The UAE Ministry of Economy has issued a new Decision No. 109 of 2023, which enshrines the legal concept of a Family Business Register in the UAE. The Decision specifies the rules for registering a family company in the Register, as well as the conditions for updating data and cancelling the records in the Register.
According to the Decision, the Register includes all family companies that are established in accordance with the provisions of Federal Decree Law No. 37 of 2022 concerning the Family Businesses. The monitoring and control of the Register is entrusted to the Commercial Registration Unit of the Ministry.
Once the company is enrolled in the Register, the Cabinet decides on the benefits according to Article 25 of the Decree-Law. The competent authority of the Emirate may also grant any other incentives to family businesses.
A company is subject to registration in the Register under the following conditions:
- The company does not belong to the types of companies that are not subject to the provisions of the Decree Law concerning the Family Businesses.
- The majority of shares in a family company are owned by people belonging to the same family.
- The ...