How to Change the Structure of Shareholders in Dubai, the UAE?

Sometimes a change of the corporate structure of shareholders is necessary for Dubai, the UAE. This procedure has its distinguishing features and requires a set of necessary documents. They are predetermined by the type of the company and a place where your business is registered. The procedure varies depending on the fact if it is on the main territory or in one of free trade zones.

The following article presents information on the general procedures of changing the structure of shareholders. The main components of such corporate structure changes in the UAE and Dubai, in particular, include:

• Obtaining all required information on shareholders;
• Elaborating share transfer forms;
• Signing the elaborated share transfer forms;
• Getting a new set of documents from the registry.

Concerning the required documents, if this is an individual shareholder, these include the copy of a passport and other essentials of personal identification. If this is a legal entity, you’ll have to provide documents to a company along with the documents on company’s shareholders.

The form of the share transfer differs depending on a specific governing body a company is registered in. Normally, it contains information on the company, its data, the percentage of shares transferred to new shareholders as well as information on new shareholders.

There are certain prerequisites which need to be fulfilled to make the change of shareholders possible. It includes the absence of due payments as well as other debts related to fees imposed by authorities. The company’s license should be valid as well as other documents shall be fully valid. Subsequently, the company is checked by the corresponding authorities and undergoes some other necessary procedures.

As soon as the documents are ready, they are submitted to the respective registry. Then the corresponding payment is to be done. The whole procedure normally takes about a week. When the share transfer is finished, the registry provides new documents for the company with new shareholders.

How does the change of a shareholder influence a bank account?

Please note that whenever you decide to change a shareholder structure in Dubai, the UAE, do not forget to let your bank to know about it. If the change affects less than fifty percent of shares, then your bank will probably just accept documents of the new shareholders. Your company will be able to keep on operating with the same bank account.

If the change of a shareholder structure affects more than fifty percent of the shareholders, a bank will most likely ask you to close your account. As soon as the shareholder change is over, you will be able to apply for a new account. This is due to the fact that businesses with more than 50% change of shareholders need to proceed with the new bank due-diligence.

If the information above needs further clarifications, please, contact us, and we will be happy to assist you and answer all of your questions. Our specialists will give you comprehensive support in all aspects of shareholder structure change in Dubai, the UAE.