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Dubai’s Commercial Company Laws Amendment | BSB Legal


Dubai, the dynamic heart of the United Arab Emirates (UAE), is no stranger to change. With each passing year, it strives to be at the forefront of innovation and progress. In this spirit, Dubai has recently undertaken significant amendments to its Commercial Company Laws, a move that promises to further enhance the city’s reputation as a global business hub. In this article, we will explore these recent changes, their implications, and how they are shaping Dubai’s business landscape.

Evolution of Dubai’s Commercial Company Laws

Enhancing Business Flexibility: One of the primary goals of the amendments is to increase the flexibility of doing business in Dubai. Companies can now choose from various legal structures, including sole proprietorships, partnerships, and limited liability companies (LLCs), to better suit their needs.

Foreign Ownership: The amendments also mark a significant shift in foreign ownership regulations. Previously, a majority of a company’s shares had to be held by UAE nationals. The new laws allow for increased foreign ownership in specific sectors, fostering an even more attractive investment climate.

Key Changes and Implications

100% Foreign Ownership: Certain business activities in Dubai are now open to 100% foreign ownership, marking a substantial departure from the previous rules that mandated local partnerships. This change is set to boost foreign investment across various sectors, including manufacturing, agriculture, and renewable energy.

Simplified Business Setup: The process of setting up a business in Dubai has been streamlined and simplified. Reduced bureaucratic hurdles mean quicker business registration and the ability to start operations sooner, attracting entrepreneurs and investors.

Enhanced Corporate Governance: The amendments emphasize corporate governance, requiring companies to adopt more transparent and accountable practices. This not only protects investors but also contributes to Dubai’s reputation as a reliable business destination.

Bankruptcy Laws: Dubai has also introduced modern bankruptcy laws that provide a clear framework for distressed companies. This enables businesses to restructure and recover, promoting a more resilient business environment.

Investor-Friendly Environment

Dubai’s Commercial Company Laws amendments are designed to bolster the emirate’s reputation as a haven for investors. These changes create a more investor-friendly environment with:

Greater Legal Protection: Investors can expect stronger legal protections for their investments, ensuring their rights are safeguarded.

Risk Mitigation: The introduction of bankruptcy laws allows investors to take measured risks, knowing that there are mechanisms in place to handle financial difficulties.

Market Diversification: With more sectors open to foreign ownership, investors have a broader range of opportunities, reducing dependency on specific industries.


Dubai’s recent amendments to Commercial Company Laws signal a pivotal shift in the legal landscape. BSB Legal, as a prominent legal consultant and team of experienced lawyers in Dubai, is at the forefront of navigating these changes. Our commitment to staying abreast of evolving laws positions us as a trusted ally for businesses. Whether you’re seeking expert legal advice or comprehensive legal services, BSB Legal is your reliable partner. Embrace the future with confidence, knowing that our dedicated team is equipped to guide you through the intricacies of Dubai’s commercial laws. Trust BSB Legal for unparalleled legal expertise. As Dubai continues to evolve, so too do its laws and regulations. The recent amendments to the Commercial Company Laws reflect the emirate’s unwavering commitment to progress and innovation. They encourage investment, promote transparency, and enhance corporate governance, setting a strong foundation for businesses to thrive.