The UAE has introduced major amendments to its Commercial Companies Law via Federal Decree-Law No. 20 of 2025, effective from early 2026, aimed at enhancing corporate flexibility and aligning with global standards.
Key changes include allowing LLCs and private JSCs to issue multiple share classes with varying rights on voting, dividends, and liquidation; embedding drag-along and tag-along rights directly in company documents for smoother exits; and enabling company migration between mainland and free zones without liquidation. These reforms also clarify capital requirements, permitting cash, in-kind, or mixed payments fully at incorporation, while promoting stronger investor protections and governance tools.
For UAE businesses, these updates signal a maturing onshore framework that rivals international hubs, facilitating complex equity structures, easier restructurings, and investor-friendly mechanisms—ideal for attracting foreign capital and scaling operations.
What this means:
UAE entrepreneurs can now structure companies with tailored shares and seamless migrations, reducing costs on expansions or sales. Review your Articles of Association now to leverage these for funding rounds or zone shifts.