DUBAI MULTI COMMODITIES CENTRE ISSUES NEW REGULATIONS FOR COMPANIES

24 Feb 2020

DUBAI MULTI COMMODITIES CENTRE ISSUES NEW REGULATIONS FOR COMPANIES

These Regulations repeal and replace the previous company regulations in its entirety. 

• Articles of Association (“AOA”):  Companies operating in the DMCC may adopt the Standard AOA as prescribed by the DMCC Authority.  If the Standard AOA is not adopted by a company, it may adopt its own Articles provided that it submits to the Registrar a legal opinion along with the adopted AOA confirming that the AOA does not contain provisions which are contrary or inconsistent with the DMCCA Regulations. 

• Shares: The mandatory share capital requirement of AED 50,000 has been relaxed. Instead the Regulations state that the DMCC Registrar may specify a minimum amount of share capital for companies. A Company may also issue different types or classes of shares, provided that the rights of each type or class of shares are stipulated in the AOA.

• Company office holders: The DMCCA Regulations provides clear information on the roles and responsibilities for all the key office holders in a company. This will indeed help in maintaining high corporate governance standards. 

• Accounts: Companies are required to prepare their accounts in accordance with International Financial Reporting Standards. Each Company must file a copy of the accounts and the auditor's report with the Registrar within five Business Days of the relevant General Meeting. The Auditor appointed by the company should be registered with the DMCC Authority as an approved auditor.

• Voluntary Suspension of License of a company: A company may, following an ordinary resolution, request the Registrar to suspend its license for a period of 12 months or longer (as approved by the Registrar). It is also expected that the DMCC Authority will be issuing additional rules in respect of such dormant companies which have voluntarily suspended their license. 

• Transferring of companies to and from the DMCC Free Zone:  Simplified regulations with regard to the transferring of companies into the DMCC Free Zone and from the DMCC Free Zone have been introduced. A non-DMCC company continues to have all the property, rights and privileges and is subject to all the liabilities and debts that it had before the continuation once it is registered in the DMCC under the DMCCA Regulations.