UAE Companies Commercial Law
by Al Mubasheri | February 2015
UAE company law has evolved over time with the promulgation and implementation of the Company Law in 1984. Prior to this law, companies were established according to the local laws and practices of the Municipalities and local authorities in the emirate they were established in. these laws, rules and practices provided that any person or entity intending to conduct business activities | the UAE had to register in the Commercial Register organized by the Competent Authority which was usually the Municipality of the Emirate.
The first prerequisite was to acquire the requisite trade license issued by the Municipality Department in the particular Emirate where the business was to be carried out, with the exception of business with an exemption from the Ruler of an Emirate or operating by special concession.
It was important for foreign individuals or companies wishing to establish a presence in the UAE to acquire a trade license issued by the relevant Municipality. Foreign companies could only acquire one license, while UAE nationals could obtain as many trade licenses as their business required.
After the UAE Company law was published in 1984, the Ministry of Economy and Commerce was charged with the task of implementing the law. All companies operating in the UAE were required to conform to the new law. This law classified companies in to 7 types companies with incorporation requirements specified for each type. There was also an inclusion of a special chapter of the law that provides for the registration of foreign companies in the UAE.
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