Guide to the DIFC Companies Law 2018
The Dubai International Financial Centre (DIFC) has made significant changes to the companies’ law regime from November 2018. The new Companies Law, DIFC Law No.5 of 2018, repeals and replaces the previous Companies Law (DIFC Law No.2 of 2009). One of the most important changes is to the classification of companies, which affects existing companies and new companies being established in the DIFC. Other key features include a more comprehensive set of codified directors’ duties, a new merger regime and a new compromise and arrangement procedure, which draw on best practice from other common law jurisdictions.
The DIFC has also enacted new Companies Regulations, an Operating Law (Law No.7 of 2018) and Operating Regulations and Ultimate Beneficial Owner Regulations. Together, these form a new regime for companies doing business in the DIFC.
We discuss some of the key features of the new companies’ law regime in the DIFC in this alert.