UAE implements revised Commercial Companies Law

The United Arab Emirates' (UAE) Minister of Economy, Sheikh Bin Touq, announced the implementation of a new law, Federal Decree No. 20 of 2025, which aims to support the growth of private companies and fundamentally strengthen the investment environment.

The amendments amend 15 articles of the Commercial Companies Law (Law No. 32 of 2021) and introduce new provisions that allow company registrations to be transferred between emirates and free zones. This allows registrations to be transferred while maintaining legal personality and contractual relationships, eliminating the need for re-incorporation or liquidation, thereby facilitating business continuity and market entry.

The Act also legally allows limited liability companies (LLCs) and public and private joint-stock companies to establish multiple equity and share classes, significantly increasing flexibility in ownership structures, profit allocations, and voting rights designs.

This measure is part of "We the UAE 2031," a national vision to double the size of the economy by 2031. By simultaneously promoting simplification of legal procedures and digitalization, the government aims to attract a wide range of investment, from startups to multinational corporations.

© WAM