Introduction of the new Regulations for the Companies Limited by Guarantee
A company limited by guarantee is a private company that has no share capital. Still, the liability of a member is limited to such amount as he/she undertakes to contribute to the assets of the company in the event of its being wound up.
Provisions applicable to companies limited by guarantee and the Members’ guarantee/ liability are covered under the new regulations.
Special purpose vehicles (SPV)
Under the new Company Regulations and the Companies Limited by Guarantee Regulations, it is now possible to incorporate a special purpose vehicle (SPV) in the DMCC.
Holding Companies
The updated Licensing Rules permit a company to apply for a holding company license. This additional license category allows companies in the DMCC the flexibility to structure their corporate group in a manner most appropriate for their needs.
Freelance licences
The freelance regime will allow individuals to conduct business from the DMCC independently without the need for an employment contract, sponsorship by an employer, or incorporation of a company.
Updates on Share Capital
The regulations for Currency of share capital, issue of Bonus shares out of share premium, Reduction of capital, issuing redeemable shares, Removal on restriction of share classes, and Variation of class rights has been amended.
Share capital deposits
No longer require share capital to be evidenced by deposit of a sum into a bank account, unless the share capital amount is greater than AED 50,000.
Directors and corporate governance
The minimum age required for a person to be appointed as a director, secretary and/or manager has been reduced from 21 years to 18 years of age.
