Hi, I'm David Thompson, and my business partner wants to exit our Dubai Free Zone company for personal reasons. We're unsure about the legal process involved. Can anyone explain whether it's possible to transfer ownership of a free zone company and what steps are required?
Hi David Thompson,
In simple terms, a freezone company can transfer ownership, but the process requires approval from the relevant freezone authority and proper documentation. Many entrepreneurs handle this through a professional freezone company setup in the UAE, with services to ensure compliance and a smooth transition.
In practice, ownership transfer involves submitting a request, providing the current and new shareholder details, and updating the license and registration. The freezone authority may also require a board resolution or notarized agreement, depending on the zone. This is ideal for you if you want to:
- Sell your business or bring in a new partner
- Reorganize ownership among existing shareholders
- Prepare for investment or funding rounds
However, note that some free zones have restrictions on transferring certain types of licenses, and the process may take a few weeks. For example, DMCC and RAKEZ allow ownership transfers with clear documentation, whereas smaller zones may impose additional conditions.
If you're planning to start a company in Dubai, most founders choose to work with a professional service to handle approvals, paperwork, and ensure the new ownership is fully recognized by the freezone authority.
