UAE: Amendments to Commercial Companies Law Approved

News developments

UAE: Amendments to Commercial Companies Law Approved

The UAE’s President has approved a Law amending the country’s Commercial Companies Law.

Under the amendments, investors and entrepreneurs will be able to establish and own all of onshore companies across all sectors, except in a small number of reserved strategic activities.

The amendments also specify the companies which will be exempt from the Law’s remit.

There are also amendments to corporate governance and strategic activities provisions.

In addition, the amendments clarify the responsibilities of boards of directors, executive management and general assembly authorities.

They also specify the requirements for bonds and instruments to be issued, acquisitions and the administrative penalties to be imposed on violators.

Finally, the amendments detail the approvals and licenses required by companies to be able to carry out commercial activities in the UAE as well as the company’s name, contract, incorporation procedures and conditions for increasing and decreasing capital.

The aim is to boost the country’s competitive advantage and is part of a wider Federal Government economic diversification strategy. They want to create an innovation-led and knowledge-based economy.

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Benjamin Filaferro