The new uae commercial companies law 2015 the ccl has now been in force for some 9 months. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. Limited company dubai based on the uae company law of 2015. There are basically 7 types of legal entities under commercial law company lawof uae. Uae commercial companies law 2015 federal law no 2 of 2015 kothari auditors and accountants is a professionally managed accounting, auditing, management and financial consulting firm established in october 1992. President his highness shaikh khalifa bin zayed al nahyan has issued federal decreelaw no. However, there is a general requirement for directors to act in accordance with the companys objectives and in the best interest of its shareholders. Foreign investors looking to incorporate an entity onshore the uae may do so either under the provisions of the uae civil code, or in accordance with the provisions of federal law no. This is a significant development for foreign investors that are interested in investing in, or already invested in, companies in the uae. Ministry of economy extends by one year compliance with. The following is a snapshot of the key developments brought about by the ccl in. Companies and corporations are a essential to any economy. Conducting shareholder meetings in the uae al tamimi. In 2015, the abu dhabi government issued a new law concerning the regulation of the real estate sector in the emirate which contributed towards the growth of the economy, as well as attracting foreign investments law number 3 of 2015 concerning the regulation of real estate in abu dhabi, herein mention as the new law.
The commercial companies law promulgated by decree no 28 of 1975 shall be repealed as well as any other provision in conflict with the provisions of the attached law. All entities subject to the new law must comply with its provisions before the 7 february 2016, which is six months from its effective date, the 7 august 2015. Ministry of justice, uae pdf in english pdf in english. The commercial agency is an arrangement, wherein a foreign company is represented by an agent to sell, distribute, offer or provide goods or services within the uae for a commission or profit. However the cabinet shall issue a decision determining the applicable conditions to enter and register companies operating in the free zones of the state and willing to conduct their activities in the state. New uae commercial companies law applicable for llcs. While the nccl replaces the previous commercial companies law uae federal law no. In this article richard catling address certain of the legal requirements arising from the commercial companies law federal law no.
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 limited liability company. New law free zone companies are exempted from the application of the new law. Uae commercial companies law 2015 federal law no 2 of 2015. Get a free quote by filling your details in the form on the right and know more about the llc uae company law of 2015. Companies where all the joint partners of any of such companies shall be uae.
A number of key changes were brought about by the enactment of the ccl, which introduced new legal concepts into the uae s corporate framework and impacted established market practices. The primary objective of the ccl is to keep pace with the tremendous development in trade relations, economic openness and global variables as article 2 of the law aims to contribute to. The positive list provided for in the uae fdi law has now been issued by the uae cabinet and has come into effect. The uae commercial companies law no 2 of 2015, which came into force on 1 july 2015, requires all companies to apply international accounting standards and practices when preparing their accounts. Applying this law, each of the following terms shall have the meaning assigned thereto hereunder.
As a general comment, in order to conduct business in mainland uae, foreign investors must either appoint a local agent or establish a company under the uae commercial companies law federal law no 2 of 2015 which requires that any such company must have a uae national company or individual holding at least 51% of the share capital. Commercial companies law 2001 central bank of bahrain. The uae government intends that the new law will provide uptodate regulations for the corporate. The new uae commercial companies law 2015 the ccl has now been in force for some. The following is a snapshot of the key developments brought about by the ccl in relation to llcs. These companies are regulated under federal law no. Abu dhabi, 16th september, 2018 wam president his highness sheikh khalifa bin zayed al nahyan has issued federal decree law no. Key change to uae company law announced business gulf news. Legal reforms to strengthen the legal and regulatory landscape of doing business in the uae may 2015 in brief after years of speculation regarding an overhaul of commercial companies law in the uae, federal law no. This compliance deadline may be extended for another.
Abu dhabi, 16th september, 2018 wam president his highness sheikh khalifa bin zayed al nahyan has issued federal decreelaw no. Companies that fail to make the amendments by 30 june 2016 will be deemed as. Perspective s on the new uae commercial companies law what do. Regulatory contents the new commercial companies law addresses a range of aspects. The new ccl will enter into full force three months after its publication. On 1 april 2015, his highness sheikh khalifa bin zayed al nahyan, president of the united arab emirates, enacted federal law no 2 of 2015 the commercial companies law, or law. Perspectives on the new uae commercial companies law what. Article 92 of the commercial companies law federal law no. Existing uae limited liability companies and foreign companies contemplating doing business in the uae through limited liability companies need to be aware that limited liability companies may be subject to the same obligations as joint stock companies when the 20 draft ccl becomes law. Uae federal government has laid out specific rules to govern the legality of various types of companies in uae. 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. 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. The decree stipulates that article 14 of federal law no.
In addition, your business shall be governed by laws relating to your specific business activity, in terms of practice, observance of property rights, qhse compliance and those of the respective free zone authorities. Perspectives on the new uae commercial companies law what do you need to know. Uae president issues decree amending commercial companies. An overview of the uaes new commercial companies law uaes. Business regulations the official portal of the uae. General business commercial laws except the federal law no.
All companies are required to amend their existing memorandumarticles of association to comply with the changes introduced by new ccl. Article 3 the minister of commerce and industry shall issue the executive regulation and orders necessary to implement the. Uae announces significant changes to foreign ownership and. The uae has introduced a more sophisticated corporate regulatory framework with the enactment of the uae federal law no. Uae cabinet approves the positive list of sectors under the. The uaes privatesector firms include 219,735 limited liability companies, 162 public joint stock companies and 60 private joint stock companies. It will henceforth replace the existing law uae federal law no. The uae commercial agencies law regulates the appointment of commercial agents, distributors, and sales representatives in the uae. Uae federal law 2 of 2015 on commercial companies legal. We would like to show you a description here but the site wont allow us. Following the adoption of the new commercial companies law new ccl on 1 july 2015, all uae companies are required to amend their existing memoranda and articles of association articles to mirror and comply with the changes introduced in the new ccl.
The new companies law came into effect on 1 july 2015. Uae president issues decree amending commercial companies law. With the introduction of this law, the old uae federal law no. Business regulations related to mainland companies. The new law accommodates emerging needs of the practice and application of laws. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution, federal law no. The new uae commercial companies law federal law no. Mar 19, 2020 business regulations related to mainland companies. The long awaited new uae commercial companies law federal law no. And the civil and commercial proceedings code promulgated. Perspectives on the new uae commercial companies law. On 1 april 2015, the uae government announced the issue of federal law no. The four main public securities markets in the uae and their accounting requirements are as follows. Are you aware of your duties as a manager or director.
Legislation online in english ministry of justice, uae pdf in english doc. The ccl will come into force by the end of june 2015. Business regulations the official portal of the uae government. Qatar companies commercial law update qatar companies commercial law update know the rules, know your way ahead. Some of the key themes and changes introduced by the new law are highlighted below. The regulations and decisions issued in implementation of the provisions of the federal law no. Uae issues new more flexible 2015 commercial companies. The new ccl is substantially similar to the 20 draft of the commercial companies law and represents an evolution of. The new federal commercial company law of uae 2015 has made many changes in the legal provisions. This briefing note contains an update on legislative and practical. No expatriate can own more than 49% shares in any commercial limited liability company llc. Uae commercial companies law 2015 kothari auditors and. Federal law no 8 of 1984 uae commercial companies law. Amendments to uae commercial companies law 1984 as made.
General businesscommercial laws except the federal law no. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. 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. Following are the facts about mainland companies in uae. Overview of the new commercial companies laws in united. As such the new law comes into effect three months from the date of the publication in the official gazette i. As a general comment, in order to conduct business in mainland uae, foreign investors must either appoint a local agent or establish a company under the uae commercial companies law federal law no 2 of 2015 which requires that any such company must have a uae.