The UAE government introduced major reforms in 2021 that allow foreign nationals, including UK citizens, to fully own mainland companies without needing an Emirati partner. This effectively ended the traditional model where 51 percent of a company’s shares were legally held by a UAE national acting as a local sponsor. However, the 100 percent foreign ownership rule does not apply to every activity, industry, or emirate. Ownership eligibility depends on the specific commercial activity selected, and in some cases, companies are still required to appoint a Local Service Agent (LSA) — especially in professional license categories. These agents do not own shares but serve as administrative intermediaries, often with limited power but still legal presence in licensing documents. Therefore, while many UK entrepreneurs can now legally "sponsor" themselves by holding 100 percent of their shares, that does not mean the setup is free from local representation or regulatory involvement. It is essential to check the latest Department of Economic Development (DED) activity list to determine whether your business is eligible for full foreign ownership or still requires a UAE national as a service agent.
• Not all business activities are eligible for 100% foreign ownership; check the DED list.
• Even with full ownership, you may need a Local Service Agent for certain professional licenses.
• Full ownership doesn't exempt businesses from UAE's compliance and regulatory requirements.
• Solo founders and consultants have strategic advantages under the new ownership laws.
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Yes, UK citizens can fully own mainland companies in the UAE due to the 2021 reforms. However, full ownership is activity-dependent, and some may still require a Local Service Agent.
Even with full ownership, certain professional licenses may still require appointing a Local Service Agent for administrative purposes without shareholding.
"Management Consultancy," "Information Technology Services," "Marketing Services," and "Project Management" often qualify for full foreign ownership.
The total setup, including trade license issuance and visa processing, can take approximately 5 to 35 working days, depending on document processing and bank account setup.
Yes, certain sectors such as legal, education, oil and gas, or medical services still require Emirati ownership, despite the reform allowing 100% foreign ownership in many areas.
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He leased a small office in Business Bay to meet Ejari requirements, completed all approvals through DED, and sponsored himself for a two-year visa. His license stated sole ownership, with no LSA or UAE shareholder. He later hired two remote employees and sponsored his spouse after six months. Non-residents cannot hold active operational status. Additionally, 100 percent ownership does not exempt you from compliance. You may still need local approvals for signage, tenancy registration, and government interactions. Certain sectors like legal, education, oil and gas, or medical still require Emirati ownership. Yes. All major banks require proof of residency, Emirates ID, and a valid trade license to open a business account. Some banks may also require a physical office lease or Ejari certificate, especially for mainland setups.Here’s what actually happens when you set upNo. Mainland setups often require notarised signatures in person, and some documents (such as Memorandum of Association) must be signed at the notary with either the DED or a legal firm. While some external service providers offer partial remote setup, final steps must be completed on-site. Trade license issuance takes 5 to 10 working days. Visa processing and Emirates ID issuance take another 7 to 10 working days. Bank account setup adds another 7 to 15 working days depending on the bank and your documents. The UAE government introduced major reforms in 2021 that allow foreign nationals, including UK citizens, to fully own mainland companies without needing an Emirati partner. This effectively ended the traditional model where 51 percent of a company’s shares were legally held by a UAE national acting as a local sponsor. However, the 100 percent foreign ownership rule does not apply to every activity, industry, or emirate. Ownership eligibility depends on the specific commercial activity selected, and in some cases, companies are still required to appoint a Local Service Agent (LSA) — especially in professional license categories. These agents do not own shares but serve as administrative intermediaries, often with limited power but still legal presence in licensing documents. Therefore, while many UK entrepreneurs can now legally \"sponsor\" themselves by holding 100 percent of their shares, that does not mean the setup is free from local representation or regulatory involvement. It is essential to check the latest Department of Economic Development (DED) activity list to determine whether your business is eligible for full foreign ownership or still requires a UAE national as a service agent.Common traps that delay or block your setupAssuming all activities are eligible without checking DED’s updated activity list. Also, misunderstanding the difference between full ownership and LSA requirements. Many founders also fail to meet Ejari or tenancy requirements during banking setup, causing delays. Yes. All major banks require proof of residency, Emirates ID, and a valid trade license to open a business account. Some banks may also require a physical office lease or Ejari certificate, especially for mainland setups. Non-residents cannot hold active operational status. Additionally, 100 percent ownership does not exempt you from compliance. You may still need local approvals for signage, tenancy registration, and government interactions. Certain sectors like legal, education, oil and gas, or medical still require Emirati ownership.The detail most people only learn after they’ve moved“Management Consultancy,” “Information Technology Services,” “Marketing Services,” and “Project Management” are common categories eligible for 100 percent foreign ownership. Regulated activities like legal services or oil trading may still require UAE nationals. ADCB, Emirates NBD, RAKBank, and Mashreq support mainland companies with the right documents. You will need to present a physical tenancy contract, license, visa, Emirates ID, and sometimes a business plan or proof of client contracts.How to choose the setup that matches your situationAED 15,000 to AED 25,000 for full mainland setup including license, initial approval, notary fees, Emirates ID, medical, and physical address lease (Ejari). General trading and regulated activities cost more due to security clearance and local authority approvals. AED 12,000 to AED 18,000 depending on license type, Ejari lease renewal, and visa status. If you appoint a local service agent, annual LSA fees may add AED 5,000 to AED 15,000 even though they do not hold shares. Yes. Once your visa is processed under the mainland company, you are eligible for full UAE residency. This includes Emirates ID, access to local banking, ability to sponsor family members, and application for tax residency after meeting physical presence criteria.Final Takeaway: Simplified Business SetupConclude with two natural paragraphs explaining who this setup is ideal for and what matters most in making it work. Reference key decision points like visa, banking, flexibility, and long-term potential. End the section with this exact sentence: This article is not financial advice. Book a call if you'd like a tailored consultation."}
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