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DUBAI CREATIVE CLUSTERS AUTHORITY ISSUES NEW REGULATIONS FOR PRIVATE COMPANIES

DUBAI CREATIVE CLUSTERS AUTHORITY ISSUES NEW REGULATIONS FOR PRIVATE COMPANIES

13 Feb 2017
DUBAI CREATIVE CLUSTERS AUTHORITY ISSUES NEW REGULATIONS FOR PRIVATE COMPANIES

DUBAI CREATIVE CLUSTERS AUTHORITY ISSUES NEW REGULATIONS FOR PRIVATE COMPANIES

The Dubai Creative Clusters Authority (DCCA) (previously known as TECOM) has issued the Dubai Creative Clusters Private Companies Regulations (“the DCC Regulations”) which came into force on 1st February 2017.

The DCC Regulations repeal and replace the Dubai Technology and Media Free Zone Private Companies regulations in its entirety, in addition to many Decisions as well.

The DCC Regulations specifically require all companies and branches incorporated in the DCCA to adjust their legal status and adopt the new documentation- primarily the Articles of Association, within the next 12 months.

Some of the key features of the DCC Regulations are:

  • A new Standard Articles of Association (AOA) has been introduced which combines the previously issued Memorandum of Association and Articles of Association into one single document. All limited liability companies are required to adopt the new AOA within the next 12 months.
  • Members of the company can request the Registrar to divide the shares into different classes. Shares may also be issued at a premium
  • A company may purchase its own shares
  • A member of a company may pledge all or some of his shares. A new Security Register sets out transparent and comprehensive details on the share pledge process, extent of the pledge, registration, transfer, enforcement and release of pledge
  • Foreign companies can now redomicile or transfer its business jurisdiction from its current country to the DCCA without having to set up a new company or branch. This Continuation of Incorporation process has been clarified in detail in the DCCA Regulations.

Even as we wait for more details about the process for companies to modify their status, it is important to state that the DCCA Regulations are clearly based on international best practices and has been drafted to address markets needs and enable companies to operate smoothly

Being one of the top law firms in Dubai, James Berry & Associates have qualified and experienced lawyers in Dubai who can assist you with the interpretation of the Dubai Creative Clusters Private Companies Regulations

To know more contact Deepa (senior legal consultant) - deepa@jamesberrylaw.ae

This is a general guide on the subject matter and should not be construed as specific legal advice.

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