Procedures for Registering Foreign Companies under the UAE Companies Law

Amanah Al-Shami

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

Most countries around the world strive to encourage investment across various economic sectors in order to achieve the desired economic growth and improve the living standards of their societies. In this context, facilitating the smooth and easy operation of foreign companies within a country is considered one of the cornerstones of a successful investment policy. Commercial company laws serve as a reflection of a country’s will to regulate economic activity and ensure a balance between openness to foreign investment and the protection of national sovereignty. A company, although a legal entity, cannot obtain its legitimate legal existence without undergoing precise registration procedures.

In the United Arab Emirates, a country witnessing significant economic and legislative development recognized globally for keeping pace with modern standards and requirements, the UAE legislator has established clear and distinguished legal provisions that outline the procedures for registering foreign companies in accordance with international best practices, thereby creating an attractive investment environment.

Article (337) of the UAE Commercial Companies Law defines the procedures for registering foreign companies. It stipulates that a foreign company may not conduct its business in the UAE unless it is registered in the foreign companies register at the Ministry of Economy. The foreign company must attach to its registration application the documents specified by the Ministry.

It is also worth noting that in the event of the closure of a branch of a foreign company, the Ministry is required to remove the name of that branch or office from the foreign companies register.

Thus, it is clear that the UAE legislator has sought, through the mentioned procedures for the registration of foreign companies, to simplify the process in order to encourage foreign companies to invest in the UAE. This has significantly contributed to the flourishing of the investment climate in the country and to the acceleration of economic growth.