Update to DMCC Company Regulations – DMCC Companies must update their Articles of Association
On 2nd January 2020 Dubai Multi Commodities Centre (DMCC) Freezone Authority brought in new Company Regulations 2020 (“CR 2020”).
Pursuant to Reg.184.7 of CR 2020, any Company registered and Licenced before the effectivity of CR 2020 must within twenty-four (24) months from the date of the CR 2020 must amend its Articles of Association (AOA) to ensure the provisions of its AOA are in line with CR 2020.
All companies in DMCC therefore have until 2nd January 2022 to ensure that have updated their AOA, and to either adopt the updated Standard Articles (model AOA for a Company prescribed by DMCC) or adopt Non-standard Articles (be-spoke AOA).
The DMCC company may adopt new non-standard Articles by Special Resolution. The adoption of new Articles takes effect on their registration by the Registrar.
A Company’s Licence must be valid at the time of submission of the application and until process is completed. The application will be put on hold if the Licence expires during the process until Licence is renewed. There should not be any active sanction against the Company.
The new Articles must be deposited with the Registrar within 15 Business Days of the Resolution to adopt new Articles or such other date approved by the Registrar.
Any rights and obligations of the Shareholders and/or the Company, which have arisen under the Articles prior to the adoption of the new Articles, will not be affected unless the new Articles specifically provide otherwise
Please find DMCC guidance notes on the requirements to update AOA here
Full DMCC Company Regulations 2020 (CR 2020) can be found here
Next steps and how can PRO Partner Group help?
If you have already updated your DMCC Company AOA in line with CR 2020 then please ignore this update.
If you have not yet updated your AOA, or you are unsure of the requirements then we can review your current AOA and undertake the redrafting of the relevant amendments and assist fully in reviewing, notarising and updating of the AOA to fall in line with the updates to the DMCC Regulations 2020.
For further guidance in relation to the AOA amendments please contact your PRO Partner Group relationship manager if you are an existing client.
If you are not yet a PRO Partner Group client and if you need assistance and guidance in relation to amendments to your AOA or any other related company set up, restructuring, local partner or PRO support matter then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at info@propartnergroup.com, or complete the contact form below we will be delighted to assist you.
