Definition
| Term | Pronunciation | Category |
|---|---|---|
| Commercial Companies Law (CCL) | N/A | UAE Business Law |
The Commercial Companies Law (CCL) is a federal law in the United Arab Emirates (UAE) that provides the legal framework for the establishment, operation, and dissolution of companies.
Explanation
The Commercial Companies Law (CCL), also known as Federal Law No. 2 of 2015, was replaced by Federal Law No. 32 of 2021. This law is a significant part of the UAE’s legislative framework and is crucial for both local and foreign investors. It sets out the rules and regulations for various types of companies, including limited liability companies, joint-stock companies, and partnerships.
Additional Information
The CCL was updated in 2021 as part of a series of legislative reforms undertaken by the UAE Government to encourage foreign investments into the UAE. The new CCL aims to further ease the restrictions around UAE companies, and foreign ownership restrictions have been virtually removed.
Best Practices
- Always consult with a legal expert or a business setup consultant before starting a business in the UAE to ensure compliance with the CCL.
- Keep up-to-date with any changes or amendments to the CCL as the UAE government frequently updates its laws.
Related Terms
- Federal Law No. 2 of 2015
- Federal Law No. 32 of 2021
- Limited Liability Company (LLC)
- Joint-Stock Company
External References
Conclusion
The Commercial Companies Law (CCL) is a fundamental piece of legislation in the UAE that governs the establishment, operation, and dissolution of companies. Understanding this law is crucial for anyone looking to do business in the UAE.
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