Legal Forms of Commercial Companies in the United Arab Emirates

Sarah Abdullah

Legal Researcher at Zayed Al-Shamsi Law Firm and Legal Consultations 

The United Arab Emirates is considered one of the leading investment environments in the region due to its flexible legislation and advanced infrastructure that encourage the establishment of companies and the practice of various types of commercial activities. The legal forms of companies in the UAE are diverse, tailored to meet the needs of investors and entrepreneurs—whether individuals or institutions, locals or foreigners. It is crucial for anyone seeking to enter the UAE market to understand these legal forms, as they determine the company’s responsibilities, scope of activity, capital requirements, and the legal obligations associated with each type.

According to Article (9) of Federal Decree-Law No. (32) of 2021 on Commercial Companies, the recognized legal forms of companies in the UAE are:

1. General Partnership Company
2. Limited Partnership Company
3. Limited Liability Company (LLC)
4. Public Joint Stock Company (PJSC)
5. Private Joint Stock Company (PrJSC)

The law further stipulates that any company that does not take one of the above-mentioned legal forms shall be deemed null and void, and the individuals who entered into a contract in the name of such a company shall be held personally and jointly liable for the obligations arising from such a contract.

Conclusion:
Choosing the appropriate legal form for a company is a critical step toward the success of any business venture in the UAE. It influences the company’s operational framework, the extent of liability, and future growth opportunities. Therefore, every investor must carefully study these legal forms before starting their commercial activity to select the structure that best suits their project’s objectives.