Sharjah 24: Sharjah Economic Development Department (SEDD) organised a virtual workshop entitled “Foreign Ownership of Companies”, attended by a number of officials of federal authorities in the field of licensing.
The workshop presented the available legislative framework and the legal forms for foreign ownership. This came in accordance with Federal Decree Law No. (26) of the year 2020 amending some provisions of Federal Law No. (2) of 2015, regarding the Commercial Companies Law, adding articles that foreign nationals will be allowed to establish and to own 100% of commercial companies.
Dr. Mudathir Abdullah, Legal Advisor at SEDD, conducted the workshop that included an explanation about the activities available for foreign ownership in a group of sectors including more than 1,200 commercial and industrial activities.
Dr. Abdullah clarified which activities have a strategic impact and require an approval from the organising entities, as well as the activities restricted to Emirati citizens, which were limited to 10 sectors. The 10 sectors included real estate, e-commerce, carrying out economic activities in mobile vehicles and trucks, legal consultations, business services, business centers, taxis, transporting passengers by public transport, labor supply, and “Eitimad” licenses.
The Legal Advisor explained the procedures for establishing foreign ownership companies, the procedures for establishing branches of foreign companies, and the mechanism for converting existing companies into foreign ownership companies. In addition, he answered and clarified all questions and inquiries form participants.
HE Sultan Abdullah bin Hadda Al Suwaidi, SEDD Chairman, said that the workshop came within SEDD’s efforts to raise awareness on the updated legal legislation for commercial companies, between business sectors and federal entities, related to licensing. Also, the workshop aimed to inform them on the latest procedures, identify their inquiries and address any obstacles they may face in order to ensure the application of licensing systems easily and in a manner that achieves the desired objectives.
HE Sultan Abdullah bin Hadda Al Suwaidi stressed that the Department aims to provide an ideal climate for investment and business continuity that contributes to encouraging companies to enhance their work, facilitating and attracting more foreign direct investments and enhancing the competitive business environment. Likely, he added that it is important to achieve a number of goals to encourage investment in Sharjah.
HE Sultan Abdullah bin Hadda Al Suwaidi concluded that SEDD continues to develop its services in a way that enhances all economic sectors and works with all local and federal authorities and institutions to provide and develop more services.
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