Hi, I'm Stefan from Germany. My holding company in Singapore wants to invest in a UAE Free Zone business instead of me investing personally. Is it possible for a company to become a shareholder in a Free Zone company?
Hi David,
Yes, that's completely possible. Most UAE Free Zones allow corporate shareholders, which means another company, not just an individual, can own shares in a UAE Free Zone company.
Depending on the Free Zone's regulations, the shareholder can be:
- A UAE-registered company.
- A foreign company incorporated outside the UAE.
- Or a combination of corporate and individual shareholders.
This flexibility makes Free Zones a popular choice for businesses looking to expand into the UAE through an existing parent company or holding structure.
When a company is becoming the shareholder, the Free Zone Authority will usually ask for documents such as the Certificate of Incorporation, Memorandum & Articles of Association, and a Board Resolution authorising the investment in the UAE entity. In most cases, these documents must be properly notarised and attested (or apostilled, where applicable) before they are accepted.
You'll also need to disclose the Ultimate Beneficial Owner (UBO), as UAE regulations require authorities to know the individuals who ultimately own or control the corporate shareholder.
One piece of advice I always give is to prepare the corporate documents well in advance. International attestations can sometimes take longer than expected, and having everything ready helps avoid unnecessary delays in the company formation process.
