São Paulo – The Jebel Ali Free Zone (JAFZA), in Dubai, has announced new regulation that will grant more freedom to companies to start up or restructure their local operations, as well as to list their stock in the local stock market. The information was published by the website Gulf Business.
Under the new rules, the companies classified as Free Zone Establishment (FZE), Free Zone Company (FZCO) and branches will answer to only one set of rules, which will allow them to reorganize or convert their operations to a different category.
A new legal definition was also created, called Public Listed Company (PLC). The new regulation also allows for foreign companies to transfer to the free zone with all their commitments.
Another change opens up the possibility of companies to establish themselves at the Free Zone with the capital suitable to their activities, plus it changes the minimum and maximum shareholder requirements from two to fifty, respectively.
Before, the FZEs needed a single shareholder with a minimum capital of AED 1 million (USD 272,200) and the FZCOs needed from two to five shareholders, with a minimum capital of AED 500,000 (USD 136,100).
*Translated by Sérgio Kakitani
