The UAE government issued Federal Law No. 8 of 1984 regarding commercial companies. Due to the country’s commitment to economic development, investment, and attracting investors, the Commercial Companies Law has undergone several amendments. The latest amendment in 2021 by Decree No. 32 enabled foreigners to own 100% of economic sectors.
The law defines Special Purpose Acquisition Companies (SPACs) as public joint-stock companies classified by the Securities and Commodities Authority for the purpose of mergers and acquisitions, exclusively as per its decision. This mechanism in the 2021 UAE Commercial Companies Law facilitates swift entry for non-public joint-stock companies into financial markets through mergers with SPACs or their acquisition. The latter must be listed on financial markets, making non-public joint-stock company owners shareholders in the SPAC without conducting an initial public offering of their shares.
The UAE legislator defines Special Purpose Vehicles (SPVs) as companies established to segregate obligations and assets related to a specific financing transaction from the commitments and assets of the person who established it. SPVs are used in credit, borrowing, securitization, bond issuance, risk transfer related to insurance operations, reinsurance, and derivatives, according to the regulations of the regulatory authority for this activity.
Objectives of the Commercial Companies Law:
This decree-law aims to contribute to the development of the business environment, the country’s capabilities, and its economic status by regulating companies in line with global changes, especially regarding governance rules, protecting the rights of shareholders and partners, supporting foreign investment flow, and enhancing corporate social responsibility.
Types of Companies in the UAE Commercial Companies Law:
- Partnership Company
- Simple Recommendation Company
- Public Joint-Stock Company
- Private Joint-Stock Company
- Limited Liability Company
Sendeyyah Al Hantoobi advocates and Legal Consultations is among the best companies formation offices in Dubai, with legal consultants having sufficient experience in drafting and formulating company establishment contracts to ensure the rights of investors in the country.
Key Benefits
Hiring a business law firm in the UAE, such as Sendeyyah Al Hantoobi Advocates and Legal Consultants, offers several key benefits. Firstly, having legal experts on your side ensures compliance with local laws and regulations, reducing the risk of penalties or legal disputes. Secondly, a business law firm can guide corporate structuring, contract drafting, and negotiation, helping you make informed decisions and protect your interests. Thirdly, in case of disputes or litigation, a business law firm can represent you in court, increasing your chances of a favorable outcome. Lastly, by outsourcing legal matters to professionals, you can focus on core business activities, saving time and resources.
When it comes to contract drafting and negotiation in the UAE, a business law firm like Sendeyyah Al Hantoobi Advocates and Legal consultants can provide valuable assistance. Their experienced lawyers can review, and draft contracts tailored to your specific needs, ensuring clarity and enforceability. They can also negotiate terms and conditions on your behalf, aiming to achieve favorable outcomes and protect your interests. With a deep understanding of UAE business laws and practices, a business law firm can help you navigate complex contractual issues and minimize risks.
Corporate structuring is a crucial aspect of doing business in the UAE, and a business law firm can play a pivotal role in this process. Sendeyyah Al Hantoobi Advocates and Legal Consultants can advise on the most suitable legal structures for your business, such as limited liability companies, free zone entities, or branches of foreign companies. They can assist with company formation, registration, and licensing requirements, ensuring compliance with local regulations. By seeking professional guidance, you can optimize your corporate structure to maximize operational efficiency, protect assets, and minimize tax liabilities.
Resolving disputes and litigation in the UAE can be complex, but with the assistance of a business law firm, the process can be smoother. Sendeyyah Al Hantoobi Advocates and Legal Consultants can provide legal representation and guidance throughout all stages of dispute resolution, including negotiation, mediation, arbitration, and litigation. Their expertise in UAE laws and court procedures can help you navigate through the intricacies of the legal system. By engaging a business law firm, you can increase your chances of achieving a favorable resolution and protect your business interests effectively.