أسئلة وأجوبة
Can a foreign holding company own onshore business in Dubai?
I am an expat who purchased a sole proprietorship training company in Dubai onshore. I would like it to be owned by a Holding company outside of the UAE.
Can the Holding own such a company or do I have to change its legal form to something else? And, would that form force me to have lower % ownership?
Thank you.
Going through your question, it seems that you want to transfer the ownership of sole establishment to a foreign holding company.
Holding company can own the share in companies.
Your requirements can be met by the proper corporate restructuring strategy.
Feel free to revert for assistance: 0527520742
Dear Sir
Among the companies, commercial license and professional license are the most employed.
COMMERCIAL LICENSE (strictly for companies involved in Trading, Industrial and Tourism activities) can be a sole establishment (single owner ie. UAE National’s holding 100% ownership) or two or more owners with minimum 51% held by UAE national/100% UAE company (limited liability company).
PROFESSIONAL LICENSE OR CIVIL COMPANIES (strictly for companies engaged in professional or artisan activities and can have 100% foreign ownership either a sole proprietorship or more than one owners are permitted). If it is a single ownership company engaged in professional or artisan activities it is called a Professional License, if it is more than one shareholder it is called a Civil Works Company. You are required to have a UAE national as Local Service Agent (LSA) under a notarized contract. The LSA can also be one of the partners in a Civil Works Company/Professional license.
In your case since the activity is “training”, it appears to be a Professional license (as its single owner). Now you want the holding company, based abroad to be added as a new shareholder…thus conversion to a Civil Works Company. The same is possible PROVIDED the holding company practices the same activities. The percentage of ownership is your discretion. You need to amend the license change legal form from a Professional license to a Civil Work Company.
DOCUMENTS REQUIRED:
1) All documents of the Holding company ie. certificate of incorporation, Memorandum and Articles of Association, Resolution to be a shareholder all notarized legalized, attested, and duly translated into Arabic by a certified translator.
2) Local Service Agent (LSA) contract duly signed by ALL the shareholders along with the LSA before a notary public and the UAE national who will be the LSA his passport copy and family book.
3) Contract of all the shareholders to be signed before the notary public after the application is accepted by the Department of Economic Development - called Civil Works Company Agreement.
I trust I have answered your queries, should you require any assistance to change the legal form, please feel free to contact me.
With best regards
Mrs. Khan
