The UAE government has made changes to the Commercial Companies Law as part of efforts to improve competitiveness and provide a flexible and robust legal environment.
It has issued a federal decree-law that has introduced the concept of a non-profit company, which reinvests its net profits in achieving its stated objective without distributing them to partners or shareholders, the Government Media Office said on Tuesday.
“This further enables social and developmental sectors to operate within a flexible and transparent institutional framework,” it said in a statement.
The regulation also provides advanced capital structure options through multiple categories of shares and stakes. These cover rights such as voting, profit distribution, priority of redemption and liquidation, as defined in the articles of incorporation or bylaws.
Abu Dhabi sees 50% surge in global company registrations 00:48
“This represents a significant step forward in corporate governance and supports private capital investment,” the statement said.
Another amendment regulates delocalisation of UAE companies – overseeing registration changes between the seven emirates and financial free zones, while maintaining legal status.
“It establishes clear requirements and procedures for the process, which enhances the free movem
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