Founders setting up in the Emirates should know how the UAE Commercial Companies Law amendments change day-to-day company management. According to Business Dubai, Federal Decree-Law No. 20 of 2025 amended the original 2021 companies law and took effect on 1 January 2026. The changes touch shareholder meetings, share classes, capital contributions and exit terms.
Founder checklist
- What the amendments cover
- Meetings and shareholder rights
- Share classes and capital
- What is still pending
- Practical steps
- UAE company law: FAQs
What the amendments cover
The base law is Federal Decree-Law No. 32 of 2021, which the UAE legislation portal shows as issued on 20 September 2021 and effective 2 January 2022. The portal entry lists one amendment but does not detail it. The specifics below therefore come from a secondary source, Business Dubai, which says Decree-Law No. 20 of 2025 was published on 14 October 2025. We could not check them against the official gazette text, so treat them as a guide and confirm with your licensing authority or lawyer.
Meetings and shareholder rights
Business Dubai reports that shareholders can now request a general assembly with 10% ownership, down from 25%, and that the notice period for a general assembly rose from 15 to 21 days. For founders with investors, a lower threshold means minority holders can force a meeting more easily, so shareholder agreements and board calendars matter more.
Share classes and capital
The same source says onshore LLCs can issue multiple share classes with different rights, that shareholders may contribute assets other than cash if valued by accredited valuers or agreed by partners, and that articles can include drag-along, tag-along and advance succession arrangements. It also says non-profit companies are now expressly recognised.
What is still pending
Two features depend on further rules. Business Dubai says Cabinet implementing regulations for share classes were expected later in 2026, and regulations allowing companies to move between emirates, or between mainland and free zones, while keeping their legal identity were expected around mid-2026. The page was last reviewed in April 2026, so check whether these regulations have since been issued before building a plan around them.
Practical steps
Consider a hypothetical Brazilian founder, Marina, forming a mainland LLC in Dubai with two angel investors. Based on the reported changes, she should check whether her articles allow the exit terms her investors expect, set a calendar for the longer 21-day notice period, and ask her adviser whether share classes are usable yet. Our company formation page explains the options at a high level, and the visa eligibility checker helps with the residency side. This is general information, not legal advice.
UAE company law: FAQs
When did the UAE companies law amendments take effect?
Business Dubai reports 1 January 2026, under Federal Decree-Law No. 20 of 2025.
What is the new threshold to call a shareholder meeting?
Shareholders with 10% ownership can request a general assembly, down from 25%, per Business Dubai.
Can LLCs now issue different share classes?
Reportedly yes, but implementing regulations were expected later in 2026, so confirm with your authority.
Can a company move between a free zone and the mainland?
The amendments reportedly allow it while keeping legal identity, with regulations expected around mid-2026.
Where can I check the official law?
Start with the UAE legislation portal entry for Federal Decree-Law No. 32 of 2021 and the official gazette.
See also: our company formation overview.
