The legal system in Dubai is based on the principles of Civil Law. Different laws are brought together in a number of important codes that provide the general principles of law in that particular domain. The Dubai Commercial Code regulates business activities, defines the existing legal entities and regulates the way in which entrepreneurs and merchants can carry on commercial activities in Dubai.
Our lawyers in Dubai can offer counselling in any commercial matter.
The Commercial Code in Dubai contains issues regarding private law and public law. The Code laws set forth the principles for engaging in commercial activities in Dubai, such as the law for foreign investments, the competition law, the law on commercial companies, the law on commercial arbitration and other basic business laws in Dubai.
The Code also defines the free trade zones in Dubai and describes the ownership principles available for foreign investors in and outside of these special investment areas.
According to the Commercial Code, there are five types of business entities that can be established by foreign business owners interested in starting a business in Dubai. Also, according to the law, a company established in Dubai (except for companies established in the free trade zones) must have one or more UAE national partners who will hold at least 51% of the company’s capital. Hiring employees for companies in Dubai and/or concluding various contracts and agreements are defined in the Code.
The Code also regulates the principles for dealing with commercial disputes and the courts in Dubai responsible for solving such legal matters. The basic requirements for doing business in Dubai are also regulated by the Code, including commercial licenses and professional licenses in Dubai.
After several years in which the UAE Government has tried to provide a pro-business environment, in 2015 it enabled Law No.2 of 2015 related to Commercial Companies. Under this new legislation all UAE companies are required to amend their articles of incorporation until the end of June 2016. The new law now recognizes the statute of holding companies.
Other provisions of the new Commercial Law refer to the procedure of pledging shares and the evaluation of shares in kind. The law also provides for new audit requirements in the case of public joint stock companies. These companies are also required to set new and improved corporate governance regulations.
If you want to know more about the new Commercial Law in Dubai and other legal matters, please contact our attorneys in Dubai. We are able to offer you legal assistance in Dubai and legal representation for litigation procedures in Dubai.
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