1,000+
DET activities now open to 100% foreign ownership
Mainland ownership, explained
Do You Need a Local Sponsor in Dubai?
For most mainland activities, no. Since Federal Decree-Law 26 of 2020 you can own 100% across 1,000-plus activities.
- Reviewed by senior DET mainland advisors.DMCS Mainland Desk, Dubai.
Start here
The rule changed in 2021, and most advice online is still out of date
Federal Decree-Law No. 26 of 2020 removed the 51% local partner for most activities, effective 1 June 2021.
At a glance
0%
Equity a sponsor takes on a standard mainland LLC
2021
Year Decree-Law 26/2020 scrapped the 51% rule
9%
Corporate tax above AED 375,000 profit, sponsor or not
Sponsor vs no sponsor
When you still need one, and when you do not
Three structures still exist on the mainland, and the law names which is which.
3
ownership scenarios on Dubai mainland
Ready to claim these advantages for your own company?
Talk to a specialistCommercial and industrial LLC: no sponsor
Trading, e-commerce, manufacturing, contracting, logistics and most service LLCs sit on the 100% ownership list under Decree-Law 26/2020. You hold all the shares, you control the bank account, you make every decision. No UAE partner is required or involved.
Strategic-impact activities: partner still required
Activities of Strategic Impact, defined under Cabinet Decision No. 55 of 2021, still need a 51% Emirati shareholder: defence, oil and gas, banking, insurance, telecoms, hajj services. Rare for SMEs, and DET confirms it against your exact activity code.
Professional sole establishment: local service agent
A 100% foreign-owned professional firm (consultancy, design, IT services) often uses a Local Service Agent (LSA). The LSA takes no shares and no profit. They are a paid liaison for government paperwork on a fixed annual fee, not a partner, and they cannot block your bank account, remove you as manager, or claim revenue.
The old 51/49 trap is gone
Before 2021, investors signed side agreements to claw back the 51% a sponsor legally held. A poorly drafted shareholders agreement left you exposed if the sponsor turned hostile: they could legally claim profit or remove you. With 100% ownership you simply do not face that risk on eligible activities.
A sponsor never improved your tax position
Corporate tax is 9% on profit above AED 375,000 regardless of who owns the shares, set by the Federal Tax Authority. Small Business Relief keeps it at 0% while annual revenue stays under AED 3 million. Ownership structure does not change either threshold.
Free zone is the other 100% route, and we will say so
Free zones always allowed full foreign ownership, but cannot trade directly in the local UAE market without a distributor or a mainland branch. If you sell to UAE customers or bid for government work, a mainland DET licence is usually cleaner.
Avoid these
Where people still get the sponsor question wrong
Most sponsor mistakes come from following advice written before 2021, or from an agent who profits from the old model. These are the ones we see most.
Outdated advice
Assuming you must give 51% to a UAE national
Articles, forums and even some agents still describe the pre-2021 rule, ignoring Decree-Law 26/2020. Acting on it means you hand away control and profit you were never required to share.
Do this instead: Confirm your specific DET activity code is on the 100% ownership list before discussing any partner. For most commercial and industrial activities, it is.
Hidden fees
Paying a nominee sponsor fee you do not owe
Some setups bundle a nominee sponsor fee of AED 10,000 to AED 50,000 a year into the package for an activity that no longer needs one. It is pure margin for the agent.
Do this instead: Ask in writing whether your exact activity requires a sponsor or LSA at all. If the answer is no, that line item should read zero.
Confusing the terms
Treating a local service agent like a shareholding sponsor
An LSA on a professional licence takes no equity and no profit. People panic thinking the LSA can claim the business or freeze the bank account. They cannot, the role is purely administrative.
Do this instead: Get the LSA agreement in plain terms: fixed annual fee, no shares, no signing authority, no claim on the bank account, profit or assets.
Side agreements
Relying on a side letter to take back a sponsor's shares
If your activity genuinely still needs a partner under Cabinet Resolution 55/2021, an unregistered side agreement reclaiming their stake has historically been hard to enforce in UAE courts.
Do this instead: If a partner is truly required, structure it properly with corporate counsel, or pick a 100% eligible activity or free zone route instead.
Real results from our clients
What our clients say about working with us
Real Google reviews from founders we have set up and kept compliant on the Dubai mainland.
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Abdul Sami3 months ago
Thank you to the team for supporting us with our company setup. Our case was not straightforward, especially the bank account opening, but they stayed committed and got it done.
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Paolo Chua8 months ago
I had a great experience opening a corporate bank account. The process was smooth and efficient. The staff were friendly, professional, and explained everything clearly.
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Amy Elliott Dunne4 months ago
The accounting and bookkeeping service has been exceptional. Attention to detail is impressive, and communication is always clear. Tasks are handled promptly.
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Rashed Al Falasi5 months ago
They confirmed our activity grouping before filing and flagged an issue the bank would have raised. Licensed in under two weeks with no surprises on the invoice.
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Marwa Khalil2 months ago
We came for a mainland LLC and stayed for renewals and PRO work. The same team answers the phone after the license is issued, which is rare here.
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