Unified UAE Legislation Database

Commercial companies law amendments

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Federal Decree-Law No. 20 of 2025 published in the Annex to Federal Gazette No. 809 and effective since October 14, 2025, amends certain provisions of Federal Decree-Law No. 32 of 2021 On Commercial Companies.

The new Decree-Law amends both the general provisions on commercial companies (i.e., the articles applicable to companies of all legal types) and articles affecting specific types of companies, such as LLCs, PJSCs and others.

 

Amendments to general provisions

Article 3 — Companies governed by the provisions of the Decree-Law 

The original version of the law applied to all commercial companies in the UAE including foreign companies operating in the UAE or possessing their headquarters, branches and representative offices there.

The new version of the law adds a new group of companies covered by the law - branches or representative offices of companies established in free zones and financial free zones if they operate outside the zone but within the UAE.

This addition is consistent with recently adopted regulations which allow free zone companies to operate on the mainland with the approval of the authorities (refer to the new Dubai decision