Questions & Answers
How to remove the local sponsor of an LLC company and make it 100% ownership?
In accordance with the new FDI law in UAE - Dubai, what is the (steps/cost/requirements/time frame) to remove the 51% shares local sponsor holder, and make it 100% foreign ownership?
Additional info for accurate answer:
- The foreign owner and the foreign manager are out of the UAE, and the only physical - available person is the PRO person.
- The local sponsor is a company with 4 partners,
So, I wonder if ALL of the partners will be required to attend physically for the procedure of the 100% foreign ownership transfer, or only the PRO and the POA person will be enough?
- The concerned company is an LLC Japanese company for water equipment trading, so it will be under the UAE cabinet positive list, right?
Thank you for contacting Maha Bin Hendi Law Firm for legal assistance.
In regard to your inquiry, kindly note that Federal Law No. 19/2018 on Foreign Direct Investment has been superseded with Federal Decree-Law No. 26/2020 On the amendment of certain provisions of Federal Law No. 2/2015 on Commercial Companies.
A new list of applicable commercial activities has been issued that can be 100% foreign-owned.
However, the requirements to make a company 100% foreign-owned require the consent of all shareholders in the company.
In your case, since a local company owns at least 51% of the company, then the local company’s general assembly must issue a resolution to transfer their shares to the foreigner.
For more information on this matter, and for further assistance in finalizing this process, please contact us via phone or email.
