Doing business in the uae a tax and legal guide5 welcome to this guide as a place to do business, and as a hub for the region and beyond, the united arab emirates uae continues to be increasingly important, relevant and attractive to businesses from around the world. The commercial companies law of 1984, as amended the ccl requires an llc to be held by at least two individuals or. There are basically 7 types of legal entities under commercial law company law of uae. This is a replication of the united arab emirates draft federal law no. The law applies to onshore insurance companies incorporated that are licensed to perform and includes companies engaged in operations of cooperative insurance, takaful insurance, reinsurance companies, and insurance professionals. In dubai, the ded also requires shareholders mobile numbers. The uae commercial companies law in focus the new uae commercial companies law 2015 the ccl has now been in force for some. The new uae companies law o the 1984 law required that the founder members must subscribe to a minimum of 20% and a maximum of 45% of the. We zayed bin sultan al nahyan, president of the united arab emirates. The english text in this document is not an official translation and is provided for. The uae commercial companies law, which was enacted first in 1984 but only came into enforcement in 1991, has gone through a number of changes and amendments in the last 15 years. This method of carrying out business allows nonuae entities to carry out business within the uae. Uae companies law update changes to make pwc 2 change pwc legal view details of the shareholders the new ccl specifies that the articles should list with the details of the shareholders of a llc their date of birth.
Company bylaws or in the employment contract, or normally practiced or granted to the amended by federal law no. By year 2020 2019 2018 2017 2016 2015 2014 20 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978. Amendments to uae commercial companies law 1984 as made in. New law a company may be incorporated or held by a single person. Uae companies law 2014,companies law uae downloan pdf,pdf. Mar 19, 2020 business regulations related to mainland companies. There are several other features to the 2015 law which should have the effect of stimulating development and growth, primarily by making the uae company law. The new company law landscape in the united arab emirates key. The new ccl was introduced in july as federal law no. Federal law no 8 of 1984 uae commercial companies law. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. On 25 march 2015, the new uae commercial companies law uae federal law no. The uae government intends that the new law will provide uptodate regulations for the corporate.
You should not act upon the information contained in this publication without obtaining specific professional advice. Dubais company act was first enabled in 1984 and ever since it has gone. Jul 03, 2019 dubais company act was first enabled in 1984 and ever since it has gone through several changes in order to provide local and foreign investors with a suitable business environment. As such the new law comes into effect three months from the date of the publication in the official gazette i. Uae companies law update this publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. Work is a right of the united arab emirates nationals. Business regulations the official portal of the uae government. In the uae insurance and reinsurance are covered by federal law no. New uae commercial companies law applicable for llcs. New uae commercial companies law and related regulatory. The uae commercial companies law in focus the new uae commercial companies law 2015 the ccl has now been in force for some 9 months. To find out all about it, lawyer monthly benefits from an exclusive article from ken dixon, a partner at galadari advocates and legal consultants. Broadly similar to the old ccl in terms of structure. Economy profile of united arab emirates doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a.
Article 10 in the event of nonavailability of national workers, preference shall be given to. In line with article 68 of the insurance law, an insurance company licensed in a free zone may only conduct its activities in that free zone. The new law new ccl was published in the official gazette on 31 march 2015 issue number 577 and will come into force three months thereafter. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. The law provides a legal framework to help distressed companies in the uae to avoid bankruptcy and liquidation through different mechanisms which include. The companies ordinance, 1984 v reduction of share capital 96. New law also the ownership pattern still continues to be same of 51% by the uae nationals or 100% by gcc nationals.
Dubai s company act was first enabled in 1984 and ever since it has gone through several changes in order to provide local and foreign investors with a suitable business environment. The new ccl sets out a clear explanation to its applicability and explicitly lists the kind of companies that are covered within its scope. An overview of the uaes new commercial companies law uaes. A foreign company can be a partner in a civil company, as long as the foreign company is in the same field as the civil company. There have also been several drafts available for discussion. To download adobe reader for free, please click here. The scope of the application of the ccl applies to all commercial companies that are incorporated within the uae, foreign companies including a branch of foreign companies and representative offices. Uae enacted new federal law no 2 of 2015 concerning commercial companies ccl2015 which came into effect on 1st july 2015 and replaced federal law no. A civil company is 100% owned by the professional partners except for engineering civil company, however, a uae national local service agent is normally required. The corporate law in the uae governs the establishment, ownership and management of companies in dubai and the rest of the emirates. The commercial companies law introduces very specific, strategic modifications, designed to modernise the regulation of uae commercial activities in. Dubai law free app for iphone, ipad and ipod touch.
It will henceforth replace the existing law uae federal law no. There are basically 7 types of legal entities under commercial law company lawof uae. Great britain passed companies act in 1908 which introduced several important provisions relating to company administrations. The history of corporate law in this region is much older than the history of pakistan. Nov 02, 2010 corporate laws in pakistan companies ordinance 1984 today the corporate sector of pakistan is governed by companies ordinance of 1984. A new commercial companies law replaced most of federal law no. Federal laws legislations uae ministry of climate change. We, zayed bin sultan al nahyan, president of the united arab emirates. Corporate laws in pakistan companies ordinance 1984. The full text version of the uae labor law including its amending texts is available on the site. Uae commercial company law and legal reforms general. We would like to show you a description here but the site wont allow us. This includes the right to equality, liberty and the presumption of innocence in legal procedures until proven guilty, of course.
Uae federal government has laid out specific rules to govern the legality of various types of companies in uae. According to article 374, all commercial companies operating in the united arab emirates must adjust their positions to comply with the new law within one year of its effective date. At the beginning of the year, the uae government announced a new company law would be set in place. As usual, the arabic text of the new ccl will prevail over the english version so a. It defines agency as the representation of the principal by an agent for the purpose of distribution, selling, display or rendering of a commodity or service in the united arab emirates against a commission or profit. One or more uae nationals must hold at least 51% of the share capital of any uae company under article 101 of the new law where the company is partly owned by nongcc nationals. Introduction main changes introduced by new law unlike many uae laws in the past, the new law states its objectives, which include contributing to the development of the business climate and the uaes commercial. Uae federal law 2 of 2015 on commercial companies legal. Others may not by employed in the united arab emirates except as provided for in this law and its executive orders. The provisions of this law shall apply to commercial corporations established in or that have their. A uae company can be 100% owned by nationals of the gulf. We zayed bin sultan al nahyan president of the united arab emirates state, pursuant to the perusal of the provisional constitution, and. Abu dhabi, dubai, sharjah, ras al khaimah, umm al quwain, ajman and fujairah.
A fine of aed 2000 per day of delay will be imposed on any company that fails to amend its moa before 1 july 2017 to. The new law reserves the power to the uae cabinet of ministers to introduce. Employment of workers article 9 work is an inherent right of the nationals of the united arab emirates. Dubai national insurance company building, portsaeed, deira, 8th floor, office 806, p. Law was issued on the 25th of march 2015 and came into effect 3 months following its issuance date the effective date repealing the old uaes commercial companies law no. Uae laws legally protect human rights, as well as social development. The english text in this document is not an official translation and is provided for information purposes only. Business regulations the official portal of the uae. We strive towards integrated management for environment ecosystem and natural resources to realize green economy for the present and future generations. Health services company, the operator of public healthcare assets. Companies and corporations are a essential to any economy. The law replaces the previous enactment being federal law no. Employment of workers children and women section i. Earlier law there was no provision of ownership by one personcompany.
This update provides an overview of the main provisions of the new law and sets out the. Non nationals may not engage in any work within the state except in accordance with the conditions stipulated in this law and its executive orders. The united arab emirates uae is a federation established in 1971 in the area previously known as the trucial coast in the arabian gulf. These include the agents exclusive right to market and sell a particular product in one or more of the emirates. We, khalifa bin zayed al nahyan, president of the united arab emirates state. Business regulations related to mainland companies. The new uae commercial companies law federal law no. While the nccl replaces the previous commercial companies law uae federal law no. The new company law reforms make this guide timely. It replaces the existing commercial companies law, uae federal law no.
The following is a snapshot of the key developments brought about by the ccl in. The new law may not be radically different, but offers clarity in certain aspects, writes nasser ali khasawneh, managing partner, middle east, at eversheds. Restructuring and insolvency in the united arab emirates. The purpose of the new legislation was to bringing the uae up to speed with corporate legislation currently enacted in many developed nations. The following is a snapshot of the key developments brought about by the ccl in relation to llcs. Introduction main changes introduced by new law unlike many uae laws in the past, the new law states its objectives, which include contributing to the development.
Uae federal law 5 of 1985 on the civil transactions law. Every company which undertakes a commercial activity or has adopted one of the legal forms. The united arab emirates labor law website also contains resources for understanding the current economic situation in the uae labor law, migrant rights, and other helpful tools to assist with further analysis of labor related functions in the country. A guide to setting up a business in the uae the legal requirements 3 once registered, the agency agreement is given substantial protections under the uae commercial agencies law.
In applying this law, each of the following expressions and words shall have the meaning assigned thereto opposite to each. Reinsurance activities may, however, be conducted outside the free zone. Dubais company act was first enabled in 1984 and ever since it has gone through several changes in order to provide local and foreign investors with a suitable business environment. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution, federal law no. Objection by creditors and settlement of list of objecting creditors 75 100. The law brings to a close several years of speculation regarding anticipated changes to federal law no 8 of 1984 regarding commercial companies, as amended the commercial companies law of 1984. Haad was established as a public authority with financial and administrative independence pursuant to abu dhabi law no.