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Foreign Direct Investment License UAE

    foreign direct investment license uae
    Foreign Direct Investment License

    Why foreign direct investment license in Required in UAE ?

    In accordance with the Federal Decree-Law No. 19 of 2018 on Foreign Direct Investment (The “FDI Law”), aims to promote and develop investment environment and attract the Foreign Direct Investment in line with the UAE’s development policies has announced list of activities that is eligible in industry such as Agriculture (19 activities), Manufacturing/ Industrial license (51 activities) & Services (52 activities), which will allow in obtaining a license with 100% foreign ownership in mainland, UAE. For a FDI company the legal form shall be limited to a Limited Liability Company (LLC), including sole proprietorship company and private joint stock company, including sole proprietorship company.

    Requirements for an Foreign Direct Investment License in UAE

    Application form for FDI license, should be duly filled and signed

    A copy of current business license

    Audited financial statements for UAE entity for the previous year

    Growth plans for the next 3 years (in terms of investment, employment opportunities, new activities.)

    In situation, if the application form does not fully represent the company’s contribution to UAE’s economy, it is required to submit a cover letter or power-point presentation which will better highlight the company’s standing in UAE.

    Few things to consider Foreign Direct Investment

    • Share capital requirement – Depending upon the sector and activity of the business, share capital requirements can differ between 2 and 100 million AED. Sectors, for example, related to Hospital activities, will require a Share Capital of 100 million AED. For other sectors such as Manufacturing, Share Capital requirements differ depending on the type of manufacturing activity. For example, the Manufacture of Sports equipment would require 3 million AED share capital, whereas Manufacture of Machinery equipment would require 100 million AED share capital.
    • Use of new Technology
    • Recognition of a high added value
    • Contribute to Research & Development
    • Meet the requirements of UAE Licensing entities
    Foreign Direct Investment

    Steps for new licensing a FDI project as per the announced list of activities

    • Select Business Activity
    • Submit the application for FDI project licensing together with the MOA & AOA
    • Fix the registered (nominal) capital
    • Reserve the trade name
    • Apply for and obtain initial approval
    • Select the business location
    • Obtain approvals from relevant authorities that are concerned with the FDI company’s activity
    • Join Tawteen partner’s club (a membership with the MOHRE)
    • Obtain final license
    • Proceed with an opening of bank account for the FDI company
    • Capital payment – The Foreign Investor shall submit the proof that at least (20%) of the capital of the company has been deposited into the company’s account with any banks in the UAE.
    • Registration of the license with Ministry of Economy (MOE)
    • Registration with Chamber of Commerce
    • Notice of commencement of Business or Actual Production – The Foreign Investor shall notify the Competent Authority and Licensing Authority in writing of the date of commencement of business or actual production within (5) five business days from the installation and setting up of fixed assets for the purposes of the Project.
    Foreign Direct Investment

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