The UAE has announced significant amendments to its Commercial Companies Law through Federal Decree-Law No. 20 of 2025, reinforcing the country’s commitment to maintaining a strong, flexible, and investor-friendly business environment.
The updated law enhances shareholder protection by formally recognising mechanisms such as drag-along and tag-along rights, offering greater clarity for ownership transfers and exit planning. Companies are also granted increased flexibility in capital structuring, including the ability to issue multiple classes of shares with varying rights.
In addition, the amendments provide clearer regulatory alignment between mainland and free zone companies, reducing compliance ambiguity for businesses operating across multiple UAE jurisdictions. A major highlight of the reform is the introduction of seamless company registration transfers within the UAE, allowing businesses to move between mainland and free zones without losing their legal identity.
The revised law also modernises corporate governance frameworks and introduces provisions for non-profit company structures, reflecting global best practices.
These amendments introduce significant changes to the ownership, management, and restructuring of businesses in the UAE. They affect areas such as shareholder rights, share structures, and the ability to move companies between the mainland and free zones.
To understand what these changes mean in practical terms and how they may affect company formation and ongoing business operations, read our detailed blog UAE Commercial Companies Law Amendments: Business Impact.
The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.