applications. Ask whether a fine-reduction or waiver initiative is currently running — timing can change the maths. Full step-by-step guide: [Trade licence renewal in the UAE](/blog/trade-licence-renewal-uae).

Company Formation / Licensing

How do I cancel my trade licence in Dubai when employees still have visas under it?

Jun 10, 2026·1 answers
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Lawyer
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You have been told correctly: the visas come first. The usual sequence for closing a Dubai company with sponsored staff runs like this. Start with a shareholders' resolution to wind up, since later steps will ask for it. Then settle each employee's end-of-service entitlements and cancel their work permits through MOHRE, followed by their residence visas through immigration — an employee who is overseas can normally be cancelled while outside the country through the standard process, so that need not block you. Once no visas remain under the establishment card, move to clearances: utilities, telecoms, any customs code, and confirmation that no fines are outstanding. Limited liability companies generally also need a liquidator appointed and a public notice period before final cancellation, so the licence cancellation at the Department of Economy and Tourism comes last, after the notice period runs and the clearances are in hand. Two practical warnings: do not cancel the establishment card while any visa still sits under it, and do not let the licence expire mid-process, because accumulating fines complicate every later step. A lawyer experienced in UAE company liquidation can sequence the file so nothing gets stuck halfway — which is exactly the trap you are sensing.

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