Company Law

Company Laws in UAE governs the norms and rules with regard to starting a business, incorporation of Limited Liability Company or any other form of Company, it regulates all matters, from the birth of companies till its dissolution/liquidation.

The major enactment in the field of Company law is:

Commercial Companies Law, Federal Law No. 4 of 1984

The UAE has a new Commercial Companies Law (Federal Law No. 2 of 2015), enacted on 1 April 2015, which came into force on 1 July 2015. This law replaces Federal Law No. 4 of 1984

This Act prescribes the law with regard to Companies in UAE, its incorporation, mode of function, the shareholder requirement etc all are specified in this Act.

In law, a company is considered as separate legal entity with a separate existence than the individuals who own or run the company’s activities.

 

Labor Law

Labour matters in the UAE are governed by Federal Law No. 8 of 1980 Regulating Labour Relations as amended by Federal Laws No. 24 of 1981, No.15 of 1985 and No.12 of 1986 (the “Law”). There are special labour related regulations applicable for the free zones in the UAE. From January 1, 2016, the UAE will implement sweeping reforms to the existing Labour Law, plugging loopholes that will now make employees even more content and secure in their workplace. The primary changes to be enforced next year, pertain to employment contracts for workers hired from abroad, termination of job contracts, and issuance of new labour permits to resident workers. As per new regulations, any offer letter made to a foreign worker will become legally binding once accepted and signed by both parties.

 

Real Estate Law

Real estate law is that branch of law which deals with all the transactions governing a property. The real estate transactions might seem to be simple and straight forward but then that is not case. These legal documents with regard to all the real estate transactions have to be verified in detail. Prior to finalizing any sale it is important to verify all the back documents of the property so that the manner in which the property has devolved upon the current seller can be identified. The tax receipts and other related documents have to be checked and analyzed properly. It must also be verified if there are any dues on the property.

With real estate prices being a hot issue in Dubai, new types of crimes are being witnessed and property crimes are resulting from the failure of one of the parties to complete its commitment based on the contract signed by both parties – developer and investor (owner) or two developers.

Dubai Government has designed and implemented few Dubai property laws, cited below, for real estate buyers, lessors and investors across the world. These rules and regulation address much legal issue related to selling, buying and owing Dubai property.

Law No.(7) of 2013 Concerning the Land Department, Decree No.(43) of 2013 Determining rent increase for Real Property in the Emirates of Dubai, Decree No.(26) of 2013 Concerning the rent dispute settlement centre in the Emirate of Dubai, Executive Council Resolution No.(30) of 2013 Approving fee for the Land Department, Decree No.(4) of 2010 Regulating the grant of title to allotted industrial and commercial Land in   the Emirate of Dubai, Executive Council Resolution No (6) of 2010 Approving the                                                                                                                                                Implementing Bylaw of Law No.(13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai, Decree No.(56) of 2009 Establishing a Special Tribunal for the Settlement of Cheque Disputes Relating to Real Estate Transactions, Law No.(9) of 2009 Amending Law No.(13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai, Law No.(33) of 2008 Amending Law No.(26) of 2007 Regulating the Relation between Land lords and Tenants in the Emirate of Dubai, Law No.(13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai, Law No.(26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai Law No (16) of 2007 Establishing the Real Estate Regulatory Agency, Law No.(8) of 2007 Concerning Escrow Accounts for real estate development in the Emirate of Dubai.

Buying a property in UAE used to be very complex process for foreign investors and buyers. UAE property laws enabled foreigners to free hold leases of UAE property for unlimited time period. They get permission to apply for 10 to 99 years leases in specific areas. They are allowed to transfer their rights to other person. Beneficiary of free holders are entitled for the property upon death of freeholder. In order to possess freehold properties in certain areas, buyers have to get approval from the ruling government. But areas that already get approval for foreigners, any individual or foreign company will be eligible to hold Property.

To lease properties, like apartments and residential properties, tenancy contract is usually signed for one year if not, it will be specified in written contract. In case of any dispute between Land lord and tenant, Dubai has established the Rent Dispute Settlement Centre (RDSC) through Decree No. 26 for 2013. RDSC includes four departments: Arbitration & Reconciliation Department, Department of First Instance, Department of Appeal and Law Enforcement Department.

First the Arbitration Department will try to settle disputes amicably. If not successful, a lawsuit has to be lodged with the Department of First Instance, which will deliver its Judgement. Such Judgement is final unless appealed to the Department of Appeal.

 

Inheritance Property Law

This law is quite complex as compared to other Dubai property laws. If a deceased asset owner holds membership of other nation then inheritance law of UAE also consider law of other nation. It becomes more complex to decide inherited owners if a home owner holds dual citizen ship of two countries other than UAE. A valid will that fulfill all the legal standards of UAE and Dubai is essentially required to assign estate to legal beneficiaries. In the absence of legal will, an Intestate Court decides how a property should be divided among recipients. That’s why foreign investors and buyers investing in real estate Dubai are advised to have a valid will to save their asset for their families. However if there is no Will, the estate of the deceased can be distributed according to the personal law of the deceased.

 

Mediation and Arbitration

Disputes can be amicably settled in Dubai through legal procedure. Court ensures that the final Settlement is by mutual consent. The dispute is considered by a number of experienced mediators under the supervision of the competent judge. If the disputants reach a settlement an agreement is signed by the disputants and attested by competent judge. This signed agreement is a legally enforceable document. Upon reaching a settlement, 50% of the registration fee is refunded.

If one opts for Mediation and Arbitration to settle their disputes then they would be saving a lot of their crucial time. Due to all this Mediation and Arbitration has emerged as one of the preferred modes of dispute resolution today. It is less time consuming as compared to approaching courts for relief. The courts take a long time to deliver its final Judgment and many a times even after spending a significant amount of money the ultimate decision of the court might not favor both parties equally. But in mediation and arbitration this is not the case. Both the parties get a fair chance to present their stand. All this makes mediation and arbitration a very lucrative mode of dispute resolution.

Mediation and Arbitration gives both parties to dispute an equal chance to present their stand and to arrive at a solution which will not be burdensome on one party and would be beneficial for both. Mediation and Arbitration helps in amicable resolution of disputes and is now a preferred mode of dispute resolution.

UAE lays down the law relating to domestic Arbitration, international commercial Arbitration and enforcement of Foreign Arbitral Awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto.

In case of Mediation and Arbitration the parties to dispute must agree to submit themselves to Mediation and Arbitration to solve the issue of dispute amicably. Mediation and Arbitration can be used by companies, individuals or by parties to a contract. Most of the agreements today which govern the relationship between two parties have a Mediation and Arbitration clause specifically. This Mediation and Arbitration clause makes things simpler and in case of any dispute the parties submit themselves to Mediation and Arbitration.

 

Court Room Services - Civil - Stages of litigation

The UAE Courts follow the provisions of Federal Law No. (11) of 1992  to civil and commercial matters which are brought before the UAE Courts.

Jurisdiction over Civil Cases: Before filing a case, the litigant should make sure that the court, in which the case is to be filed, has the jurisdiction to hear the case according to the provisions of the UAE law.

Except for the cases involving property outside the country, the Courts of First Instance have the jurisdiction over cases filed against citizens or foreigners who have a home or place of residence in the country

Initiating a Civil Action:  The civil action is filed based on a statement of claim submitted by the plaintiff to the court. This statement must contain all relevant facts of the case, details of both plaintiff and defendant and the supporting documents.

Responding to a Civil Action:  The defendant should submit a defense memorandum and copies of his documents signed by him.

Appointment of Lawyers: The court will hear a duly appointed lawyer on behalf of the litigating parties. Such appointment gives the Lawyer the power to perform all necessary actions and procedures to file a lawsuit, follow-up its proceedings and defend until a decision on its merits is rendered.

Appearing before Court: On the day scheduled for hearing the case, the parties shall appear before the court by themselves or through their Lawyer.

The court proceedings shall be public unless the court on its own motion or at the request of either party decides otherwise to maintain the public order or morals or to preserve the dignity of the family.

The hearing shall be held in the first session, and the defendant, in this session, may submit his reply

If the claimant and defendant attend before the court on their own will and present their arguments, the court shall hear the case.If the plaintiff or the defendant failed to attend the hearing, the court shall decide the case, if possible. If no party requested to proceed with the case or attended the sitting within 60 days , the case will be dismissed.

If the defendant alone, after receiving the notification, fails to attend the hearing, the court will decide in the lawsuit unless he was not served with the notice, wherein the court, may adjourn the hearing to another date.

The court may not adjourn a lawsuit more than once for the same reason mentioned by one party except for a valid excuse.

If the court finds its lack of jurisdiction to hear the case, it should refer the case referral to the competent court, and the court should notify the parties about its decision.

Pronouncing Judgment: The judgment shall be pronounced publicly by the judge.

The court, in issuing its verdict, shall automatically decide on the expenses of the lawsuit as well. The expenses of the lawsuit should be incurred by the party defeated in the case.

Appeal: The defeated party may file an appeal before the appeal court within 30 days unless otherwise provided by the law.

Appeals are subject to the similar rules and procedures that apply to the lawsuits brought before the Court of First Instance.

Petition for Review of Judgment: The litigants may seek the review of the final judgment in circumstances such as occurrence of fraud by the adversary which influenced the verdict, or the court decision was based on papers which were confirmed or judged to be falsified after the issuance of the ruling, or was based on the testimony of a witness who was later judged as perjury.

Appeal before the Supreme Court: The litigant parties can challenge the judgment issued by the Courts of Appeal before the Supreme Court. Supreme Court may allow the appeal under certain circumstances such as the appealed judgment was based on the violation of law or on erroneous application or interpretation.

Execution of Judgment: The judgment is executed under the supervision of the execution judge at the Court of First Instance, assisted by sufficient number of execution assistants  .

 

Penal Cases

After considering the provisions of the provisional constitution, Federal Law No. (1) of 1972 concerning the functions of the Ministers, the powers of Ministries and the laws amending it, and in accordance with the presentations made by the Minister of Justice, approved by the Council of Ministers and the Federal National Council and ratified by the Supreme Council of the Federation have promulgated FEDERAL LAW NO (3) OF 1987  THE  UAE PENAL CODE. The law attached therewith on crimes and penalties shall be enforced, and any provision contrary to its provisions was repealed. According to this law no one shall be condemned for a crime committed by another and the accused shall be presumed innocent until he is proved guilty

Dubai Public Prosecution strives to create a secure community by protecting the legal rights and freedom of the community, using justice, independence, and cooperation with its people to ensure a fair and secure society. It believes in transparency and accuracy of investigations and uses modern techniques to create an efficient public prosecution for Dubai. Justice is achieved by protecting the rights of all parties involved in court cases, irrespective of gender, Nationality, religion or social status. It conducts all investigations independently and imposes charges based on clear and precise evidence.

 

Family Law

People of different religions have their own respective laws. Hindus are governed by Hindu Law, Muslims are governed by Muslim Law, Zoroastrians are governed by Parsi Law and Christians by Christian Law. Marriage, divorce, Custody, Guardianship, maintenance, etc are all issues which are governed by family law. From marriage to the laws of successions and inheritance are governed by family law.

 

Divorce

Expatriate couples are often faced with the painful process of divorce. Alongside the emotional impact of divorce, couples suffer from additional stress of the laws and procedures of divorce in UAE. With a population equally divided between Muslims and Non-Muslims, it is important to know that the principles of Shariah are applied to all Muslim divorces, whereas Non-Muslims are governed by their personal law.

The kind of divorces under Shariah and UAE laws broadly fall under 2 categories; Mutual consent divorce or non-mutual consent divorce. As the name signifies, a mutual divorce is one where the parties mutually agree to end their marriage. Our team of expert lawyers, fluent in Shariah and other personal laws makes the entire process for our clients as transparent and simple as possible. This process involves drafting a settlement agreement based on the laws of the UAE and which can later be enforced against the party in breach of the same. This settlement contract is drafted and agreed between the parties before being signed and presented to the court. All couples must go through the Reconciliation committee which precedes the settlement agreement where the committee, in the interest of society and the respect for the institution of family decide to give the couple their last chance to reconcile the marriage.

In the event of a non-mutual divorce Law of UAE permits a non-Muslim expatriate living in the UAE to elect to apply the law of his or her country or Sharia Law.

 

Alimony /Maintenance

Maintenance under Shariah laws is a concept many Muslim expatriates are unaware of whilst living in the UAE.

Being specialists in this field allows us to draw upon our vast experience in terms of explaining to clients what they and their kids are likely to receive as maintenance. Maintenance is primarily for the children by their father. It gives rise to how this issue should be negotiated and presented before the courts to ensure that our clients get their due and that the other party does fulfills his obligations under the UAE laws.

The issue of maintenance can be one which can be addressed in the settlement agreement between the parties, if they mutually agree on the terms of maintenance. Such agreements are drafted by our lawyers skilled in this field and who are well aware of the fact that any such agreement shall be drafted in a manner which makes it enforceable against the other party under the UAE laws in the event that the other party breaches the same. At the same time, the agreements have to be flexible enough to allow changes in the maintenance structure depending on the change in circumstance of the father of the children.

If the issue of maintenance is not mutually agreed upon, it is then the job of the lawyers to please the case infront of the judge and attach facts and evidence to support their claim. What is regarded as relevant by the courts and what facts are to be disclosed is also a decision made by the lawyers drawing on their experience of successful cases.

This entire process, although lengthy, can be handled with a lot of care, knowledge of UAE laws and attention to detail by our lawyers, who, in the absence of precedents, only have their experience to rely on and the awareness of how the system of family law operates in the UAE.

 

Custody

Custody is the single most important and argued term in the event of a divorce. The principles of custody in Shariah are different and more favorable to the mother.

In shariah it is also important to distinguish between the custodian and the guardian. The custodian is in most cases the mother and the guardian, the father. In most cases the mother will become the ‘custodian’ of young children, for boys till the age of 11 years and for a girl till the age of 13 years, and the father the ‘guardian’. The obligations of the custodian, mostly the mother are to look after the affairs of the child on day to day basis.

Custody can be withdrawn from a parent for various reasons, all of which should in some way or the other is harmful to the child and detrimental to child’s upbringing. The courts in the UAE primarily look at the betterment of the child when making such decisions.

If the mother is the custodian of the child, the father is still, in his capacity as the guardian, still responsible for the child’s financial needs and needs to pay towards his child’s maintenance. The amount of the maintenance is decide by the courts based on the income of the father and can change when the need arises.

Another important thing to note when it comes to custody is the jurisdiction that the custody shall be applied for. Foreign Orders issued by courts outside the UAE are not always enforceable in the UAE because the UAE considers children in its borders and jurisdiction to be their responsibility and take it upon themselves to insure that the best decisions are made for the children. Hence, custody, for children residing in the UAE should always be applied for through the UAE courts.

 

Will

The "Will" in traditional Islamic inheritance law has certain restrictions. However Non-Muslim expatriates in the UAE may choose to have their own personal law.

In Shariah the testator may not bequeath more than one-third of his net estate unless the major heirs consents to the bequest or there are no legal heirs at all or the only legal heir is the spouse who gets his/her legal share and the residue can be bequeathed.

A will may not be made to an heir unless approved by all other major heirs, it is then executable on the share of the one who consented. A written will where there are no witnesses to an oral declaration is valid if it written in the known handwriting/signature of the testator.

According to the UAE inheritance law a will is valid if made by a person having the capacity to donate. However, a discerning minor can make a will subject to ratification on attaining the majority. A will shall be executed after the settlement of the burial expenditures and payment of the deceased debts from the succession. The testator has the right to amend or revoke a will totally or partially. The disposal of the bequeathed property by the testator is considered a revocation of a will.

The legacy must be the property of the testator and the object of the wills shall be legitimate.

In order to accommodate those residents of the UAE who ascribe to different religions, the Law of Personal Status permits a non-Muslim expatriate living in the UAE to elect to apply the law of his or her country to matters of personal affairs. Further Article 17 of the UAE Civil Code states that “inheritance shall be governed by the law of the testator at the time of his death”.

DIFC Wills and Probate Registry:

On Sunday 3rd May 2015 the Dubai International Financial Centre opened its own Wills and Probate Registry. This is a very important development for non-Muslim expatriates to ensure their own Will can be registered with the peace of mind that Sharia principles will not apply to their Dubai Estate. This landmark development should certainly promote investment in the region and avoid family members having to become involved in lengthy proceedings which can, on occasions, be encountered in the UAE Courts.

To create even more certainty, the DIFC Wills & Probate Registry is working in conjunction with the Dubai Land Department, to ensure that when the testator prepares a DIFC Will, that this is noted at the Dubai Land Department. This co-operation process allows the government bodies in Dubai to note that a DIFC Will has been registered and that Will governs the distribution of that particular property. This ensures that if any other party submits a court order to the respective government bodies, which is not a DIFC Court Order; the authorities should disallow the property transfer, to ensure the property is subject to the exclusive jurisdiction of the DIFC.

 

Sharia

We fully understand the significance and implication of Shariah laws on expatriates. In the event that an expatriate is not able to apply the laws of his country of origin, he is faced with no other choice but to be dealt with under Shariah Laws.

These laws, especially in the case of Non-Muslims, expatriates, can be a cause of a lot of confusion especially when it comes to matters of Inheritance Laws and Will. Both are of primary concern to an expatriate, especially those with families and dependents.

Our Lawyers have spent years studying and practicing the Sharia laws concerning the expatriates living in UAE. We can advise them how to protect themselves and plan according to their wishes.

 

Enforcement of Foreign Court Judgement

To enforce a foreign court Judgement first you have to prove the judgment. For that you need a duly attested judgment certified by the Ministry of Foreign Affairs and Ministry of Justice in UAE. This might seem easy, but it can be difficult in practice. But we can help you.

Needless to say, UAE local court needs a translation of the judgment in Arabic. But we can help you.

 

Retainership

It’s a professional service based on a Retainership Agreement.

Retainership Services include:

 

• Consultation - Negotiation and Drafting of settlement agreements, as and when required by the client, regarding recovery of outstanding debts

• As and when required issue legal notice(s) for the collection of outstanding debts and reply to any such notice, if so received

• As and when required, provide legal opinion, on local laws, the laws relating to the operation of business/company.

• Preside meeting(s) and discussions in order to successfully resolve the matter in dispute.

• Report the matter to the Police, Labor Department or other relevant Authorities, if required.

• As and when required register complaints/case(s) and defend the company from legal actions.

 

 

 

 

DISCLAIMER:

This website is a public resource maintained for providing general information about UAE laws to our clients. The purpose of this website is not to solicit client or work. Any content of this website should not be construed as legal advice.