How to open a DED company on the mainland with 100% foreign capital

How to open a DED company on the mainland with 100% foreign capital

Author: Irina AlMutawa May 3, 2021

Before applying for a DED license in Dubai, the business owner must first decide where you would plan to do business, in the UAE, mainland Dubai, or in the Freezone territory. To start a business in the UAE, you need to know and understand the terms and conditions set out by DED Dubai. Here's what you need to know and understand:

Important considerations at opening a DED company

  1. Certainly Local Partner / Local Service Agent: Companies operating in the Emirates need the presence of a UAE citizen who is either a local partner (with a stake of at least 51%) or a local service agent (without participation).

  2. The role of the local partner and local agent in your business: The signature of the local partner / service agent is important in matters related to government applications and maintaining communication with government authorities. A foreign investor can singly control business operations without any involvement of a local partner / service agent, if, by agreement with a local citizen, he receives a power of attorney (a very important point, mostly local partners do not give a power of attorney, which leads to a slowdown in the progress of your business and loss of money and time resources)


Do I need special permissions to open a DED license?

On the territory of the United Arab Emirates, including Dubai, it is allowed to conduct a variety of commercial activities. However, some activities are regulated by the relevant government authorities and therefore require prior approval. For example, real estate licenses require the approval of the Real Estate Regulatory Authority ( RERA), educational licenses require the approval of the Knowledge and Human Development Authority ( KHDA), hospitals / clinics / medical licenses require the approval of the Dubai Health Authority (DHA), etc. This is our job and we do it for you, in the best interests.


How do you (a foreign citizen) have the opportunity to own your business by 100%?

In two cases:

1. if you create a professional services company (Foreigners can fully own a professional company. Thus, a professional company only needs a local service agent, which can be an individual person (a citizen of the UAE) or a corporation (a company from the UAE, where all its partners are citizens of the UAE). The local service agent does not own shares in the company. However, the local service agent receives a fixed annual fee for providing services to local authorities.) A foreigner can also obtain a power of attorney from a local service agent to perform all government functions, if necessary.

2. If you already have an operating company in your country, then opening a branch may be the best solution to expand your business in the UAE while maintaining 100% of ownership. To open a branch, it is not required that a citizen of the country be a shareholder. Thus, you can choose a local service agent as a professional company. However, the branch must do the same business as the parent company. If the parent company can engage in multiple activities, then the subsidiary can take over all or some of them in the UAE.

3. You can open your company on the territory of Freezone this is our job and we do it for you, for the good.







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