The United Arab Emirates has amended its Commercial Companies Law through Federal Decree-Law No. 20 of 2025, introducing changes across 15 articles and adding provisions for company registration transfers.
The Ministry of Economy and Tourism held a briefing to review the amendments to Federal Decree-Law No. 32 of 2021. Abdulla bin Touq Al Marri, Minister of Economy and Tourism, attended alongside Abdullah Al Saleh, Undersecretary of the Ministry of Economy and Tourism, Waleed Al Awadhi, CEO of the Securities and Commodities Authority, Saif Ahmed Al Suwaidi, Director-General of the Ajman Department of Economic Development, and Counselor Barkan Khalifa Al Khalifa, Executive Director of the Business Governance Sector in Abu Dhabi.
Bin Touq said the amendments align with the We the UAE 2031 vision, which aims to position the UAE as the world’s leader in developing legislation for new economy sectors by the next decade.
New UAE law allows company registration transfers across Emirates, Free Zones and Financial Free Zones
“The new amendments to the Commercial Companies law marks a pivotal milestone that underscores the UAE’s commitment to enhancing the flexibility and sustainability of companies and supporting their ability to keep pace with future trends,” he said at the briefing, according to a report by the Emirates News Agency (WAM).
The law introduces measures at national and regional levels. It provides a framework that supports company growth and sustainability, facilitates access to financing and investment, and strengthens the ability to continue operations and expand across free zones and financial free zones.
The amendments provide flexibility in ownership structures and sale and exit processes, while enhancing governance and safeguarding shareholders’ rights.
“The amendments grant multiple quotas and share classes in limited liability companies (LLCs) and public and private joint stock companies as a legal right, compared to the previous system where this right was limited to public joint stock companies through a Cabinet decision,” Bin Touq said.
He added: “The UAE is among the first countries in the Middle East to allow multiple quotas classes for LLCs, while many countries restrict this to joint stock companies, particularly public joint stock companies. It enhances flexibility in ownership structures and better regulates the relationship among shareholders.”
The law allows the transfer of a company’s registration in the commercial register between emirates, free zones and financial free zones, while maintaining the company’s legal personality, contracts and obligations, without re-establishment or liquidation. It permits the conversion of companies between different legal forms, including cooperatives.
The Minister said the amendments will enhance alignment and integration between local legislation and the laws of free zones and financial free zones related to establishing, operating and transferring companies between different regimes, and strengthen integration among licensing authorities in the UAE.
The changes will reduce compliance and operating costs for companies, ensure business continuity, and support their access to markets, financing and investments. The total number of company registrations and licences in the UAE is expected to increase by 10 to 15 percent within the first year of implementing the amendments.
The UAE has attracted around 760,000 companies since the issuance of the Commercial Companies Law in September 2021 through the end of 2025. This brings the total number of companies in the country to more than 1.4 million, marking a 118.7 percent growth compared to the end of the first half of 2021.
About 250,000 companies were established in 2025 alone, while SMEs owned by UAE nationals grew by 63 percent over the past five years.
The Minister said 2025 witnessed the registration of 37,794 national and international trademarks. The number of registered trademarks increased by 74 percent over four years. In intellectual property, 3,595 works were registered in 2025, achieving growth of 124 percent over four years.
Bin Touq said the UAE tourism sector’s contribution to GDP rose to 15 percent last year, compared to six percent in 2021, reaching a total value of AED291 billion. This reflects growth of nearly 216 percent over four years.
The UAE economy is expected to grow by 5 percent in 2025, driven by the expansion of non-oil sectors, whose contribution reached 77.5 percent by the end of H1 2025.
“This growth is supported by the UAE’s flexible economic policies and legislation, which enable business growth and expansion across new economy sectors,” he said.
