The UAE has introduced sweeping amendments to its Commercial Companies Law in a move designed to strengthen corporate governance, expand ownership options, and make it easier for businesses to operate and grow across the country.
Officials from the Ministry of Economy and Tourism outlined the changes during a media briefing held this week.
The updates are contained in Federal Decree-Law No. 20 of 2025, which amends certain provisions of Federal Decree-Law No. 32 of 2021. The revisions cover 15 articles and include a new provision that legitimises the transfer of a company’s registration in the commercial register with relevant authorities.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the amendments reflect the UAE’s long-term vision to build a pioneering business environment aligned with global best practices. He described the changes as a pivotal milestone that enhances the sustainability and competitiveness of companies of all sizes.
Key measures grant multiple quotas and share classes as a legal right in limited liability companies and in public and private joint stock firms. Previously, this right applied only to public joint stock companies through a Cabinet decision. The UAE is among the first countries in the Middle East to allow such structures for LLCs.
The law also simplifies procedures by permitting companies to transfer their registration between emirates, free zones, and financial free zones while retaining their original legal personality, contracts, and obligations. Conversions between different legal forms, including cooperatives, are now allowed.
The ministry expects the amendments to reduce compliance costs and improve access to financing and investment opportunities. Bin Touq projected that company registrations and licences will rise by 10 to 15 percent in the first year of implementation.
He added that the national economy is set for solid growth, supported by the expanding non-oil and tourism sectors.
News Source: Emirates News Agency
