Tim Elliott
Welcome to Lawgical, the first regular podcast navigating legal processes in the United Arab Emirates. I’m Tim Elliott, and in today’s podcast, we’re diving into an important topic for business investors in the UAE: the minimum share requirement for obtaining an investor visa. Now with me is Ludmila Yamalova, managing partner of the Dubai-based legal firm HPL Yamalova & Plewka. As ever, Ludmila, good to see you and chat with you.
Ludmila Yamalova
Good to be here with you, Tim, as always. Pleasure chatting with you.
Tim Elliott
Let’s jump in. First of all, I guess we need the definition, don’t we? What’s the minimum share capital requirement for an investor visa in the UAE? And what does that mean?
Ludmila Yamalova
To qualify for an investor visa in the UAE, business investors must have share capital in their company valued at a minimum of AED 50,000. This requirement is critical for linking the investor visa to their business.
Tim Elliott
Okay, so it’s not about a percentage of shares an investor holds, is it?
Ludmila Yamalova
Exactly. Eligibility for an investor visa is determined by the value of the share capital, not the percentage of ownership. For instance, an investor could hold just 5% of the company, but if that 5% represents at least AED 50,000 in share capital, they qualify for a residence visa.
This is an interesting topic because we’ve had a number of clients reach out to understand this very issue. In the UAE, residency is linked to various factors, and historically, options for obtaining residency were more limited. Over the past four years, the UAE has liberalized its immigration laws, introducing many pathways to obtain residency.
The investor visa remains a preferred option for many people because it signifies partnership or ownership in a company. Some individuals prefer a visa reflecting their role as a partner or investor, rather than an employment visa, even if they own the company.
Recently, we’ve seen questions from clients about retaining their partner visa while bringing new partners into their business, which might dilute their ownership percentage. This leads to the question: “What’s the minimum percentage of company shares needed to retain an investor or partner visa?” The answer lies not in the percentage but in ensuring the value of the shares meets the AED 50,000 threshold.
Tim Elliott
Okay, and is this a rule that applies uniformly across the Emirates?
Ludmila Yamalova
Yes, it does. This is governed by UAE immigration law, which is national in scope. The requirement applies regardless of the emirate or economic zone you’re in—be it Ajman, Fujairah, Ras Al Khaimah, the mainland under a DED license, or any free zone.
It’s important to highlight this because clients often ask if different free zones or emirates have unique rules. However, since this requirement is tied to immigration law, not company law, it’s standardized across the country. Immigration authorities issue these visas, so the value of the share capital is what matters, not local company-specific rules.
Tim Elliott
Ludmila, what are the benefits of holding an investor visa in the UAE?
Ludmila Yamalova
An investor visa is a full-fledged UAE residence visa, offering all the associated benefits and rights. While previously free zone investor visas were issued for three years, and mainland visas for two, the current immigration law standardizes this to two years for all.
The investor visa provides ease of travel, the ability to sponsor family members, and access to various opportunities and services. One major benefit for many is the ability to sponsor their spouse, children, and domestic employees.
Interestingly, some clients pursue an investor visa to meet unique needs, like owning a car in the UAE. For example, a client working in Saudi Arabia but visiting the UAE frequently might want a residence visa to own a car here.
Similarly, residence visas are often necessary for renting property. Even business owners with operations elsewhere may seek an investor visa to secure these benefits for their family members, allowing them to reside in the UAE while the owner spends less time here.
Tim Elliott
What about the steps to secure an investor visa? Can you walk us through those?
Ludmila Yamalova
First, evaluate your share capital to ensure it meets the AED 50,000 minimum requirement. Then, gather the necessary documentation to prove the value of your share capital and ownership percentage.
Submit your application through the relevant authority—either the DED for mainland companies or the specific free zone authority. Finally, stay informed about changes in immigration laws to ensure ongoing compliance.
Proof of share capital can vary depending on the company’s location. In free zones, depositing share capital in a bank account is often required, providing clear documentation. On the mainland, where such deposits may not be mandatory, proving share capital might involve additional documentation or business valuation.
If the company has grown significantly, the initial share capital may differ from its current value. In such cases, you might need to engage consultants or auditors to assess the current value and confirm compliance with the AED 50,000 requirement.
Tim Elliott
What should investors do if they need more guidance on their investor visa application, Ludmila?
Ludmila Yamalova
It’s crucial to consult legal experts or immigration consultants specializing in UAE visa regulations. These professionals can provide reliable advice and guide you through the application process.
While business consultants may offer services, only qualified legal practitioners can provide advice you can rely on and hold accountable. We’ve seen many cases where clients followed the guidance of unqualified consultants and faced issues later.
If you’re new to the UAE or setting up a business, ensure you work with advisors properly qualified to assist with company ownership and residency requirements.
Tim Elliott
That wraps up another episode of Lawgical, understanding the minimum share for an investor visa in the UAE. Thank you for listening. If you’re with us on YouTube, thank you for watching. And as always, thanks to our legal expert, managing partner of HPL Yamalova & Plewka in Dubai, Ludmila Yamalova.
Ludmila Yamalova
Thank you, Tim, as always.
Tim Elliott
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