UAE allows companies to transfer registration between emirates
The UAE has amended its Commercial Companies Law, allowing companies to transfer their registrations between the seven emirates and financial free zones.
The federal decree-law sets clear rules and procedures for delocalisation of companies, the UAE state-run Wam news agency reported.
A decree-law is a decree issued by a ruler or ministry and enforced by the legislature.
The move will enhance the free movement of businesses, expand economic activities within the country, reduce commercial disputes and protect the rights of minority shareholders, the report said.
As part of the new rules, privately-owned companies will be allowed to sell shares to selected investors inside the country, even if they are not listed on the stock exchange. This will allow them to raise money without having to turn into a publicly traded company.
The decree-law also allows for the establishment of non-profit companies that can reinvest their profits to help achieve their goals, rather than paying out to partners or shareholders.
The decree-law is part of the UAE’s push to modernise its commercial laws, support innovation and investment, and strengthen its competitiveness regionally and globally, the statement said.
Further reading:
- UAE can navigate global volatility, IMF says
- Tax change may spur Emirati companies to focus on home
- Finance cluster aims to add $15bn to Abu Dhabi GDP
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