UAE Company Law 2025: Key Changes for Founders and Investors

The UAE has introduced Federal Decree-Law No. 20 of 2025, bringing significant amendments to the Commercial Companies Law aimed at enhancing corporate flexibility, improving governance, and aligning local practices with international standards. These changes are designed to create a more investor-friendly and founder-focused business environment, enabling companies to structure ownership more efficiently, facilitate smoother exits, and expand seamlessly across Emirates and free zones. For startups, family businesses, and multinational investors, this update represents a major step toward modernizing the UAE’s corporate landscape and supporting sustainable growth.

What Changed & Why It Matters

1️⃣ Multiple Share Classes for LLCs
LLCs can issue shares with different voting, dividend, and liquidation rights.
Implication: Enables employee share vesting without voting control, preferred investor rights, and cleaner family & startup ownership structures.

2️⃣ Drag-along & Tag-along Rights Codified
Exit and transfer rights can be embedded in MOA/AOA.
Implication: Faster exits, stronger minority protection, and reduced reliance on complex side agreements.

3️⃣ Company Migration Made Statutory
Seamless migration between Emirates, mainland, and free zones without losing legal identity.
Implication: Easier restructuring, regulatory optimization, and smoother scaling as businesses evolve.

4️⃣ Free Zone Companies Operating Outside the Zone
Mainland activities must follow CCL; free zone companies confirmed as UAE nationals.
Implication: Higher operational flexibility, fewer regulatory ambiguities, and smoother contracting for businesses operating both in and outside free zones.

Why Invest in the UAE?

The UAE is one of the most attractive investment destinations globally, offering a strategic location, tax-friendly policies, and strong investor protections. Key benefits include:

• No personal income tax and competitive corporate tax rates.
• Access to international markets through world-class logistics, ports, and connectivity.
• Business-friendly regulations with modern corporate governance standards.
• Diverse, highly skilled talent pool, supported by government initiatives and visa programs.
• Robust infrastructure across mainland and free zones, facilitating local and global operations.
• Government-backed incentives for high-growth sectors like technology, healthcare, education, renewable energy, and more.

These advantages make the UAE a strategic hub for establishing, growing, and scaling businesses, while benefiting from a stable and dynamic economic environment.

How Bizzmosis Can Help

At Bizzmosis, we help businesses navigate these changes, ensuring compliance while leveraging opportunities to structure and grow your company effectively. Whether you are a founder, investor, or multinational looking to enter or expand in the UAE, we provide tailored guidance on licensing, corporate structuring, and regulatory compliance.

💡 Ready to take advantage of the new UAE Company Law or explore investment opportunities? Let’s talk!
📞 +971 52 979 8169 | 📧 hello@bizzmosis.com