New Companies Regulations 2020 to provide great flexibility for Companies and ease doing businesses in DMCC

The Dubai Multi Commodities Centre (“DMCC”) has issued New Companies Regulation 2020 (“New Regulation”) which came into effect on 2nd January 2020, aiming to provide flexibility and attract more companies to be established in DMCC.

The New Regulation has introduced provisions such as:
1. The minimum share capital requirement to establish a company has been removed except however DMCC Registrar (“Registrar”) may specify a minimum amount based on the business activity
2. The Companies registered under DMCC are required to adopt the latest standard Articles of Association in order to align with the New Regulation
3. Allows amendment in the Articles of Association to reflect shareholder requirements
4. Providing the option to have different classes of shares
5. Permits re-domiciliation of companies to and from the DMCC
6. Introduction of Dormancy where a company can voluntarily suspend its commercial licence to change its status as a dormant company
7. New provisions on winding-up and insolvency of DMCC companies however Federal Law on Bankruptcy Law 2016 shall also be applicable
8. Provides comprehensive provisions for regulating new and existing branches and,
9. Prepare and maintain company registers
10. Introduction of “Officer Rules” detailing the roles and responsibilities for directors, managers and company secretary
11. Appointment of Company Secretary if the Company has not appointed
12. Must prepare annual audited accounts in accordance with International Accounting Standards
13. Establish and implement appropriate systems and internal procedures to enable corporate governance compliance

How can MBG Help

MBG can assist you with the following:
1. Amendment of Articles of Association to comply with the New Regulations
2. Advising on the role and responsibilities of the officer of the Company
3. Appointment of Company Secretary (if required)
4. Preparation and maintenance of company registers
5. Advising on change of status to dormancy (if required)
6. Assisting in setting up or changing the domicile of a company in DMCC


Sakina Dickenwala
Associate Director – Legal Services

Company Secretary, Lawyer, and Commerce Graduate having 10 years of experience globally.
Areas of Specialization:
– Business advisory
– Regulatory Compliances and Governance
– International Commercial Contracts
– Commercial Law and Business Establishment
– Liquidation/Winding-up
– Employment Laws
– Land Department Laws

 

Tag: Accounting, Announcement, Business, Corporate governance, Dubai, Uae