Dubai Economy issues 41,252 e-MOA and e-MOA addendums from Jan 2019 to May 2020

The Business Registration & Licensing (BRL) sector in Dubai Economy has issued 41,252 electronic Memorandum of Association (MOA) and e-MOA addendums from January 2019 to end-May 2020. This is in line with the Federal Decree-Law No. 7 of 2018 by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan amending articles within Federal Law No. 02 of 2015 on Commercial Companies.

The report showed that 85% of e-MOAs were issued by Dubai Economy, while 42% were related to e-MOA addendums of the total licences that require MOA. The electronic MOAs issued during the period varied with 90% being professional, followed by tourism, commercial and industry.

These figures underscore Dubai Economy’s strategy to further strengthen ease of doing business in Dubai, as well as enhance the emirate’s competitiveness and ability to attract businesses and support their sustainable growth, as well as to expand the number of businesses in various economic sectors in Dubai.

Business owners in Dubai can get the e-MOAs and all its addendums through Dubai Economy service centres or through approval to the text message from 6969 without the need to visit Dubai Economy.

The report also showed that during the first five months of 2020, Dubai Economy issued 9,282 electronic Memorandum of Association and e-MOA addendums; 89% of e-MOAs were issued by Dubai Economy, while 58% were related to e-MOA addendums of the total licences that require MOA.

New procedures added to facilitate doing business:

The BRL sector has added new procedures for e-MOAs that include: Selling shares contract for a Limited Liability Company and for a One-Person Limited Liability Company; and Issuing a Civil Company contract if UAE or GCC nationals are parties. Approval of a service agent contract ratification for a Sole Proprietorship and a Civil Company have also been added.

E-signatures for MOAs are available whereas the representative of the company (a Legal Person) can electronically sign on behalf of the company provided that a valid legal agency is available by the company or by a decision from the board of directors or through the powers of the manager mentioned in the articles of MOAs.

The new procedures included adding administrative powers that give the manager rights such as: Establish, manage and cancel subsidiaries of the main company; Register value-added tax and submit returns with the Federal Tax Authority; Transfer the salaries of workers and employees to banks in the UAE; Mortgage the movable or immovable property of the company; Represent the company before all courts and quasi-judicial bodies in the UAE; and finally Appoint an arbitrator in case of any disputes.

Dubai Economy strives to deliver solutions that contribute to facilitating ease of doing business in Dubai and expanding growth, in addition to maintaining a sustainable economy that reflects Dubai’s position as a global economic destination.

The continuous partnership between the governmental and private sectors will raise the level of efficiency and provide a seamless service environment for the business community as per the highest international standards. The Business Registration and Licensing sector in Dubai Economy focuses on making the process of registering new companies and issuing commercial licenses easy and fast, which reflects positively on Dubai's global competitiveness.

News Source: https://mediaoffice.ae/en/news/2020/June/27-06/Dubai-Economy-issues-41252-e-MOA-and-e-MOA-addendums-from-Jan-2019-to-May-2020

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