How to Add a Shareholder to a UAE Free Zone Company 2026
Adding a new shareholder (partner, investor, co-founder) to your UAE free zone company requires following specific steps. Here is the 2026 guide.
In this guide:
Why Add a Shareholder?
- Bringing in a co-founder or business partner
- Onboarding an investor with equity
- Restructuring ownership before funding round
- Adding a family member to the company structure
Process to Add a Shareholder to UAE Free Zone Company
- Board Resolution: All current shareholders pass a resolution approving the new shareholder and share structure
- Share Transfer Agreement or Subscription Agreement: Legal document governing the new shareholder entry
- Update Memorandum of Association (MOA): MOA must be amended to reflect new shareholding structure
- Submit to Free Zone Authority: Provide amended MOA, new shareholder passport, new shareholder KYC documents (bank reference, source of funds)
- Free zone processes amendment: Typically 3-7 business days
- Updated MOA and Certificate of Incorporation issued
Cost of Adding a Shareholder
- Free zone amendment fee: AED 1,000-5,000 depending on free zone
- MOA amendment drafting (legal): AED 500-2,000 if using a business setup consultant
Visa Implications of Adding a Shareholder
- New shareholder who wants UAE residency: Can apply for an investor visa after they are added to the MOA
- Visa quota: If your current quota is fully used, you may need to upgrade your office space before the new shareholder can get a visa
Inform the Bank
- After adding a new shareholder: Inform your UAE business bank; provide updated MOA and board resolution
- Bank KYC update: Some banks require in-person meeting to update company records for new shareholders