UAE’s new Commercial Companies Law (CCL) was announced in July 2015 as Federal Law No. 2 (2015) on Commercial Companies. The CCL has replaced the old Federal Law No. 8 (1984) about Commercial Companies.

The New UAE CCL has brought in several new changes to the previous legislation.

Here are the new laws applied to LLCs:

Sole Shareholder

A corporate entity or an individual can be the only shareholder of a Limited Liability Company. The previous law had a minimum requirement of two shareholders for LLC company formation in Dubai, UAE.

Shareholder Information

The Shareholders’ date of birth should be enlisted along with other details in the articles. The shareholders are also required to disclose their mobile numbers to the Department of Economic Development of Dubai. It was not a requirement in the former law for Limited Liability Companies.

Accounting

LLCs will now have to adhere to the International Accounting Standards. The previous CCL had permitted to use any standard in the past.

Share Pledges

Shareholders in Limited Liability Companies are allowed to pledge their shares. The commitments must be made by the establishment’s memorandum and articles of association, and be notarized.

Managers / Directors

It is now possible for Limited Liability Companies to assign more than five Managers / Directors. They should also modify the Articles according to the increase in governance positions.