“SEDD” organizes “Foreign Ownership of Companies” Workshop
Sharjah Economic Development Department “SEDD” organized a virtual workshop titled “Foreign Ownership of Companies” that was attended by number of officials of federal authorities related to licenses. The workshop displayed 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 by adding articles that allow foreigners to establish companies and own them 100%.
Dr. Mudathir Abdullah, Legal Advisor at SEDD, gave the workshop that included an explanation about the activities available for foreign ownership in a group of sectors, which number are more than 1,200 commercial and industrial activities. He also clarified which activities have a strategic impact and require an approval from the organizing entities, as well as the activities restricted to citizens, which were limited to 10 sectors. These 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. Also, 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.
From his side, HE Sultan Abdullah bin Hadda Al Suwaidi, SEDD Chairman, said that the workshop came within SEDD’s efforts to raise awareness the updated legal legislation for commercial companies between business sectors and federal entities related to licensing. Also, it aimed to inform them of 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 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 such thing aims to achieve a number of goals to encourage investment in Sharjah. Additionally, he pointed out t 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 in order to support them and overcome obstacles that they may face.