Local service agent in Dubai and the UAE
A limited liability company outside the restricted activities no longer needs an Emirati partner or agent. Some legal forms may still need one, and official pages do not agree. This page sets out what is confirmed and what is not.
The short answer
A local service agent is a UAE national appointed by a foreign owned business under an attested agreement. A limited liability company outside the restricted activities, and a branch of a foreign company, do not need one. The governing law is Federal Decree-Law No. 32 of 2021 on Commercial Companies. The Ministry of Economy and Tourism states that the requirement still exists for sole establishments, subject to the rules of each emirate's licensing authority.
What is a local service agent?
A local service agent is a UAE national appointed by a business that is owned by foreign nationals. The appointment is made in a service agent agreement.
The UAE Government portal states that a local service agent agreement must be attested by the notary public or the court.
No authority page we checked sets out what the agent may own or what the agent is paid.
Do you still need a local service agent or Emirati partner?
Not for a limited liability company outside the restricted activities, or for a branch of a foreign company. For sole establishments and civil companies, official pages still refer to an agent.
The UAE Government portal states that there is now 100% foreign ownership, with no requirement for a majority Emirati shareholder or local partner. The table shows the position for each legal form, with the source.
| Legal form | What the official source says | Source |
|---|---|---|
| Limited liability company | 100% foreign ownership, no majority Emirati shareholder or local partner required | UAE Government portal, Ministry of Economy and Tourism |
| Branch of a foreign company | The obligation to appoint a UAE national service agent has been eliminated | UAE Government portal, Ministry of Economy and Tourism |
| Sole establishment | The requirement for a national agent still exists, subject to the legislation of local authorities | Ministry of Economy and Tourism |
| Civil company owned 100% by non GCC nationals | An attested service agent contract is listed among the license documents | UAE Government portal |
| Any form, restricted activity | Cannot be fully foreign owned | UAE Government portal |
Good to knowLinks confirms the position with the licensing authority for each application, before you choose a legal form.
Why do official sources say different things?
Two pages on the UAE Government portal do not match. The page on starting a mainland business, updated 16 July 2026, says that businesses owned completely by non GCC residents require a local service agent.
The portal's page on full foreign ownership, updated 6 April 2026, says there is no requirement for a local partner and that the agent obligation for foreign branches has been eliminated. The Ministry of Economy and Tourism says the same for branches.
The Ministry also states that sole establishments are not covered by Federal Decree-Law No. 26 of 2020, which is why the agent requirement still exists for them under local rules. For that reason we do not write that the local service agent has been abolished for every legal form.
Which law governs foreign ownership of a mainland company?
The governing law is Federal Decree-Law No. 32 of 2021 on Commercial Companies, issued on 20 September 2021. It replaced Federal Law No. 2 of 2015 and was amended by Federal Decree-Law No. 20 of 2025.
The UAE Government portal states that Federal Decree-Law No. 26 of 2020, effective early 2021, abolished the previous 49% cap on foreign ownership of mainland companies.
Full foreign ownership is the default, with limits. Article 10 lets the Cabinet define activities with strategic impact, and lets each emirate's competent authority set a percentage of national participation in the capital or boards of companies within its jurisdiction.
Good to knowUnder Article 5, the Commercial Companies Law does not apply to free zone companies where the free zone's own laws make special provision.
Which activities still need a UAE national shareholder?
A short list of activities cannot be fully foreign owned. The UAE Government portal lists them. The list was checked in September 2026 and can change.
The strategic impact list is Cabinet Resolution No. 55 of 2021, which the Ministry of Economy and Tourism describes as covering defence, banking, telecommunications, Hajj services and fisheries.
- Security, defence and military activities
- Telecommunications
- Banks, exchange, financing, insurance and the production of banknotes or coins
- Commercial agencies
- Hajj and Umrah services
- Quran recitation institutes
- Fish catching, natural pearl catching and marine animals catching
Are the rules the same in every emirate?
No. The requirement for sole establishments is subject to the legislation of each local authority, so the position is set emirate by emirate.
Ajman's Department of Economic Development publishes terms for civil companies. Two or more GCC citizens may form one without a local service agent. If any partner is not a GCC citizen, a UAE citizen must be appointed as local service agent or made a partner at any percentage.
Sharjah's Economic Development Department describes a service agent structure for a foreign national with a citizen agent. For Dubai, we found no page from the Department of Economy and Tourism that states the current rule, so we confirm it with the authority for each application.
What does a local service agent cost?
We found no authority page that publishes a fee for a local service agent, so we do not quote a figure on this page.
Where an agent is needed, we prepare the agreement for attestation and tell you the cost in writing before you commit.
Local service agent: common questions.
Answered from the official sources listed below. If yours is not here, ask us directly.
Do I still need an Emirati partner holding 51% of my company?
No, for most activities. The UAE Government portal states that Federal Decree-Law No. 26 of 2020 abolished the previous 49% cap on foreign ownership of mainland companies, and that there is now 100% foreign ownership with no requirement for a majority Emirati shareholder or local partner. A short list of activities is excluded.
Which business activities still need a UAE national shareholder?
The UAE Government portal lists activities that cannot be fully foreign owned: security, defence and military activities, telecommunications, banks, exchange, financing and insurance, commercial agencies, Hajj and Umrah services, Quran recitation institutes, and fish, natural pearl and marine animals catching. The list was checked in September 2026 and can change.
If I set up as a sole establishment, do I need a local service agent?
Official sources point that way, but they are not consistent. The Ministry of Economy and Tourism states that the national agent requirement still exists for sole establishments, subject to the legislation of local authorities. Links confirms the position with the licensing authority for each application.
Does my foreign company's Dubai branch need a local agent?
No. The Ministry of Economy and Tourism states that a foreign company opening a UAE branch does not require a UAE national agent. The UAE Government portal states that the obligation has been eliminated.
Is a free zone company still the only way to own 100%?
No. The UAE Government portal states that mainland companies can now be 100% foreign owned, with no requirement for a majority Emirati shareholder or local partner. A short list of restricted activities is excluded.
What does a local service agent cost per year, and is the fee regulated?
We found no authority page that publishes a fee for a local service agent, so Links does not quote a figure. Where an agent is needed, we tell you the cost in writing before you commit.
Are the local service agent rules the same in Sharjah and Ajman as in Dubai?
No. Ajman's Department of Economic Development states that a civil company with any partner who is not a GCC citizen must appoint a UAE citizen as local service agent or take a UAE citizen as a partner. Sharjah's Economic Development Department describes a service agent structure for a foreign national with a citizen agent.
Where these facts come from
Every fact on this page was checked against the official source on 29 September 2026. Rules and fees change, so we confirm the current position before any application.
- UAE Government portal, full foreign ownership of commercial companies (opens in a new tab)
- UAE Government portal, steps to start a business on the mainland (opens in a new tab)
- Ministry of Economy and Tourism, Federal Decree-Law No. 32 of 2021 on Commercial Companies (opens in a new tab)
- Ministry of Economy and Tourism, companies legislation (opens in a new tab)
- Ministry of Economy and Tourism, 100% company ownership (opens in a new tab)
- Ministry of Economy and Tourism, FAQ on the national agent for sole establishments (opens in a new tab)
- Ajman Department of Economic Development, issue trade license (opens in a new tab)
- Sharjah Economic Development Department, FAQ (opens in a new tab)
Related pages
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