When a small business succeeds, chances are -the reason is family!
Family-owned businesses are not new in the market, these businesses have significantly contributed to the growing economy of UAE for quite some time. The Decree No. 9 of 2020 regulates family-owned businesses in the Emirate of Dubai.
The natural outcome of a family-run business is co-ownership of properties among members and the new law throws light upon this aspect too, let’s unpack how!
Points to be noted from the new law!
- The family members can now enter into a ‘family property contract’, which will allow collective ownership and administration/management of family-owned properties. Take the assistance of an experienced family lawyer in Dubai for drafting a perfect family property contractas per your business needs, and then get it duly attested by the Notaries Public.
- Even in the case of transfer of property, ownership for the family can now be ensured for years to come under the new law.
- The contract under the law covers both movable and immovable property, existing or new, except for public joint stock companies.The family property can include real estate, shares or interest in companies in the contract.
- The parties to the contract must have one business or common interest. The contract must not be ambiguous regarding individual shares of the members of the family.
- The law will benefit both nationals and expats, Muslims or non-Muslims.
Who will decide the disputes? A special committee of legal and financial experts will settle ‘family property contract’ disputes.
How to amend the contract?
It has to be noted that the above-mentioned contract is valid for a renewable period of up to 15 years. The amendment to the contract can be made by unanimous consent of the partners.
Conclusion
This law will encourage people to have family ownership of business property & help them to keep their family-owned businesses intact for years to come. This Law willalso lower the chances of a division of these types of businesses, which eventually strengthen the economy. BSB Legal Consultants has the best family lawyers in Dubai who will be at your service, for more information contact us at info@bsb.legal or call us at +97150 8014003.