UAE Ministry Of Economy Initiates Registration For Family Business Registry

The Ministry of Economy has commenced accepting applications from family companies for registration in the unified registry for family businesses. This initiative aims to align family business practices with global standards, supporting their continuity in line with Federal Decree-Law No. 37 of 2022 on family businesses.

Abdullah Ahmed Al Saleh, Under-Secretary of the Ministry of Economy, stated that the UAE is committed to developing a robust legislative and regulatory environment to enhance the growth of family businesses. This commitment is driven by the sector’s significant role in promoting national economic growth and supporting regional and global competitiveness.

The Ministry launched the Unified Registry for Family Companies under Cabinet Decision No. 109 of 2023. The registry aims to build a comprehensive and standardised database containing all information related to family businesses in the country. This initiative seeks to elevate the operations of these businesses to more competitive and diverse levels.

To streamline the registration process, the Ministry has outlined a series of criteria and requirements for enrolling a family business in this registry. Meetings with various government entities, including chambers of commerce and industry, licensing authorities in economic development departments, and free zones, have been conducted to strengthen collaboration and coordination.

The Ministry explained that requests to register a family company must be submitted to the licensing authority that issued the economic licence to that company. The application will then be forwarded to the Ministry of Economy, which will decide after examining the company’s compliance with regulations stipulated in the Family Businesses Law and related decisions.

Upon successful review, the Ministry will proceed to register the applicant in the registry. Additionally, as per Cabinet Decision No. 106 of 2023 concerning the submission of the family charter, family businesses have the option to voluntarily register their family charters with the Ministry.

Family Charter

The family charter encompasses specific details pertaining to ownership, objectives, and family values, as well as mechanisms for evaluating shares and methods of distributing profits. The registration of family companies in the unified registry contributes significantly to enhancing business continuity through intergenerational transitions.

The Family Businesses Law governs company ownership by defining their capital, how partners can dispose of their shares, mechanisms for relinquishing them, organising the right to redemption, evaluation of shares, their categories, and their purchases.

With inputs from WAM