The UAE offers a supportive and effective legal framework for businesses in-line with vision of country\’s leadership that is on par with international standards, and is essential for a competitive and prosperous economy.
New Federal Law on Commercial Companies
This new federal law on commercial companies makes it mandatory for all companies to develop a general framework for corporate governance to ensure protection of shareholder rights, disclose financial data, achieve transparency and improve efficiency and integrity of company’s director board.
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The Economic Substance Regulations
The Economic Substance Regulations (ESR) is in line with UAE’s commitment to the international tax cooperation and transparency. The regulations require UAE\’s onshore and free zone companies and other business forms that carry out any of the \’Relevant Activities\’ listed in the regulations\’ framework to maintain an adequate ‘economic presence’ in the UAE relative to the activities they undertake \’Economic Substance Test.\’
Business regulations related to mainland companies
The UAE Federal Law No. 2 of 2015 on Commercial Companies , as amended applies on any economic entity which practice any commercial, financial, industrial, agricultural, real estate or other kinds of economic activity on the mainland except the following:
- companies excluded by resolution of the UAE Cabinet
- companies wholly owned by federal or local governments and companies held in full by such companies, if a special provision to this effect mentioned in the company\’s memorandum
- companies operating in certain oil, gas and power sectors in which the federal or local government directly or indirectly holds 25percent, provided a provision to this effect is mentioned in its MoA.
Limited Liability Company in Dubai
Law stipulates that such a company can engage in any lawful activity, except banking, insurance and investment of money for others. Foreign investors are allowed to hold an equity ownership in the UAE companies, provided, 51% of equity is held at all times by UAE nationals.
With many years of experience within the UAE, our corporate lawyers in UAE are considered experts with vast knowledge and understanding of the local business and Legal Circumstances.
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