UAE Removes The Need for Emirati Majority Shareholders
Contributed by More Group
08 April, 2021
The United Arab Emirates has as of last December, eradicated the need for companies to have Emirati shareholders in a major change to foreign ownership laws. The change is intended to attract investment into their economy which is seen to be reeling from the coronavirus and a decline in oil prices.
The amendments to the 2015 commercial companies' law remove the requirement that a company must be chaired by an Emirati national and for the board of directors to be majority Emirati. These changes have been issued by the country's president. However, certain sectors such as oil and gas, transport and utilities and strategic areas are exempt.
Forming a company in the UAE can be beneficial due to its highly attractive tax system. A UAE Offshore company benefits from zero taxes (no corporate, personal or capital gains taxes), almost no deductions on wage payments, Double Taxation Treaties in effect with over fifty countries and the UAE grants specific tax exemptions ranging from fifteen to fifty years to companies operating in the Free Zones. As well as this, you are granted an Investor Residency Visa (two plus dependants), there's no foreign exchange controls, trade barriers or quotes and no restrictions on repatriation of fund.
The rules came into effect on 1st December 2020, and are the latest in a series of changes aimed at loosening business activity regulations in the UAE, where non-Emiratis account for more than 80% of the population. The amendments are designed to reduce costs for companies and attract foreign entrepreneurs often put off by regulations stating that 51% of their business must be handed to locals in order to operate on the UAE mainland.
Due to their international presence, More Group's financial experts are poised for these changes and the opportunities they will bring their clients. For unrivalled advice and support, contact More Group to find out how these changes can benefit you on 020 7648 8950 or visit www.moregroup.com.
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