In the UAE, it will be possible to transfer companies between the registries of different emirates while retaining legal personality and to register non-profit companies. This was reported by the news agency WAM.
How the corporate sector in the UAE is being reformed
Comprehensive reforms in the corporate sector of the United Arab Emirates began in the early 2020s.
In 2022 the heads of the UAE Ministry of Economy and the Securities and Commodities Authority announced the most extensive changes in the country's history to company registration, intellectual property, and investment legislation.
Special amendments aimed at improving the business climate in the country were made to more than 40 laws and approved by the President of the UAE - Emir of Abu Dhabi Khalifa bin Zayed Al Nahyan.
The three key regulatory acts of the reform were:
- Federal decree-laws on commercial companies;
- On the commercial register;
- On trademarks.
According to these amendments, it has become possible in the UAE to establish new companies for the purpose of merging with or acquiring other firms. Restrictions on the ownership shares of founders in public offerings were lifted, and restrictions on the nationality of company board members were removed.
The activities of commercial companies were liberalised regarding the introduction of internal regulations, as well as the process of forming public joint-stock companies. In addition, branches of foreign companies operating in the UAE were allowed to convert into local firms.
According to the legislative innovations, the commercial register has been transformed into a “comprehensive economic directory.” To facilitate access to information, special electronic platforms began to be developed.
In 2024, the UAE Ministry of Economy officially announced the launch of the National Economic Register. The goal of this project is to create the largest unified database in the country on all commercial licenses, as well as to unify the procedures for company registration and business operations.
Commenting on the new initiative, Minister of Economy Abdullah bin Touq Al Marri noted that the UAE has taken a course toward sustainable digital development in public administration and is improving the system of administrative services, making it more flexible and competitive.
The platform provides proactive services and accurate, reliable information to a wide segment of society — decision-makers, businessmen, investors, entrepreneurs, research and educational centers, analytical centers, and the media. One of these services is the ability to request data and information on any commercial license in the country and on more than two thousand types of economic activity across the seven emirates, as well as to explore investment opportunities available in various sectors of the national economy.
— the Minister stated.
How UAE Company Legislation Is Changing in 2025
On 9 December 2025, it became known that the UAE government issued a federal decree-law amending the Commercial Companies Law. The purpose of these amendments is to enhance competitiveness in the business environment and to keep pace with global economic changes.
They are also aimed at developing the corporate regulatory framework, providing broader opportunities for investors, and modernising legislation on ownership and financing. According to the authorities, this will increase the UAE’s investment attractiveness.
The decree-law introduced a fundamentally new category — the non-profit company. This type of firm reinvests its net profit to achieve its stated programmatic goals, without distributing it among partners or shareholders. Experts note that this allows the social sector to operate within a flexible and transparent institutional framework.
The decree-law also provides expanded opportunities for structuring company capital through a variety of new classes of shares and stakes. These rights include voting rights, profit distribution, pre-emption, and liquidation priorities, as defined in the company’s charter or internal regulations. Experts describe these changes as a significant step forward in the development of corporate governance and support for private enterprise.
The new regulatory act governs the process of transferring companies between the registries of individual emirates and free economic zones while maintaining their legal personality. The decree-law establishes clear rules and procedures for this process, facilitating the free movement of businesses, expanding the scope of economic activity within the UAE, reducing commercial disputes, and protecting the rights of minority shareholders.
“The introduction of company migration rules, simplified procedures for conversion into joint-stock companies, and private placement options will reduce procedural complexity and transaction costs… Nevertheless, some areas still require clarification through regulatory acts, for example… detailed conditions for issuing multiple classes of shares.”
The latest legislative amendments also establish a number of modern contractual mechanisms for managing shares and securities, including shareholder-involved transactions and compulsory share sale transactions. They regulate the procedures for disposing of assets in the event of a partner’s or shareholder’s death. This positively affects stability and continuity in company management.
The decree-law specifies detailed standards for the valuation of shares in kind and the accreditation of appraisers. Special clear rules have been developed to ensure procedural transparency and protect investors’ rights.
“This decree-law represents a strategic step forward in the UAE’s ongoing efforts to modernise business legislation and create a flexible and reliable legal environment that fosters innovation and investment, while enhancing the competitiveness of the national economy at both regional and global levels.”
- notes WAM agency.
According to The National, last year the United Arab Emirates ranked 10th in the world in terms of foreign direct investment. The country also ranked second globally, after the United States, in the number of newly announced foreign direct investment projects.
To encourage the inflow of foreign capital, in addition to corporate sector reforms, UAE authorities are implementing other measures, such as simplifying the visa regime and introducing incentives for small and medium-sized businesses.
In 2025, the number of commercial licenses issued in sectors related to tourism in the UAE increased fourfold year-on-year.
What is a commercial register?
In our video, we explain what a commercial register is and how you can check your business partner.
If you need to verify your foreign business partner, contact Schmidt & Schmidt.
We provide extracts from commercial registers in more than 100 countries worldwide.
