Analysis of the number of registered shareholders of Akiman Company

As one of the most dynamic special economic zones in the UAE, Akiman has zero corporate income tax and a flexible registration process, and has become the core hub for global companies to deploy in the Middle East market. However, the specific requirements for the number of shareholders need to be differentiated in relation to the type of company (free zone vs. inland) and business scenario. This article will systematically sort out the number of shareholders registered by Akieman from the three dimensions of free zone companies, inland companies, and special entity types, and attach practical operating guidelines.

1. Free Zone Companies: Shareholder Number Flexible, Foreign Holding Unlimited

the Akieman Free Zone (AFZA) is the preferred place of incorporation for foreign companies, with its core strengths being that it allows 100 per cent foreign ownership and is extremely flexible with respect to the number of shareholders. According to the updated policy for 2025, Free Zone companies can be divided into the following three categories of entities, with the following number of shareholders:

free Zone Organization (FZE)

number of shareholders: minimum 1 and maximum 1 (I. e. sole proprietorship).

Applicable scenarios: suitable for small and medium-sized trading companies, individual entrepreneurs or family businesses.

Registered capital: minimum 50000 dirhams (about $13000), no paid-in.

Free Zone Company (FZC)

number of shareholders: 2 to 5 persons (natural or legal).

Applicable scenarios: suitable for technical service enterprises, joint venture projects or teams requiring multiple decision-making.

Registered capital: minimum 50000 dirhams, paid in proportion to equity.

3. Branches

number of shareholders: unlimited (wholly owned by the parent company).

Applicable scenarios: suitable for multinational enterprises to set up regional headquarters or R & D centers.

Registered capital: there is no specific requirement, but the business license of the parent company and the resolution of the board of directors (authorizing the establishment of branches) are required.

Practice tips: free zone company registration through AFZA authorized agency, the whole can be remote operation. Core information includes a copy of the shareholder's passport, proof of address (e. g. utility bill), articles of association and a description of the scope of business.

2. Inland Companies: Need Local Insurers, Shareholder Structure Complicated

if the company plans to directly participate in the UAE local market (e. g. opening a physical store, trading with local companies), it is necessary to register an inland company. Under the UAE Business Companies Act, inland companies must meet the following shareholder requirements:

1. Limited Liability Company (LLC)

number of shareholders: 2 to 50 (at least 1 UAE local insured holding 51%).

Proportion of foreign investment: Foreign investors hold up to 49% of the shares, but can agree on the actual distribution of equity through the "sponsor agreement" (e. g. the insurer only charges a fixed annual fee and does not participate in the operation).

Applicable scenarios: suitable for enterprises that need localized operations, such as retail, catering, construction and other industries.

2. Private joint-stock companies

number of shareholders: at least 3 (no upper limit), allowing 100 foreign ownership (special permission required).

Applicable scenarios: suitable for large projects or enterprises that need public financing, but the approval process is complex and the success rate is low.

Risk Warning: Inland company registration needs to lease physical office space and meet the "Omanization" policy (priority employment of local employees). Failure to comply with the regulations may result in fines or license revocation.

3. Special Scenario: Shareholder Number Variants

1. Virtual shareholder agreement

for companies that wish to maintain 100 per cent foreign ownership but need to meet the number of shareholders of inland companies, a "virtual shareholder agreement" can be used to make the change.

2. Multi-layered shareholding structure

foreign ownership can be achieved indirectly by registering a holding company in a free zone and then using that holding company as a shareholder in an inland company. For example:

registration of FZC (100 per cent foreign holding) in Akiman Free Zone;

with FZC as a shareholder, LLC is registered in the UAE inland (FZC holds 49% and local guarantor holds 51%);

through the agreement, FZC has the right to operate all the rights and dividends.

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