Uae federal government has laid out specific rules to govern the legality of various types of companies in uae. 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. Following several years of discussion, consideration and preparation, the new commercial companies law 22015 was issued on march 25 2015 and came into force three months following its issuance date, repealing the old commercial companies law 8 1984. 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. 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. The new uae ccl has brought in several new changes to the previous legislation. Uae antifronting law uae commercial companies law sta. The uae government intends that the new law will provide uptodate regulations for the corporate.
Uae companies law and recent amendment speakers profile panelist name. Padmanabha acharya designation partner organisation. He has over twenty years of experience in assurance and advisory services, of which a considerable amount was gained in the uae. The corporate law in the uae governs the establishment, ownership and management of companies in dubai and the rest of the emirates.
We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. Overview of the new commercial companies laws in united. The uae has introduced a new commercial companies law uae federal law no. Companies and corporations are a essential to any economy. New uae commercial companies law applicable for llcs. While the nccl replaces the previous commercial companies law uae federal law no. However, the underlying framework of the current ccl remains largely intact and the new ccl anticipates and relies on the later publication of certain.
Business regulations related to mainland companies. As such the new law comes into effect three months from the date of the publication in the official gazette i. Top dubai property lawyers, law firms in dubai proconsult. 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. Companies where all the joint partners of any of such companies shall be uae. Although expatriate investors can own one hundred percent shares in free zone companies, the law stipulates that certain entities require. A corporate entity or an individual can be the only shareholder of a limited liability company. After perusal of the basic law of the state promulgatedby royal decree no. After years of speculation regarding an overhaul of commercial companies law in the uae, federal law no. 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. Amendments to uae commercial companies law 1984 as made. It is mandatory for all companies to amend memorandum of association. The following is a snapshot of the key developments brought about by.
Briefing series on the draft uae commercial companies law. Published on 03 september 2018 by editor himsoft 460 downloads. Business regulations the official portal of the uae. Even though the company is owned by its members, it is regarded as different from those members. 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. Federal law no 8 of 1984 uae commercial companies law. Uae commercial companies law 2015 kothari auditors and.
Broadly similar to the old ccl in terms of structure and company types no change to the foreign ownership restrictions introduction of single member companies, holding companies and common investment funds amended provisions on general meetings for llcs. A new commercial companies law replaced most of federal law no. The uae federal government has issued a decree amending article 227 of the uae commercial companies law, federal law no. New law a company may be incorporated or held by a single person.
Upon incorporation, a company becomes a body corporate and assumes a separate identity in law distinct from those of its members. The new ccl contains a number of new concepts and clarifications to federal. In this briefing note, we comment on the key provisions of the new ccl and compare. Companies that fail to make the amendments by 30 june 2016 will be deemed as. All companies are required to amend their existing memorandumarticles of association to comply with the changes introduced by new ccl. There are basically 7 types of legal entities under commercial law company law of uae. Earlier law there was no provision of ownership by one person company. 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. The law in a sense throws a veil between the company and its membersshareholder.
The new uae commercial companies law federal law no. There have also been several drafts available for discussion. The law regulates and provides for different forms of commercial entities investors can choose from. 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 uae s commercial companies law no. The provisions of this law shall apply to commercial corporations established in. Uae commercial transactions federal law no 18 of 1993. Article 3 the minister of commerce and industry shall issue the executive regulation and orders necessary to implement the. 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. It will henceforth replace the existing law uae federal law no. I nvestors interested in forming their companies are required to comply with the provisions of the uae commercial companies law of 1984, as amended the law.
The uae commercial companies law in its final stage al. The trio a macedonian and two croatians conned an indian salesman and embezzled six million indian rupees dh324,000 in august. The draft ccl introduces some significant changes to federal law no. Investors interested in forming their companies are required to comply with the provisions of the uae commercial companies law of 1984, as amended the law. Perspectives on the new uae commercial companies law what. The new ccl sets out a clear explanation to its applicability and explicitly lists the kind of companies that are covered within its scope. The commercial companies law introduces very specific, strategic modifications, designed to modernise the regulation of uae commercial activities in. Download pdf, 416 kb uae commercial companies federal law no. Uae companies law 2014,companies law uae downloan pdf,pdf. 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. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. While the old law did provide for the companies that.