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Adding or Removing Shareholders
How can shareholders be taken out of a trade license in Dubai?
Fimkin could be your trusted consultant when it comes to adding or removing shareholders regardless of any emirates. For example in Dubai, a trade license can have its shareholders removed in one of two ways:
By mutual consent
In order to remove a shareholder from the company, all of the shareholders must consent. A resolution of the board of directors or a shareholders' agreement may be signed to accomplish this.
By judicial decree
The other shareholders may request a court order to remove a shareholder if the shareholder refuses to be removed. After weighing the case's merits, the court will render a judgment.
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Adding or removing Business activity from License ?
To remove a shareholder, the consent of all shareholders is required. A resolution of the board of directors or a shareholders’ agreement may be signed to accomplish this.
If the company wants to take the shareholder out of the trade license, it needs to submit an application to Dubai Economy. The following files need to be submitted with the application:
A copy of the board of directors' resolution or the shareholders' agreement
A duplicate of the shareholder's Emirates ID or passport
A duplicate of the shareholder's certificate of shares
If all the requirements are met, the application will be reviewed by Dubai Economy and approved.
The business will receive a new trade license with the share holders name removed.
The procedures for removing a shareholder from a trade license in Dubai through a court order are as follows
A lawsuit must be filed in court by the shareholders who wish to remove the shareholder. The Dubai Court of First Instance is where the case must be filed.
The shareholder who is being removed will receive a summons from the court. The shareholder has to show up in court to respond to the accusations.
After hearing the case, the court will render a judgment. The shareholder may be asked to have their trade license revoked by the court.
The name of the removed shareholder will not appear on the new trade license that the company will receive.
How can I extend the number of shareholders on a Dubai trade license?
In order to add more shareholders to a trade license in Dubai, you must first determine your eligibility, then gather the necessary paperwork, file your application, and wait for it to be approved. It’s crucial to begin the application process as soon as possible, to have all the necessary paperwork, and to submit it accurately. Assisting you with the process is another option.
Verify the prerequisites for eligibility
Not every company is able to increase its shareholder count. For instance, companies that are fully owned by the government or a free zone authority are not permitted to have more shareholders.
Gather the necessary paperwork.
The documentation needed will change based on the new shareholder’s country of origin. Still, a few of the standard documents are as follows: A copy of the new shareholder’s passportA copy of the new shareholder’s Emirates ID, if applicableEvidence of residency, if anyMemorandum and (if applicable) Articles of AssociationResolution of shareholders. Form for UBO Declaration.
Send in your application
You can turn in the application in person at a DED service center or online. If the difference between the total sale value and the capital increase is less than 100,000, each party must pay an application fee of AED 300. The fee is equivalent to 0.5% of the amendment’s value if the difference exceeds 100,000.
Wait for the approval
The approval process requires 5-7 working days. The new shareholder will be added to the trade license once the application is approved,