🇦🇪 Legislation1 Oct 2025
UAE allows multiple share classes in LLCs and private companies
The UAE's Federal Decree-Law No. 20 of 2025, issued on 1 October 2025, amends the Commercial Companies Law (Federal Decree-Law No. 32 of 2021). Limited liability companies and private and public joint stock companies can now have several classes of shares or quotas with different rights, under models approved by Cabinet decision. It also adds statutory drag-along and tag-along rights and a framework for non-profit companies.
Before the amendment, multiple share classes were open only to public joint stock companies, under a Cabinet decision.
What changed
- Share classes: LLCs and private and public joint stock companies can issue several classes of shares or quotas, with different voting, dividend or other rights, following Cabinet-approved models.
- Exits: statutory drag-along and tag-along rights.
- Other: clearer rules on inheriting shares and on some deadlocks, and a framework for non-profit companies.
- Application depends on implementing regulations and on each emirate's registration authority.
Who is affected
Mainland UAE companies, investors and founders. The DIFC and ADGM have their own company laws.