SEDD Implements Executive Council Decision To Enhance Family Business Registration In Sharjah

The Sharjah Economic Development Department (SEDD) has started implementing a decision by the Sharjah Executive Council. This decision focuses on registering family businesses in the emirate to enhance their development. It aligns with Executive Council Resolution No. 31 of 2024, which regulates family companies in Sharjah according to global best practices.

Hamad Ali Abdalla Al Mahmoud, Chairman of SEDD, highlighted Sharjah's commitment to fostering a supportive legislative and regulatory environment for family businesses. He emphasised that these businesses are crucial for boosting the emirate’s economy and enhancing its regional and global competitiveness. The registration of several family businesses in the Companies Register is part of ongoing national efforts to create an ideal work environment for their growth.

Fahad Ahmed Al Khamiri, Director at SEDD, explained that the decision outlines specific provisions for family companies in Sharjah. These provisions apply to companies established within the emirate, those owned by a single family, branches from other emirates, and those in free zones, ensuring compliance with free zone laws and regulations.

The decision mandates that each company must have an incorporation contract as per the Companies Law. It also covers ownership regulations, partner share disposition and valuation, share categories, family endowment companies, and more. Additionally, it addresses dispute resolution, company dissolution and liquidation processes.

A document governing family affairs related to business operations is also part of this initiative. This charter defines rules for family ownership, goals and values, share evaluation mechanisms, and profit distribution methods. It aligns with Executive Council Resolution No. 31 of 2024 concerning family company regulations in Sharjah.

This comprehensive approach aims to ensure that family businesses operate efficiently while maintaining harmony between family relationships and business interests. By doing so, it supports their sustainability over future decades.

With inputs from WAM