Change of shareholder
of a company in the UAE

Over 300 successfully completed cases of registration data changes in the commercial register

Over 30 successful share purchase and sale transactions

We handle all registration and organizational changes, ensuring full legal compliance and zero risks for clients

Share Transfer

This is the process of transferring ownership of a company’s shares from one party to another. It can occur between existing shareholders or involve new parties. For the transfer to be valid, the Share Transfer Agreement and the Amendment to the Company’s Memorandum must be notarized and registered with the Dubai Department of Economy and Tourism (DED).

Required documents for share transfer

For individual shareholders:

Passport copy
Address and contact details
Copies of Emirates ID and UAE visa (if UAE resident)

For corporate shareholders:

Trade license
Certificate of incorporation
Shareholders’ resolution
Memorandum of Association (MOA)
Articles of Association (AOA)
Power of Attorney for the company representative
Copy of the representative’s passport, Emirates ID, and UAE visa  (if UAE resident)

(For foreign companies, documents must be attested by the UAE Embassy and the Ministry of Foreign Affairs (MOFA) and translated into Arabic)

Company Share Transfer Procedures

Application submission and obtaining preliminary approval

The application is submitted to the Department of Economic Development (DED) (or the relevant free zone authority). The application includes details of the shares being transferred and the parties involved. The DED (or the relevant free zone authority) will issue preliminary approval after verifying the information.

Important points at the preliminary approval stage:

When removing a shareholder who is also a manager, two actions must be performed:
- Partner removal: This action concerns removing the shareholder from the company.
- Manager/officer change: This action appoints a new manager or officer to replace the departing shareholder.
If the company has multiple partners and the change results in only one remaining partner, the company must also change its legal status. This action updates the company’s legal structure to reflect the new single-partner status.

Drafting the Share Transfer Agreement and amending the Memorandum of Association

After obtaining preliminary approval from the Department of Economic Development (DED), it is necessary to prepare a Share Transfer Agreement (or Share Sale and Purchase Agreement) and amendments to the Memorandum of Association. This document records information about the new shareholder, the number of shares, the sale price, and any changes to the company’s status. Although this is a standard document, it may be supplemented with a more detailed internal agreement that does not require notarization.

Signing the Share Transfer Agreement and amending the Memorandum of Association

If both parties are in the UAE, the agreement can be signed at the Department of Economic Development without the need for notarization.
If one or both parties are outside the UAE but both have valid Emirates IDs, the agreement can be signed remotely through an online notary.
If one or both parties are outside the UAE and at least one party does not have a valid Emirates ID, the agreement can be signed within the UAE or via a Power of Attorney issued to a representative with a valid Emirates ID. Such a Power of Attorney can be issued online through the UAE notary portal.

Registering the share transfer with the DED (or the relevant free zone registrar)

This includes submitting the notarized Share Sale and Purchase Agreement and the amendments to the Memorandum of Association, as well as other required documents to the DED for registration. The DED will issue a payment voucher for the government fees for registering the share transfer and making changes to the company’s registration documents and license. The total amount of fees depends on factors such as share capital, the number and value of shares, and the number of partners. After payment, the amended incorporation documents will be generated and sent electronically.

Additional steps required

Update the company’s beneficial ownership register.
Update the company’s e-Signature card (if the authorized signatories have changed).
Update the Establishment card.
Cancel investor or partner visas for the shareholder who exited the company.
Issue visas and Emirates ID for the new shareholder.
Notify the servicing bank of the changes, complete the bank re-identification procedure, and change the account signatory (if applicable).
Notify other government authorities that issued licenses.
Notify partners and clients.

By following these steps, you can ensure a smooth and compliant share transfer process, maintaining the integrity and legal status of your business.

We serve customers in more than 30 countries, providing customized solutions to meet their unique needs.

No matter where you are in the world, we make registering your business easy and efficient. Our clients are located in: India, Pakistan, China, the United Kingdom, France, Spain, the United States, Switzerland, Austria, Finland, Germany, Mexico, Australia, Thailand, Cyprus, Vietnam, Bangladesh, South Korea, Indonesia, Montenegro, Argentina, Chile, Brazil, South Africa, Canada, Kazakhstan, Russia, Moldova, and Turkey.

Change of shareholder of a company in the UAE