How can a foreign business can own a UAE Company
Corporate Ownership Share Structure in UAE companies in Dubai, Abu Dhabi, Sharjah, Al Ain, Ajman, Ras Al Khaimah, Umm Al Quwain, Fujairah.
If your foreign entity wants to own a UAE company directly—meaning the foreign company itself is listed on the UAE license as the owner, there is a lengthy and complicated process to follow.
By making your foreign company the direct parent owner of a UAE branch or subsidiary, you maintain full control over your Middle Eastern assets.
Choose Your Structure: Branch vs. Subsidiary
When a foreign company owns a UAE entity directly, it usually takes one of two forms:
- Foreign-Owned Subsidiary (LLC): A separate legal entity where 100% of the shares are owned by the foreign parent company.
- This is the most popular route for “Mainland” setups that is accepted by the Department of Economic Development in all Emirates in UAE, that 99% of foreign companies opt for.
Verified Marketplace
Looking for Ready-Made Businesses or Shelf Companies in UAE?
Browse our live master catalog of 700+ verified UAE entities with active corporate bank accounts, zero liabilities, and 24–48 hour legal ownership transfer.
- Branch of a Foreign Company: The UAE office is a legal extension of the parent company. It does not have a separate legal personality.
How to attest foreign company documents for use in UAE
The most vital step for direct ownership is the foreign documents attestation process, because the shareholder is not a person but a international legal entity, the UAE authorities need verified proof that the parent company exists and is authorized to invest.
Required Documents (Must be translated into Arabic):
- Certificate of Incorporation (or Trade License) of the foreign company.
- Memorandum & Articles of Association (MOA).
- Board Resolution: A formal decree from the foreign company’s board stating the intent to open/acquire an UAE company and appointing a Manager/Legal Representative.
- Power of Attorney (POA): Authorizing a person in the UAE to sign documents on behalf of the foreign parent.
The Attestation Process: Notary Public (Home Country) → Ministry of Foreign Affairs (Home Country) → UAE Embassy (Home Country) → Ministry of Foreign Affairs (UAE).
Step-by-Step guide on How a Foreign company can SETUP A COMPANY and be the corporate shareholder in UAE
Step 1: Legalize the documents of the in the country of incorporation and in UAE
The very first part of the process starts with preparing the necessary documents for legal attestation and translation.
The relevant company documents of the parent company, needs to certified, translated and legalized, before UAE governmental authorities can accept these company documents and legally recognize the foreign business, as the corporate shareholder of a company in UAE.
Step 2: Activity Selection, Trade Name, Apply for Initial Approval
Apply to the Department of Economic Development (DED) or Free Zone Authority. At this stage, you submit the legalized documents of the foreign parent company for review.
Select the business activity in the UAE that aligns with your parent company’s operations and reserve a trade name.
- Usually this is the parent company’s name followed by “(Branch)” or the desired subsidiary name.
- It is also possible to set up a subsidiary with an entirely different name and business activity than the foreign parent company.
Step 3: Drafting the Local MOA
Memorandum of Association and Articles of Association are drafted with the foreign company name is listed as the 100% shareholder.
Signing company incorporation documents in person, the process cannot be completed remotely.
A representative of your company needs to visit to sign documents in front of government officials.
- If it is inconvenient, BUH Consulting can act as a temporary company representative and sign the documents on behalf of your company.
Step 4: Final Licensing
Once the office lease (Ejari) is secured, the UAE authority issues the Commercial License.
The foreign company is now officially a shareholder of a UAE entity.
Step 5: Apply for Residency Visa
If the foreign company has any parties (shareholder or employee) that used to hold an Emirates ID in UAE, this person can be assigned as a point of contact responsible for applying for visas for the company staff.
If no one associated with the company has previously held an Emirates ID and Residency Visa in UAE, there are 2 solutions:
- Incorporate the UAE company as an individual shareholder, obtain a residency visa for the shareholder/manager and change the ownership to your company,
- Appoint a trusted representative in UAE to represent the company and apply for residency for the manager of the new company
- BUH Consulting can fulfill this role.
Complete How to guide on How a Foreign company can PURCHASE AN EXISTING COMPANY in uAE and become the corporate shareholder
If a foreign company wishes to purchase an existing company, the process is similar with slight differences.
Step 1: Legalize the documents of the in the country of incorporation and in UAE
The very first part of the process starts with preparing the necessary documents for legal attestation and translation.
The relevant company documents needs to certified, translated and legalized, before UAE governmental authorities can accept these company documents and legally recognize the foreign business, as the corporate shareholder of a company in UAE
Step 2: Apply for Shareholder Transfer
After you have identified a company for purchase, apply to the relevant Emirate’s Department of Economic Development (DED) or Free Zone Authority for share transfer.
At this stage, you submit the legalized documents of the foreign parent company for review.
Step 3: Amending MOA and AOA
Company structure, Memorandum of Association and Articles of association all requires amendment.
Signing company incorporation documents in person, the process cannot be completed remotely.
A representative of your company needs to visit to sign documents in front of government officials.
- If it is inconvenient, BUH Consulting can act as a temporary company representative and sign the documents on behalf of your company.
Step 4: Amended License Issuance
After signing the share transfer documents, the foreign company is now the shareholder of the UAE company and the amended license is issued.
Step 5: Apply for Residency Visa
If the foreign company has any parties (shareholder or employee) that used to hold an Emirates ID in UAE, this person can be assigned as a point of contact responsible for applying for visas for the company staff.
If no one associated with the company has previously held an Emirates ID and Residency Visa in UAE, the only solution is to appoint a authorized representative responsible for issuing visas on behalf of the company.
- BUH Consulting can fulfill this role.
Advantages of Corporate Ownership of An UAE business by a Foreign Legal Entity
Simplified Governance: International businesses interested in this type of corporate structuring usually have regulatory compliance to abide by.
Brand Consistency: Operates under the same global identity.
Direct Profit Repatriation: Dividends flow directly from the UAE entity to the foreign parent.
How to Apply For an UAE Residency Visa For The Manager of an UAE Company That Is Owned By Another Company
UAE businesses that is owned by a foreign corporate shareholder, cannot apply for residency visa and Emirates ID the same way that a company that is owned by individual shareholder is able to.
For a newly incorporated UAE company with foreign company in the UAE company’s shareholding structure
1) If any member of the company had an Emirates ID previously, this person can be appointed to apply for UAE residency visa for other staff of the company IN PERSON.
If the above step feasible, additional solutions include:
- Appoint an authorized representative such as BUH Consulting to process the visa application on behalf of the company.
- First register the company register the UAE company as an individual shareholder, obtain residency visa then transfer their ownership to the foreign company.
For a existing UAE company that has been acquired by an international company as the sole shareholder
- For a company that is owned by a corporate shareholder to obtain a residency visa in UAE, the only solution is appoint a representative (friend or anyone you know in UAE that holds or held an Emirates ID previously) and authorized this person to be able apply for a residence visa IN PERSON.
How BUH consulting can assist
Whenever international business is required to be part of shareholding structure of a UAE company, the process gets complicated, cumbersome and time consuming.
BUH Consulting will help you understand your options and suggest the best path forward with hands on assistance.
From company incorporation, obtaining UAE residency visa/Emirates ID and opening the business bank account, our team can assist you with the entire process.
Contact information
For a tailored solution, contact us to discuss about your requirements.
Email: – sam@buh-consulting.com
Phone: +971585086656
Whatsapp: +971585086656
Telegram: BUHConsultingAE