DUBAI 30 May 2017: The deadline for companies in the UAE to comply with the requirements of the new UAE Commercial Companies Law is approaching.
With GCC heading towards value added tax (VAT) and special excise duties from the beginning of 2018, it does not seem likely that there will be another extension for compliance with the new law.
The UAE Commercial Companies Law came into effect in 2015 and introduced a number of changes that apply to businesses in the country.
Article 347 of the law gave companies that were already in existence until June 2016 to amend their Memorandum of Association and Articles of Association. The deadline was later extended for existing companies by one year – which ends in June 2017.
The Dubai Chamber of Commerce and Industry recently hosted a workshop which focused on key features and requirements under the new UAE Commercial Companies Law. Organised in cooperation with Afridi & Angell Legal Consultants, the workshop was attended by Dubai Chamber members, lawyers and legal professionals, general managers, business owners, corporate counsel, investors, and contract administrators.
During the presentation, Charles Laubach, Partner, Afridi & Angell, explained that although existing companies have recently been relieved from the requirement to amend their constitutive documents, some uncertainty still remains. Therefore, he said that it is essential for new and existing companies to understand the key features of the new law and how to comply with the latest requirements.
Presentations during the event provided participants with an overview of the important changes and benefits brought forth by the law, including recognition to concepts and opportunities for innovative structures that might not have been previously possible.
It also reviewed the differences between the previous and new commercial laws, as well as the penalties and consequences for companies that fail to comply.
Jehad Kazim, Director, Legal Services Department, Dubai Chamber, explained that the UAE Commercial Companies Law was designed to enhance the competitiveness of the business community and improve investor confidence, while it also includes the highest international standards.
“The workshops are an integral part of Dubai Chamber’s efforts to raise awareness about regulation and key issues that impact the local business community. The strong interest and participation in these events reflects a maturing market where companies take a pro-active approach to staying informed and compliant with regulatory changes,” said Kazim.
By Rajive Singh