The UAE continues to develop a more sophisticated corporate regulatory regime which has significant implications for government-owned companies, limited liability companies and joint stock companies. All companies are required to amend their memorandum to comply with the new law by 1 July 2016. Any companies that do not make the necessary amendments to their memorandum by 1 July 2016 will be deemed to be dissolved.

Introduction -

UAE Federal Law No. (2) of 2015 Concerning Commercial Companies (the New CCL) was published in the Official Gazette on 31 March 2015 and comes into force on 1 July 2015. The New CCL is substantially similar to the 2013 draft of the Commercial Companies Law and represents an evolution of the UAE’s existing Commercial Companies Law (the Existing CCL) rather than a revolution. The most controversial proposal — to abolish or reduce minimum UAE national participation — was rejected.