UAE has now become one of the superpowers with a business starting up every other day. There are several things to consider while starting a business in the UAE, and the most important factor would be your comprehension of the commercial laws of the country.
Commercial Laws of UAE is the body of law that governs commercial and business transactions within the Emirates. The UAE provides a supportive and efficient legal structure for businesses that are on par with international standards. It is now working on upgrading various legislations specifically for those pertaining the economic infrastructure and investment in the country.
If you are thinking of company formation in UAE, you need to be aware of the regulations related to the economy, investment and trade, which are included in the commercial law otherwise known as the business law.
Foreign Investment Law
With this law, you can have a major part of your regulatory and administrative obstacles removed through which more foreign and Arab direct investment can be attracted. This law offers several advantages, tax exemptions and much more; it also creates a unified regulatory framework for foreign investments.
This law was introduced to put a stop to all corrupt practices that adversely affected its efficiency. The recommendation of the World Trade Organization (WTO) in the last review of the UAE’s trade policy paved the way for this law to be introduced. This law offers a useful business environment that promotes efficiency, competitiveness, consumer welfare and development in the country.
Law on certification
Considering that there are several fake documents, certificates and data that are being circulated these days, this law allows the Ministry of Economy to penalise and fine them. It aims at re-organizing legislations related to the rules of the certificate of origin, based on the progress achieved in the area.
New Federal Law on Commercial Companies
This is to ensure the protection of shareholder rights by making it mandatory for all companies to develop a standard framework for corporate governance.
New Law of Commercial Arbitration
The international case disputes will be settled by the Abu Dhabi Federal Court of Appeal.
The law comes into play in case of commercial disputes. In the event of a commercial dispute, the case will be heard by civil courts in the respective emirates.
Basic Laws Involved in Running a Business in Dubai
Apart from the laws mentioned above, there are some fundamental laws that have to be followed while running a business in Dubai. There are three laws such as Commercial licenses that cover all kinds of trading activity, Professional licenses that cover services, professions artisans and craftsmen, and Industrial licenses that are for establishing industrial or manufacturing activity.
To acquire more information on the laws involved to start a business, it would be best to get in touch with an expert team of company formation consultants who have the knowledge and experience to help you set your business in the UAE.