Dubai: Hazem Helmy
The resolution of the Cabinet no. (78) of 2022, relating to the list of administrative sanctions for acts committed in violation of federal law no. (32) of 2021 on commercial companies, increased sanctions for companies operating in the UAE that violate the contribution of UAE Citizens according to the related Strategic Impact activities.
The decision indicated that companies that do not comply with the decision are facing a large fine of up to 200,000 dirhams.
The ruling clarified that general partnerships and limited partnerships are punished with a fine of 50,000 dirhams, in the event that they violate the provisions established regarding the percentage of the contribution of state citizens in the capital of the companies.
50 thousand dirhams on partnerships and limited partnerships
100 thousand dirhams for limited liability companies
150 thousand dirhams on private joint-stock companies
200 thousand dirhams on public holding companies
The fine of 100,000 dirhams is imposed on limited liability companies that violate established provisions regarding the percentage of contributions of state citizens to the capital of the companies, or the percentage of citizens on their boards of directors.
According to the decision, private joint-stock companies are subject to a fine of 150,000 dirhams for violating the percentage of citizens’ contributions to the capital of companies, or the percentage of citizens on their boards of directors.
The penalty for public holding companies, which violate the decision on the percentage of UAE citizens’ contribution to the capital of companies, or the percentage of citizens on their boards of directors, is 200,000 dirhams.
According to the Ministry of Economy, the activities with strategic impact are, security and defense activities, activities of a military nature, banks, currency exchange shops, financial companies, insurance activities, currency printing, communications, Hajj and Umrah services, centers of memorization of the Koran and services related to the fisheries sector.
