What does the Uae’s new CCL No.2 of 2015 mean for existing companies?
The New Commercial Companies Law (NCCL) No.2 introduces a number of changes that impact existing LLC’s in the UAE.
As a company that is already trading here, you have 1 year from the effective date of this law (30th June 2015), to amend your Articles of Association (The AoA) and ensure your compliance with all the new provisions of the law, unless such time is extended under a resolution of the cabinet (Article 374).
Failing to do so could lead to significant fines and indictment for non-compliance, so it is importantyou seek legal advice to prevent this.
Examples of changes applicable to existing LLC’s include the AoA to include the full name, nationality, date of birth and place of residence/domicile for each founder/shareholder (Article 74).
Although there are many changes in the New CCL, other areas remain the same, For example, despite much speculation, the NCCL has retained the same approach as the Old CCL in relation to the foreign ownership restriction: 51%(UAE National)/49%(Foreign) or 100% GCC national (Article 10 of the New CCL).
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