Family business is every company established in accordance with the provisions of the Federal Decree-Law No. 32 of 2021 “On Commercial Companies”. In the family business company, most of the shares or stakes are owned by people belonging to a single family.
Federal Decree Law No. 37 of 2022 concerning the Family Businesses came into effect in January 2023. The Law aims at creating an attractive environment for family business development. It covers all the Emirates and applies to family businesses that operate in the UAE and are registered in the unified Register of Family Businesses.
An application for family business registration must be submitted to the licensing authority that issued the economic license to the company. After that, the Ministry of Economy conducts an inspection and enlists the applicant in the Registry.
Following the registration of the company, the Cabinet of Ministers decides on the benefits and incentives according to Article 25 of Decree Law No. 37 of 2022 concerning the Family Businesses. A government authority of a certain Emirate may also grant benefits and incentives t...