UAE Federal Government – Issues New Companies Law
On 1 July 2015, the United Arab Emirates (UAE) issued a new Commercial Companies Law.
From an international investment perspective, the Commercial Companies Law does not relax the company foreign ownership restrictions in the UAE contained in the existing UAE Companies Law.
The major changes adopted in the new Commercial Companies Law are as follows:
•Allowing sole shareholder limited liability companies (LLCs) and private joint stock companies ;
•Exempting government-owned companies from the New Commercial Companies Law if the company includes a provision in their memorandum to that effect;
•Allowing partners in LLCs to pledge their interests in LLCs;
•Allowing certain non-pre-emptive share issuances by joint stock companies (JSCs);
•Allowing founders to list their businesses, but retain 70% of the shares.
