Commercial Companies Law: The law allows investors and entrepreneurs to establish and fully own onshore companies in all sectors, excluding a small number of reserved “strategic activities”. The amendment aims at boosting the country’s competitive advantage as a part of a wider UAE government agenda to economic diversification towards an innovation-led and knowledge-based economy.
The new Commercial Companies Law aims to increase foreign direct investment (FDI) and reaffirms the UAE’s standing as a leading business hub regionally and globally.
The law was issued to introduce certain amendments concerning Commercial Companies: it specifies the companies that are exempted from the provisions thereof, as well as corporate governance and strategic activities.
The law further details the approvals and licenses required by companies in order to undertake commercial activities within the UAE; in addition to the company’s name, contract, incorporation procedures, and conditions for increasing and decreasing the capital.
The law also clarifies the responsibilities of the board of directors, executive management, the authorities of the general assembly, the prerequisites for issuing bonds and instruments, acquisitions and the administrative penalties imposed on a person deemed to be in breach of its provisions.
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