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UAE GOVERNMENT UPDATES
THE MINISTRY OF ECONOMY LAUNCHES:
THE PROMINENT FEATURES & INCENTIVES GRANTED TO INVESTORS e Prominent Features and Incentives Granted to Investors on the
ON THE FEDERAL DECREE LAW NO. (26) OF 2020 REGARDING THE NEW Federal Decree Law No. (26) of 2020 regarding the New Amendments of AMENDMENTS OF FEDERAL LAW NO. (2) OF 2015 ON COMMERCIAL COMPANIES Federal Law No. (2) of 2015 on Commercial Companies
Full Ownership of all Economic Sectors with Exception of Strategic Impact Activities
Allowing companies and investors of various nationalities the possibility of full ownership in all economic sectors, including industry, agriculture, services and others, with the exception of some sectors which are of a strategic impact.
Full Ownership of all Legal Forms of Companies
Granting ownership in all the legal forms mentioned in the Commercial Companies Law, which are (Joint Liability Companies, Simple Commandite Companies, Limited Liability Companies, Public Joint Stock Companies, Private Joint Stock Companies).
Possibility of Ownership in Sectors with a Strategic Impact under Certain Legislations
Granting companies and investors of various nationalities the possibility of owning and taking part in the management with the companies that are of a strategic impact, with the authorization of the competent authority to determine a certain percentage of Emiratization in the capital or as boards of directors of all companies that are of a strategic impact that are established within their jurisdiction. In addition, the Council of Ministers may, upon the request of the Ministry of Economy or the concerned authority, grant an exception to any company whose activities are regulated under special legislation from any conditions regarding the percentage of Emiratization ownership or their participation in the management of that company.
Practicing Banking and Insurance Businesses in all Legal Forms for Companies
Granting investors the possibility of engaging in banking and insurance business for other than public joint-stock companies, only if permitted by the special laws or decisions issued regulating those activities.
No Obligations for a Limited Liability Company to be with the Name of its Owner
e absence of the obligation of (the limited liability company - a single person company) to associated with the name of its owner.
ON THE FEDERAL DECREE LAW NO. (26) OF 2020 REGARDING THE NEW AMENDMENTS OF FEDERAL LAW NO. (2) OF 2015 ON COMMERCIAL COMPANIES
Absence of the need of a Local Service Agent
e absence of the need for a local service agent for branches of foreign companies wishing to e Prominent Features and Incentives Granted to Investors conduct its activities in the country. on the Federal Decree Law No. (26) of 2020 regarding the New Amendments of Federal Law No. (2) of 2015 on Commercial Companies
Freedom of Settling Disputes
Granting the investor the freedom to choose methods of resolving disputes between partners by specifying these methods within the company's articles of incorporation.
No minimum capital required for limited liability companies, unless a decision is issued by the UAE Cabinet specifying this or according to what is specified in the articles of association of the company.
One or more partners who own (10%) of the shares in the limited liability company at least may request the director or authorized managers to call the general assembly to convene instead of 20%.
Extending the Period of Announcing the Invitation to the general assembly to 21 days before instead of 15 days for the LLC Company
e invitation to the meeting of the General Assembly of the Limited Liability Company shall be announced 21 days before the method in which a decision is issued by the Minister, with the partners being notified by official letters or through modern technology means stipulated in the company's articles of incorporation and the competent authority shall be notified of a copy of the invitation papers for the general assembly meeting before the announcement. .
Holding General Assembly Meetings remotely for the LLC company
It is permissible to hold general assembly meetings of the Limited Liability Company and vote on its decisions by means of modern technology to attend remotely.
ON THE FEDERAL DECREE LAW NO. (26) OF 2020 REGARDING THE NEW AMENDMENTS OF FEDERAL LAW NO. (2) OF 2015 ON COMMERCIAL COMPANIES
e Legal Quorum for the Assembly Meeting of the LLC Company 50% instead of 75% of the Capital Shares
e legal quorum for the assembly meeting for the limited liability company has become 50% e Prominent Features and Incentives Granted to Investors instead of 75% of the capital shares, and a larger percentage may also be specified in the articles of on the Federal Decree Law No. (26) of 2020 regarding theassociation New Amendments of Federal Law No. (2) of 2015 on Commercial Companies
Possibility of an urgent Judgment from the Court to Save the LLC from Liquidation
e right of any partner in the Limited Liability Company to obtain an urgent judgment from the court to increase the capital to the extent necessary to save the company from liquidation in the event that it does not have sufficient liquidity to pay the debts of the company.
Possibility for any Increase in the Issued Capital of the Public Shareholding Company within 3 Years
e public joint stock company may pay any additional amount on the shared capital within 3 years from the date of issuance, provided that all previous issued capital has been paid before the additional amount was issued.
Flexibility in Capital Reduction Requirements for the Public Joint-Stock Company
e possibility of reducing the capital of the public joint stock company according to the terms and conditions issued by the Securities and Commodities Authority.
e absence of a requirement that the chairman and the majority of the members of the board of directors be of the nationality of the UAE, which gives the foreign investor the right to control the entire membership of the boards of directors of joint-stock companies unless a decision is issued by the UAE Cabinet or the competent authority stipulating otherwise.
Allow all Members of the Board of Directors of the Public Shareholding Company to be Non-Shareholders
All members of the board of directors of the joint-stock company may be experienced non-shareholders without a maximum limit.
ON THE FEDERAL DECREE LAW NO. (26) OF 2020 REGARDING THE NEW AMENDMENTS OF FEDERAL LAW NO. (2) OF 2015 ON COMMERCIAL COMPANIES
Absence of Requirement the Approval of the Securities and Commodities Authority to Amend the Memorandum of Association or Articles of Association of the Public Shareholding Company e Prominent Features and Incentives Granted to Investors e approval of the Securities and Commodities Authority is not required to amend the Articles of Association or Articles of Association of the Public Shareholding Company. Rather, the on the Federal Decree Law No. (26) of 2020 regarding the company must provide the competent authority with a copy of the decision to amend the Memorandum of Association or its Articles of Association. New Amendments of Federal Law No. (2) of 2015 on Commercial Companies
Allowing Financial Institutions to Provide Loans to Board Members
Exclusion of financial institutions subject to the control and supervision of the Central Bank from the prohibition of extending loans to members of the Board of Directors of the joint-stock company.
e board of directors shall invite the general assembly to convene at the request of one or more shareholders who own at least 10% of the company's shares instead of 20%, and the assembly shall be held within a period not exceeding (30) days from the date of the announcement of the meeting.
ere is no Limit for the Number of Shareholders in the Private Joint Stock Company
A private joint stock company is a company in which the number of shareholders is not less than two and no maximum number of shareholders has been set.
Restructuring the Company in Light of Accumulated Losses
Permitting the restructuring of the company if the company’s board of directors recommends continuing with the company's activity in light of the company's accumulated losses amounting to half of its issued capital.
Granting the Investor any of the Following Actions:
01
02 e introduction of a partner or a number of partners. Transfer of company ownership. 03
04
05 Changing the legal form of the company. Mergers and acquisitions. Liquidation.
