Share Transfer of a Limited Liability Company
Shareholder structure is the distribution of ownership and voting rights among several Shareholders. The shareholder structure focuses on how power is divided among the various management, current shareholders, and future shareholders.
In certain circumstances, the shareholders of an existing private liability company may consider transferring and selling their shares to new shareholders.
Our firm, Mouannes International Service have assisted the SIMCA GARAGE LLC, which was established in 1970 in Dubai and jointly owned at the time by (2) parties, each holding unequal share.
We have successfully completed the change of the shareholders of SIMCA GARAGE LLC and the company structure of such an old company that hasn’t been restructured since its establishment date. The shares of the company were therefore redistributed unequally among the children of the majority shareholder.
There are specifics in the process and paperwork for this transition that depend on the sort of company, where it was registered and other variables.
We will not dive into specifics of individual free zones in this review; instead, we will focus on the general paperwork, stages, and procedures for changing the shareholder’s structure.
The following are the fundamentals of any shareholder change in the UAE:
- Obtaining the required and appropriate information about the new shareholder or shareholders;
- Preparing the resolutions and share transfer paperwork;
- Signing the resolutions and transfer paperwork stating the newly added shareholder or shareholders’;
- Receiving a new set of documents from the registry;
- Updating the company license reflecting the new shareholder (s).
If the new shareholder is a physical person, the needed documents would also include a passport copy and other forms of personal identity. If the shareholder is an entity, the corporate documents of that company, as well as the records of its directors and shareholders, must be provided.
The regulations of each distinct authority where the organization is registered determine the share transfer form. It includes the following elements: the percentage of shares that will be transferred to the new owners, information about both current and new shareholders, and signatures among other.
Once all the paperwork is completed and signed before the concerned authorities in the UAE, the documents for shareholders change can be sent to the appropriate registrar, it usually takes one week to execute the modification itself in the registration. The registry issues new corporate documents with the new shareholder or owners after the shares have been transferred.
Our firm, Mouannes International Service would assist you in restructuring and reforming your existing company irrespective of how recent or old the company is considering the UAE anti-concealment law and all the applicable companies’ laws as per the recent amendments.
For more information, please get in touch with us.
Tel: 04 381 2021
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