This is an update to the attached Tax alert sent on June 9, 2016 with regard to the grace period of implementing the revised UAE Commercial Companies Law (CCL) that was coming to an end in June. The UAE Cabinet recently approved a proposal by Sultan bin Saeed Al Mansouri, Minister of Economy, to extend the period for existing companies in the UAE to comply with the law to one year. The adjustment of positions now starts from July 1, 2016 and ends on 30 June, 2017.
The extension came after Al Mansouri received several requests from the Securities and Commodities Authority, the Departments of Economic Development across all the emirates, and a number of existing companies in the UAE to have more time to adjust to the new law given the substantial time needed to complete the statute amendments and obtain government approvals and the effort required for holding general assemblies for some companies.
During this period companies covered by the new Commercial Companies Law are requested to make the necessary adjustments in accordance with the law’s provisions.
Notice:
In case of Late Adjustment companies will be fined Dh2,000 per day of delay calculated from the day following the expiry date of the applicable period for such purpose as per article 357.
Should existing companies fail to adjust their positions within the extended grace period, the company shall be deemed as dissolved in accordance with the provisions of this Law.
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