New Commercial Companies Law (Federal Decree-Law No. 32 of 2021) came into effect in 2022, allows 100% foreign ownership in mainland companies. It abolishes the requirement for local service agents in many sectors and it set new governance standards for shareholding companies.
The impact of commercial company law in UAE Businesses
→ Existing businesses with local agent arrangements may need restructuring.
→ New governance requirements affect board composition and decision-making processes.
→ Changes to shareholder rights and responsibilities.
→ Impacts how businesses can raise capital and transfer ownership.
Check Compliance as per commercial company law in UAE
Step 1:Review current company structure against new law requirements.
Step 2:Consult with legal advisors specializing in UAE corporate law.
Step 3:Amend Memorandum of Association (MOA) if necessary.
Step 4:Update internal governance documents and processes.
Step 5:File amendments with relevant authorities (Department of Economic Development).
Key Reminders
→ Deadline for compliance was January 2023, but some businesses may still need adjustments.
→ New rules apply differently to various company types (LLC, PJSC, etc.).
→ Local agent contracts may need renegotiation or termination.
→ Professional license holders (doctors, engineers, etc.) have specific requirements.
