Mainland Company Ownership Transfer in Dubai: Guide to Process, Costs, and Post Transfer Requirements

Mainland company ownership transfer in Dubai means changing the owner of a business. Companies do this when they sell the business, bring in a new partner, or an owner leaves. Many Dubai businesses do ownership transfers to grow or get new investors.

With the new 100% foreign ownership rules, it is easier for foreigners to own companies. Still, transfer business ownership in Dubai must follow DET ownership transfer requirements and use a proper share transfer agreement UAE.

Mainland Company Ownership Transfer in the UAE?

A mainland business ownership transfer in Dubai is when the ownership of a company changes from one person to another. This can happen if an owner sells their shares, a partner joins, or someone leaves the business.

There are two main types of transfers:

• A share transfer, when the ownership shares of a company are transferred to someone else.
• A licence holder change, where the official company licence is updated with the new owner’s name.

This process is required by law whenever the ownership changes. Following the Dubai mainland share transfer process ensures the transfer is legal. If you need to change company ownership Dubai mainland, you must follow the rules set by the Dubai Department of Economy and Tourism (DET).

What are the Types of Mainland Businesses Eligible for Ownership Transfer

Not all businesses in Dubai can transfer business ownership in Dubai the same way. It really depends on the type of company.  

• Limited Liability Companies (LLCs)  

LLCs can transfer ownership by moving shares around to different partners. This can be a partial transfer, where only some shares are moved, or a complete transfer, where all of the shares are moved to a new owner.  

• Sole Establishments  

In the case of sole establishments, the licence holder has to be updated whenever there is a transfer of the business. Some special approvals may be needed depending on the business activity.

• Civil Companies

Civil companies, often professional firms, can change ownership when a professional partner leaves or joins. These transfers need careful attention to liability rules and professional regulations.

Have Foreign Ownership Laws Changed Ownership Transfers?

Now, foreigners can fully own many businesses in Dubai. The old rule that needed a local partner with 51% shares has been removed for most sectors.

Local service agent requirement UAE is still required for some companies. Even with full foreign ownership, the Dubai Department of Economy and Tourism (DET) requires you to follow the proper steps to make the ownership transfer legal.

Step-by-Step Process to Transfer Shares in Dubai

Step 1:  Create and Prepare a Share Transfer Agreement 

This document explains who the seller and buyer are and how many shares are transferred to protect both the buyer and seller in the share transfer agreement UAE.

Step 2: Get Partner Approvals 

All partners must approve the transfer. This is to make sure everyone is on the same page regarding the change of ownership. For each transfer, a No Objection Certificate (NOC) may be required from current shareholders.

Step 3: Amend the Memorandum of Association (MoA)

The company’s MoA has to be changed to reflect the new ownership. A MoA amendment Dubai records who currently holds the shares and any revisions to the company’s information.

Step 4: Get Company Documents Notarized

All transfer documents must be legally validated. Notarization of company documents in Dubai makes the transfer legally recognized while also protecting both parties.

Step 5: Submit to DET

File the notarized documents with the Dubai Department of Economy and Tourism (DET). DET checks the documents and consents to the transfer of ownership.

Step 6: Update Trade License

After the changes are made, the trade license gets issued with the new owner’s name, which completes the Dubai Mainland LLC share transfer Dubai process and makes the transfer final.

Documents: Changing Ownership on the Mainland

• All owners’ passports.
• The business’s current trade licence.
• UAE share transfer agreement for the selling/transfer of the shares.
• Updated MoA amendment Dubai, showing the new ownership.
• Notarised approvals from the partners or shareholders.
• Power of Attorney if the transfer is remote.

What it Costs to Transfer Ownership On The Mainland

Government/DET

• DET application fee: AED 1,000 – 2,000.
• Trade licence update fee: AED 2,000 – 3,500.

Legal Costs/Notary

• MoA Notarisation of company documents Dubai: AED 500 – 1,500.
• Document attestation fees: AED 300 – 700.

Legal Expenses/Notary Work

• Memorandum of Association Notarisation of company documents Dubai: AED 500 – 1,500.
• Fee for document verification: AED 300 – 700.
• Legal advisory service charges (if relevant): AED 2,000 – 5,000.

Additional Compliance Expenses

• UBO submission: AED 500 – 1,000.
• Updates for VAT registration: AED 200 – 500.

• Other/External regulator approvals (if required): AED 1,000 – 3,000.

All of these costs could differ depending on the complexity of the transfer, the size of the company, and the presence of any professional advice.

Timeframe for the Mainland Ownership Transfer in Dubai?

On average, a mainland company ownership transfer in Dubai takes 1 to 6 weeks.

• Fast cases

Simple transfers with complete documents can be done in 1–2 weeks.

• Complex cases

Multiple partners, additional approvals, or regulatory checks can take 4–6 weeks.

• Expected Delay

Delay occurs due to further processing, notarization issues, or partner approval waiting.

Compliance Before Company Ownership Transfer

• Operating business: Verify license is still active and business is operational.
• Legal and financial responsibility: Perform searches for any bankruptcies, litigations, or other financial delinquencies.
• VAT and contracts: Confirm that all the required taxes are paid, and the contracts must be signed for the new owner.

Such inquiries must be carried out by both parties involved in the sale and the purchase to avoid complications in the future.

Is There Any Post Ownership Compliance

After you have shifted ownership of a mainland company in Dubai, the next step is to complete all the compliance obligations.

UBO and Company Records Update

Neglecting timeframes for UBO submissions and company records with the DET can lead to negative consequences, such as financial charges.

VAT and Corporate Tax Registration Update

Should a company have a VAT registration or be subjected to corporate tax, appropriate VAT and corporate tax documentation must be kept to ensure the company is legally operating within the UAE.

Key Differences: Mainland vs Free Zone Ownership Transfer

It’s essential to know the difference between Mainland vs Free Zone ownership transfer.

• Approval Authorities

Mainland transfers are approved by the Dubai Department of Economy and Tourism (DET). Free Zone companies follow their own Free Zone authority rules.

• Legal Documentation

For the Mainland, you need an MoA amendment. For the Free Zone, usually, shareholder resolutions are enough.

• Processing Time and Flexibility

Mainland transfers can take longer because of more checks. Free Zone transfers are often faster and simpler.

This helps you pick the right way for share transfer processes in Dubai.

What Happens to Staff and Visas After Selling the Business?  

What happens to your mainland business and the employees, and visas when you have to do the transfer of business ownership in Dubai?  

Employee Agreements  

Employee contracts typically remain unchanged when business ownership changes.  

Visa Changes  

Employee transferable visas issued to the business may need to have the ownership details amended.  

Employment History Changes  

All such changes may have to be notified to the Ministry of Human Resources and Emiratisation in order to remain compliant.

Updating the Company Bank Account After Business Transfer

Once you complete the ownership transfer of a mainland company in Dubai, you must update the bank account as follows:

• Bank Policies: Present the bank with official documents, brand new, with the new owner’s name.
• Signatories: Remove and replace the signers of the account.
• Verification: Provide the bank with DET approval, an amended MoA, and notarized documents so they can make the necessary updates.

Can Mainland Ownership Be Transferred Remotely?

Yes, in some cases, a mainland company ownership transfer in Dubai can be done remotely:

• Power of Attorney: The current owner can appoint someone to act on their behalf.
• Remote documents: Many papers can be signed and notarised online.
• Physical Presence: Sometimes, the new owners still have to go to Dubai to handle the last verification from the bank or other approvals.

What are the Practical Tips for Buyers and Sellers

Buyers and sellers should follow the tips below when transferring a mainland company in Dubai:

• Check the company’s legal and financial status carefully.
• If needed, use an escrow service to protect payments.
• Make sure all terms in the share transfer agreement are clear and well-defined.
• Use lawyers or business setup experts to avoid mistakes.

Post-Ownership Transfer Compliance Checklist

After completing a mainland company ownership transfer in Dubai, make sure you complete these steps:

• Update trade licence with DET.
• Update UBO records for compliance.
• Update bank account details to reflect new ownership.
• Check VAT and corporate tax records for accuracy.
• Update visas and labour records for all employees.

Our experts from PRO Services in Dubai will help you streamline the company transfer process. They are licensed business setup consultants in Dubai with over 12+ years of experience. 

Frequently Asked Questions

Q1: Can you transfer ownership without being in Dubai?

Technically, yes, but in some cases, the new owner may need to come to Dubai for final approvals or to go to a bank for security clearance.

Q2: Do you need to amend the MoA when you transfer shares?

Yes, the MoA must change to reflect the new owner. It is a requirement for the transfer of any shares of a mainland Dubai LLC.

Q3: What happens to the company bank account after you transfer it?

You need to change the bank account to reflect the new ownership. This is necessary to ensure that new ownership is on the account to authorise payments, sign documents, and authorise any action on the account.

Q4: Does the transfer impact the employees?

Not really, though employee contracts remain in the same position, and there may need to be some changes to the visa and employee labour records to reflect the new owner of the company.

Q5: Can foreign investors fully own a transferred mainland company?

Yes, that is possible due to the new 100% foreign ownership laws. Some of the more sensitive sectors may have restrictions, but for most businesses, it is possible to be entirely foreign-owned after the transfer.

Conclusion: Should You Proceed with the Transfer of Mainland Business Ownership?

Business owners who wish to transfer ownership of a mainland company in Dubai have the opportunity to legally and seamlessly transfer ownership of the company. Following the DET rules is crucial to remain out of trouble and avoid any fines.

Take the time to ensure that all steps are done thoroughly and correctly, such as changing the MoA, updating the trade licence, UBO records, bank account and bank account details. If you aren’t clear, you can always consult with a professional.

If all the rules and steps are followed, you will have the transfer of ownership that is slow and shields Dubai and the Dubai people.

Contact our PRO Services in Dubai for more help!