By Laws Articles Of Association Template for the United Arab Emirates
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What is a By Laws Articles Of Association?
By Laws Articles of Association are fundamental to company establishment in the UAE, required under Federal Decree-Law No. 32 of 2021. This document is mandatory when incorporating any company in the UAE, whether in mainland or free zones, and must be prepared before company registration with the Department of Economic Development or relevant free zone authority. The Articles detail the company's internal governance structure, shareholding arrangements, management framework, and operational procedures. They serve as a binding agreement between shareholders and the company, establishing rights, obligations, and decision-making processes. The document must comply with UAE commercial law requirements and needs to be notarized and authenticated by relevant authorities. It forms part of the company's constitutional documents and is referenced for all major corporate decisions and disputes.
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About the By Laws Articles Of Association
When establishing a company in the United Arab Emirates, your By Laws Articles of Association form the constitutional backbone of your business entity. This comprehensive legal document outlines your company's governance structure, defines shareholder rights and obligations, and establishes the framework for decision-making processes that will guide your organization throughout its existence.
When do you need this document?
You'll need By Laws Articles of Association whenever you're incorporating any type of company in the UAE, whether in mainland jurisdictions or free zones. This requirement applies to Limited Liability Companies (LLCs), Public Joint Stock Companies (PJSCs), Private Joint Stock Companies, and other corporate structures. The document is mandatory before you can register with the Department of Economic Development or relevant free zone authority. You'll also need updated Articles when making significant changes to your company structure, such as increasing capital, changing business activities, or modifying shareholding arrangements. Foreign investors establishing UAE subsidiaries or joint ventures must prepare these Articles as part of their incorporation process.
Key legal considerations
Your Articles must clearly define the company's authorized business activities, as UAE law requires companies to operate only within their stated objectives. Include comprehensive provisions for share transfers, as UAE commercial law imposes specific restrictions on foreign ownership in certain sectors. Establish clear governance structures with defined roles for the Board of Directors, General Manager, and shareholders' meetings. Include provisions for profit distribution, reserve requirements, and annual audit obligations. Address dissolution procedures and asset distribution methods in accordance with UAE law. Consider including arbitration clauses for dispute resolution, specifying whether disputes will be resolved through UAE courts or international arbitration. Ensure compliance with Ultimate Beneficial Owner disclosure requirements under Cabinet Resolution No. 58 of 2020, particularly for companies with complex ownership structures.
Legal requirements in United Arab Emirates
Under Federal Decree-Law No. 32 of 2021, your Articles must be drafted in Arabic, though English translations are commonly prepared for international stakeholders. The document requires notarization by a UAE notary public and authentication by relevant government authorities. For mainland companies, the Articles must specify the registered office location within the chosen emirate and comply with minimum capital requirements specific to your company type. Public companies must include additional provisions regarding securities regulations under Federal Law No. 4 of 2000. Free zone companies must ensure their Articles comply with specific free zone regulations while maintaining consistency with federal commercial law. The Articles must address economic substance requirements under Cabinet Resolution No. 31 of 2019 for companies conducting relevant activities. Include provisions for maintaining statutory registers and ensuring compliance with annual filing requirements with the relevant authorities.
GOVERNING LAW
Applicable law
This By Laws Articles Of Association is drafted to comply with United Arab Emirates law. Key legislation includes:
UAE Federal Law No. 4 of 2000 (UAE Securities and Commodities Authority): Relevant for public joint stock companies and matters relating to securities trading and corporate governance of listed companies
UAE Cabinet Resolution No. 58 of 2020 on Regulating Ultimate Beneficial Owner Procedures: Regulations regarding disclosure and documentation of ultimate beneficial owners of UAE companies
UAE Cabinet Resolution No. 31 of 2019 (Economic Substance Regulations): Regulations requiring UAE entities conducting certain activities to demonstrate adequate economic presence in the UAE
UAE Federal Law No. 2 of 2015 on Commercial Companies: Previous companies law which may still be relevant for interpretation of certain provisions and historical context
Relevant Free Zone Regulations: Specific regulations if the company is established in any of the UAE's free zones, as each free zone has its own company regulations and requirements
UAE Federal Law No. 4 of 2012 on Competition Regulation: Relevant for provisions relating to anti-competitive practices and market dominance
UAE Federal Law No. 19 of 2018 on Foreign Direct Investment: Regulations regarding foreign ownership of UAE companies and related investment provisions
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