Ministry of Economy: Allowing full ownership of companies starting June 1, 2021

The Ministry of Economy announced that the Commercial Companies Law will come into effect from next June 1, allowing investors and entrepreneurs to fully establish and own companies in economic activities.

The UAE government had recently approved the amendment of the Commercial Companies Law, and the abolition of the condition that requires investors and international companies that wish to open a branch within the country to have an agent from among the citizens of the country, with the aim of enhancing the resilience of the national economy and supporting it, and raising the attractiveness of the investment environment in the country to levels A world leader, through openness and flexibility in legislation to provide an economic climate in accordance with the best trends and modern practices in the field of investment, and in line with the country's goals for the next 50 years.

Economy Minister Abdullah bin Touq Al-Marri said: “The application of amendments to the Commercial Companies Law, starting next June, is a new step that reflects the importance that the UAE government attaches to supporting the economy in its various sectors and enhancing its readiness for the future, especially as the law comes within the framework of a comprehensive vision for the state to enhance its position as a global destination for investments.” .

He added, "The law comes into effect at a time when we are witnessing many changes in the global economy map, which necessitates providing all means of support to companies based in the UAE, in a way that increases their competitiveness and their ability to easily access global markets."

He also said: "In the UAE, we realize the importance of encouraging investors and entrepreneurs and their pivotal role in achieving economic development, and we are keen to provide an integrated and flexible investment environment that enables them to implement vital projects that support the national economy."

The Companies Law supports facilitating the establishment and conduct of business activities in the UAE, increasing the attraction of foreign direct investment to the various vital sectors in the country, as well as developing and establishing new quality projects, increasing the diversity of the economic base and raising its productivity, supporting innovation, research and development capabilities in the country, and attracting talent and competencies.

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