Legal Structure: Transitioning from Sole Establishment to LLC for Foreign Buyers

Legal Structure: Transitioning from Sole Establishment to LLC for Foreign Buyers

P
Priya Sharma Broker Asked 1 month ago
What is the most efficient legal pathway for a foreign buyer to acquire a Sole Establishment and convert it into an LLC in the UAE?
๐Ÿ‘ 0 Likes

2 Answers

The most efficient pathway for a foreign buyer is to purchase the existing Sole Establishment through a sale agreement, then apply to the relevant DED or free zone authority to convert it into a Limited Liability Company. This involves updating the trade licence, obtaining approvals, and registering the new LLC structure while complying with ownership and capital requirements.
N Answered by Neil Walter | 2 weeks ago
๐Ÿ‘ 0
The most efficient pathway for a foreign buyer in the UAE is to first acquire the Sole Establishment (which is usually owned by a UAE national) through a local sponsor or assignment agreement, and then convert it into an LLC by partnering with a local shareholder or leveraging the new 100โ€ฏ% foreign ownership reforms in certain Free Zones or Mainland sectors. Emotionally, it can feel like navigating a maze thereโ€™s paperwork, approvals, and approvals from the Department of Economic Development but doing it step by step gives the buyer full operational control and legal clarity, turning a locally bound business into one you can truly grow and scale.
M Answered by M.Arham | 1 week ago
๐Ÿ‘ 0

Please log in to post an answer.