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 uae government intends that the new law will provide uptodate regulations for the corporate. 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. A new commercial companies law replaced most of federal law no. 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. Any text in any other law to the extent that it contradicts this law shall be repealed.
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. Abu dhabi, dubai, sharjah, ras al khaimah, umm al quwain, ajman and fujairah. Amendment of the uae trademarks law home easyway ip. The new uae companies law dla piper global law firm. In our 2012 briefing notes we highlighted the key changes in the 2011 draft ccl from the uae federal law no. Hh sheikh khalifa bin zayed al nahyan, president of the uae and ruler of abu dhabi issued the federal decree law no. After years of speculation regarding an overhaul of commercial companies law in the uae, federal law no. Addendum united arab emirates our code, as well as this addendum, is provided as guidance in conducting your l3.
No natural person or bodycorporate is allowed to work as an agent or supplier of non national employees unless he has a license to do so. 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. 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. Company law best law firm in uae, legal consultants in.
The corporate law in the uae governs the establishment, ownership and management of companies in dubai and the rest of the emirates. Business laws in the uae abu dhabi government portal. After perusal of the provisions of the provisional constitution. What are the key recent developments affecting doing business in your jurisdiction. The new uae commercial companies law federal law no. Dubais company act was first enabled in 1984 and ever since it has gone.
Uae commercial company law and legal reforms general rules. The applicable provisions of the cpc are not based on the uncitral model law. The purpose of the new legislation was to bringing the uae up to speed with corporate legislation currently enacted in many developed. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. The uae s rank propelled from 118 to 44 as a result of numerous policies taken on in the last couple of years.
Under the new law, the size of primary offerings was capped at 70% of the share capital of the company. 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. A new regime for the regulation of anticompetitive behaviour in the united arab emirates uae was introduced by the federal law no. As such the new law comes into effect three months from the date of the publication in the official gazette i. 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. Uae federal government has laid out specific rules to govern the legality of various types of companies in uae. The most relevant trigger for this procedure relates to a substantial loss of capital. The competition law came into force on 23 february 20 and introduces. The most common form used for foreign direct investment into the uae is the limited liability company llc.
Uae federal law 8 of 1980 concerning the regulation of. 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. 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. Uae companies law 2014,companies law uae downloan pdf,pdf. Uae labour law uae labour law disclaimer this english language text is not an official translation and is provided for information purposes only. Concerning trade marks we, zayed bin sultan al nahyan, uae president, after perusal of the constitution. Initial public offerings under the new uae commercial. The commercial transactions law promulgated by federal law no. Entrepreneurship policies in the united arab emirates wikipedia. It confers no rights and imposes no obligations separate from those conferred or imposed by the original arabic legislation formally adopted and published.
Searching for article no 60 of the federal law no 8 of 1980 in uae. In the united arab emirates case study consumer protection law no. Companies and corporations are a essential to any economy. There are special labour related regulations applicable in some of the free zones 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. This means that their personal possessions are at risk. When dealing with the government of dubai, its establishments, authorities and agencies, and corporations affiliated to or owned by the government and departments, the negotiating ability of a contractual counterparty and the enforceability of the counterpartys preferred contractual provisions is affected by special legislative acts passed at the. Federal law no 8 of 1984 uae commercial companies law. 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. Company law, one must also respect the provisions of federal law no. There are basically 7 types of legal entities under commercial law company lawof uae. 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 offshore laws consultant for uae free trade zone. Jul 01, 2015 while the nccl replaces the previous commercial companies law uae federal law no. Following publication of the law on 27th march, 2004 federal law no. Commercial agency under uae commercial agency law the uae federal no. Issuing the commercial transactions law we, zayed bin sultan al nahyan, president of the united arab emirates state. We, zayed bin sultan al nahyan, president of the united arab emirates. 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. Article 10 in the event of nonavailability of national workers, preference shall be given to. Article 11 this law shall be published in the official gazette and shall become effective from the date of publication. Uaes first nuclear power plant is expected to be operational by later this year. Article no 60 of the federal law no 8 of 1980 in uae. The inadequacy of consumer protection in the uae brunel.
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. Zayed bin sultan al nahyan, president of the united arab emirates state, pursuant to the perusal of the provisional constitution. Reproduced with permission from law business research ltd. Company law best law firm in uae, legal consultants in dubai. 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 long anticipated uae federal commercial companies law no. The new ccl was introduced in july as federal law no. At the beginning of the year, the uae government announced a new company law would be set in place. Business regulations the official portal of the uae. We, khalifa bin zayed al nahyan, president of the united arab emirates state. We zayed bin sultan al nahyan, president of the united arab emirates, with cognizance. Uae commercial companies law define the general provisions of the uae companies like general partnership. The publishers accept no responsibility for any acts or omissions contained herein. Failing this, a third meeting should be called 30 days after the. The ccl requires nearly all types of foreignowned companies in the uae. Others may not by employed in the united arab emirates except as provided for in this law and its executive orders. The new ccl sets out a clear explanation to its applicability and explicitly lists the kind of companies that are covered within its scope. While the nccl replaces the previous commercial companies law uae federal law no. Oct 28, 20 welcome to the global workplace insider, a cuttingedge blog led by the global employment and labor team of norton rose fulbright, designed to deliver diverse insight on legal and business developments and trends impacting employment and labor matters in various regions across the globe.
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. The united arab emirates uae is a federation established in 1971 in the area previously known as the trucial coast in the arabian gulf. Jul 03, 2019 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. The issue of secondary offerings was not addressed under the old commercial companies law federal law no. New uae commercial companies law applicable for llcs. Federal law no 20 of 2016 on the mortgage of movable porperty to secure debt. The labour law applies to all employees working in the uae, including foreign employees working in the uae. It will henceforth replace the existing law uae federal law no. 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. Disposing of shares in a company in breach of the law and performance of commercial. 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. 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. It replaces the existing commercial companies law, uae federal law no. Amendment of the uae trademarks law federal law no.
Uae company law no 8 of 198421 limited liability company. United arab emirates corporate law regulates the governance, finance and power of corporations in the united arab emirates uae through uae law. The following is a snapshot of the key developments brought about by the ccl in relation to llcs. Jamal al sumaiti director general, dji emirates law business and practice. While there was some debate that a new law on arbitration may be enacted soon, and it was understood that this law would be based largely on the uncitral model. 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. Restructuring and insolvency in the united arab emirates. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. Uae company law no 8 of 198421 free download as pdf file. Page 1 of 4 decision of chairman of municipal affairs department no. We, zayed bin sultan al nahyan, president of the united arab emirates, pursuant to the perusal of the provisional constitution. He is liableresponsible to the extent of his own personal assets for the businesss debts.
A company that does not take any of the types referred to in the. An overview of the uaes new commercial companies law uaes. 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. Uae commercial company law and legal reforms general. Work is a right of the united arab emirates nationals. Uae agency law posted on may 10, 2017 august 21, 2017 by admin federal law no. On 25 march 2015, the new uae commercial companies law uae federal law no. 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. The provisions of this law shall not apply to the parts of plants listed. 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.
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