STOCK Ministry of Economy
Image Credit: WAM

Abu Dhabi: The Ministry of Economy announced that it has started accepting applications from family companies for their registration in the unified registry for family businesses. The initiative aims to align the practices of family businesses with global standards and support their continuity.

Abdullah Ahmed Al Saleh, Under-Secretary of the Ministry of Economy, explained that the UAE is committed to developing a robust legislative and regulatory environment to enhance the growth of family businesses and support their continuity and sustainability over the coming decades, following global best practices.

The Ministry launched the Unified Registry for Family Companies to build a comprehensive and standardised database containing all information related to family businesses in the country.

Additionally, the Ministry has outlined a series of criteria and requirements for enrolling a family business in this registry.

The Ministry also conducted a series of meetings with various government entities, including chambers of commerce and industry, licensing authorities in economic development departments, and free zones, to strengthen collaboration and coordination and family business registration in the unified registry.

The request to register a family company should be submitted to the licensing authority. The Ministry of Economy will review the application and make a decision based on the company’s compliance with the Family Businesses Law. If approved, the Ministry will register the applicant in the registry.

Family businesses can voluntarily register their family charters with the Ministry. This charter encompasses specific details about the ownership, objectives, and family values, as well as mechanisms for evaluating shares and methods of distributing profits.

The Ministry stated that registering family companies in the unified registry enhances business continuity through intergenerational transitions. This is crucial under the Family Businesses Law, which governs ownership, capital, share disposal, redemption rights, and share evaluation.fsd