Federal law no 8 of 1984 uae commercial companies law. Article 10 in the event of nonavailability of national workers, preference shall be given to. Company law best law firm in uae, legal consultants in. The united arab emirates uae is a federation established in 1971 in the area previously known as the trucial coast in the arabian gulf. The new uae commercial companies law federal law no. Starting a new forprofit company in the united arab emirates, one of the 10 doing business indicators, became much simpler and quicker from 2000 to 2010, according to the 2010 report. In the united arab emirates case study consumer protection law no. Zayed bin sultan al nahyan, president of the united arab emirates state, pursuant to the perusal of the provisional constitution. A company that does not take any of the types referred to in the preceding article shall be null and void, and the individuals who enter into a contract in its name shall be personally and jointly answerable for the liabilities arising from such contract. As i hope you will see from this issue of our magazine, when it comes to energy, there is a lot more to the uae than simply oil and gas these days. The purpose of the new legislation was to bringing the uae up to speed with corporate legislation currently enacted in many developed. An overview of the uaes new commercial companies law uaes. The most relevant trigger for this procedure relates to a substantial loss of capital. According to article 3 of the law, the law applies to all staff and employees working in the united arab emirates, whether uae national or expatriate.
Company law best law firm in uae, legal consultants in dubai. Addendum united arab emirates our code, as well as this addendum, is provided as guidance in conducting your l3. What are the key recent developments affecting doing business in your jurisdiction. United arab emirates corporate law regulates the governance, finance and power of corporations in the united arab emirates uae through uae law. The uae s rank propelled from 118 to 44 as a result of numerous policies taken on in the last couple of years. Abu dhabi, dubai, sharjah, ras al khaimah, umm al quwain, ajman and fujairah. In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise. The new law new ccl was published in the official gazette on 31 march 2015 issue number 577 and will come into force three months thereafter. Federal law no 20 of 2016 on the mortgage of movable porperty to secure debt.
Uae commercial company law and legal reforms general. The competition law came into force on 23 february 20 and introduces. There are special labour related regulations applicable in some of the free zones in the uae. Restructuring and insolvency in the united arab emirates. 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 uae government intends that the new law will provide uptodate regulations for the corporate. 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. Jamal al sumaiti director general, dji emirates law business and practice. The board of directors shall assume all the powers necessary to execute the businesses required in satisfaction of the company objectives, save such powers as may be vested by the law or the company articles of association in the general assembly.
No company may be registered in a name previously registered in the state or in any similar name to the extent that it may lead to confusion. The commercial transactions law promulgated by federal law no. Uae commercial companies law define the general provisions of the uae companies like general partnership. After years of speculation regarding an overhaul of commercial companies law in the uae, federal law no. In our 2012 briefing notes we highlighted the key changes in the 2011 draft ccl from the uae federal law no. Article no 60 of the federal law no 8 of 1980 in uae.
The inadequacy of consumer protection in the uae brunel. 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 of the business climate and the uaes commercial. Uae companies law 2014,companies law uae downloan pdf,pdf. The new ccl was introduced in july as federal law no. Uae labour law uae labour law disclaimer this english language text is not an official translation and is provided for information purposes only. Commercial companies law update j u n e 2 0 1 7 in brief t he u a e m i n i s t r y of e c on om y ha s i s s u e d r e s ol u t i on no. The applicable provisions of the cpc are not based on the uncitral model law. The labour law applies to all employees working in the uae, including foreign employees working in the uae. 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 be compliant with the provisions of the new ccl. Hh sheikh khalifa bin zayed al nahyan, president of the uae and ruler of abu dhabi issued the federal decree law no.
It confers no rights and imposes no obligations separate from those conferred or imposed by the original arabic legislation formally adopted and published. The publishers accept no responsibility for any acts or omissions contained herein. Commercial agency under uae commercial agency law the uae federal no. Initial public offerings under the new uae commercial. The scope of the application of the ccl applies to all commercial companies that are incorporated within the uae, foreign companies including branch of foreign companies and representative offices. Uae agency law posted on may 10, 2017 august 21, 2017 by admin federal law no. This means that their personal possessions are at risk. A new commercial companies law replaced most of federal law no. Searching for article no 60 of the federal law no 8 of 1980 in uae. Dubais company act was first enabled in 1984 and ever since it has gone. 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.
On 25 march 2015, the new uae commercial companies law uae federal law no. It will henceforth replace the existing law uae federal law no. Page 1 of 4 decision of chairman of municipal affairs department no. The new uae companies law dla piper global law firm. Amendment of the uae trademarks law home easyway ip.
The ccl requires nearly all types of foreignowned companies in the uae. While the nccl replaces the previous commercial companies law uae federal law no. Business regulations the official portal of the uae. Jul 01, 2015 while the nccl replaces the previous commercial companies law uae federal law no. Issuing the commercial transactions law we, zayed bin sultan al nahyan, president of the united arab emirates state. The provisions of this law, known as uae labour law, govern the relationship between employers and employees and other labour matters in the united arab emirates. We, zayed bin sultan al nahyan, president of the united arab emirates, pursuant to the perusal of the provisional constitution. There are basically 7 types of legal entities under commercial law company lawof uae. Uae federal law 8 of 1980 concerning the regulation of. Any text in any other law to the extent that it contradicts this law shall be repealed.
To accommodate the rapid expansion of the several free zones established in the uae and, for practical purposes, provide exemption to companies or joint ventures established in specific areas, the provisions of article 2 of federal law company law no. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. Disposing of shares in a company in breach of the law and performance of commercial. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. Through this page, you can read about the laws issued by the uae government laws over the years on budget preparation, the formation of the uae cabinet, value added tax vat, the establishment of the federal tax authority and bankruptcy. Uae company law no 8 of 198421 limited liability company. Business laws in the uae abu dhabi government portal. As such the new law comes into effect three months from the date of the publication in the official gazette i.
Article 11 this law shall be published in the official gazette and shall become effective from the date of publication. It replaces the existing commercial companies law, uae federal law no. Uaes first nuclear power plant is expected to be operational by later this year. Dubais company act was first enabled in 1984 and ever since it has gone through several changes in order to provide local and foreign investors with a suitable business environment.
Entrepreneurship policies in the united arab emirates wikipedia. Work is a right of the united arab emirates nationals. Uae company law no 8 of 198421 free download as pdf file. A company that does not take any of the types referred to in the. A new regime for the regulation of anticompetitive behaviour in the united arab emirates uae was introduced by the federal law no. We zayed bin sultan al nahyan, president of the united arab emirates, with cognizance. The long anticipated uae federal commercial companies law no. The issue of secondary offerings was not addressed under the old commercial companies law federal law no. Under the new law, the size of primary offerings was capped at 70% of the share capital of the company. As usual, the arabic text of the new ccl will prevail over the english version so a proper assessment of the updated clauses is necessary. Companies and corporations are a essential to any economy. 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 provisions of this law shall not apply to the parts of plants listed. We, khalifa bin zayed al nahyan, president of the united arab emirates state. Failing this, a third meeting should be called 30 days after the. Others may not by employed in the united arab emirates except as provided for in this law and its executive orders. After perusal of the provisions of the provisional constitution. We, zayed bin sultan al nahyan, president of the united arab emirates.
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. Welcome to, your partner for building up a career in dubai uae which also includes other areas of united arab emirates uae like sharjah, abu dhabi, al ain, ras al khaimah, fujairah, um al quwain. The most common form used for foreign direct investment into the uae is the limited liability company llc. Uae offshore laws consultant for uae free trade zone.
The following is a snapshot of the key developments brought about by the ccl in relation to llcs. A number of key changes were brought about by the enactment of the ccl, which introduced new legal concepts into the uaes corporate framework and impacted established market practices. Amendment of the uae trademarks law federal law no. Company law, one must also respect the provisions of 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. The corporate law in the uae governs the establishment, ownership and management of companies in dubai and the rest of the emirates. Uae commercial company law and legal reforms general rules. He is liableresponsible to the extent of his own personal assets for the businesss debts.