Dubai’s New Law to Regulate a Family Owned Business
Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai issued a new law to regulate family-owned businesses in Dubai.
Due to the astounding infrastructure, geologically favorable circumstances, and gifted human resources, organizing a business here in Dubai is one of the best decisions to consider. Dubai is known to be one of the fastest-growing economy that could help you with your business to grow as well. Be that as it may, much the same as some other places, maintaining a business here in Dubai is not as simple as it appears. There are a lot of things to be considered in maintaining a business in Dubai.
Does your family have a business here in Dubai? Or, on the other hand, is your family intending to begin a business here in Dubai?? Here are the things that you must need to consider in running your family-owned business in the UAE.
Family Businesses in Dubai
DUBAI - Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai issued a new law to regulate family-owned business. With a clear legal structure for family ownership, the law assists with securing the family’s wealth, and enhance the family business’ contribution to economic and social development.
In order for the family ownership contract to become legally binding, the following should be strictly monitored: (1) All parties of contract must be members of the same family and should have a single common interest; (2) The share of each member should be clearly stated in the contract; (3) The parties of the contract should own all the legal rights of the monies and assets that are under the domain of contract.
In addition to that, this law additionally directs the articles of the family ownership contract, the business’ structure and management, the formation of the board, the authorities, and obligations appointed to the board and the executives just as the administration's capacity and constraint
The recently issued Law No. (9) 2020, states that the validity of a family contract can extend up to 15 years and it can be renewed for a similar term if all the concerned parties consented to do as such.
Also, it is clearly mandated that the contract must be appropriately authenticated by the notary public as per the rules and regulations specified in Law No. 4 of 2013 regarding Notaries Public in the Emirate of Dubai.
The law characterizes the duties and specialists of government substances as respects to encourage the development of family-owned businesses
Be that as it may, this law is alternatively applicable just to existing and new family ownership including equity securities and proprietorship. Family ownership in public joint-stock companies, movable and immovable properties are not included from this law.
Company Formation in Dubai
In the event that you are thinking of doing a business setup in the UAE, having a business setup consultant is a good way to start your business. Do not worry, for AMCA is here to work for you. We do offer a company formation in Dubai and the rest of the UAE. You can rely on our expertise and experience to take care of the company’s technical and tedious task which requires a lot of documentation and clearances. We will do the paper works, so that, you can focus on innovation & improving your product.
AMCA offers the following: