The 10 Elements Required To Prevent Company’s Nullification In The UAE

The new Commercial Companies Law in UAE, Federal Law No. 2 of 2015, lists five different forms according to which a company may be set up. However, there are different circumstances in which any company, apparently compliant to the related UAE laws and regulations, may still be subject to nullification. Basic and necessary elements of establishment must be present in order cast away the risk of having a company nullified.

Even though the new Commercial Companies Law in UAE, Federal Law No. 2 of 2015 lists five different forms of commercial companies, there are different circumstances in which any commercial company, apparently compliant to the related UAE laws and regulations, may still be subject to nullification.

These circumstances relate to the essential presence of “substantive elements” on one hand, and “formal requirements” on the other, within the Articles of Association. Shareholders, lawyers and in-house counsels should take into consideration all the required and necessary elements to be included within an AOA, when setting up the company, at the risk of nullification.

 

 

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