The new law emanated by the UAE government provide the opportunity to possess 100% shares ownership for companies on UAE mainland from 1st December 2020, with the exception of some sectors, which continue to follow previous amendments under the Commercial Law n.2 2015.


Until today, it was possible to constitute an LLC(Limited Liability Company) in mainland only if the majority of the shares (51%) were given to a national Emirati.

Instead, for those who desired to have full ownership of the company, they had to constitute the society in the free trade areas (Freezone), which are subject to different regulations and can trade only with other companies in the Freezone or outside UAE.

Legal Structures

The new decree’s issue, Cabinet Resolution n.16, 2020, expresses a list of new commercial terms which allows companies and individuals to open a society with 100% full ownership on the condition they meet the terms and requirements written on the amendments, which include, for example, the use of modern technology and sustainable practices in the case of a manufacturing company.

However, some sectors are exempt from the new amendments and will continue to be under the previous terms described in the Commercial Law n.2 2015. The sectors that can benefit by the new commercial facilitations are reported in the “Positive List” while the exceptions are reported in the “Negative List” under the Cabinet Resolution.


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