What penalties are applicable to UAE onshore or mainland LLC companies?

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A number of administrative penalties have been recently introduced following the issuance of a UAE Cabinet resolution. This sets out fines for non-compliance with the UAE Federal Decree by Law No. 32 of 2021 concerning commercial companies (New Companies Law).

The introduction of such a resolution strongly indicates that overseeing UAE Cabinets are taking a much stricter approach to company adherence with the New Companies Law.

Non-compliance  Approximate penalty (AED)
Accounting register: 
Failure to maintain an accounting register
Trade name change: 
Failure to comply with a decision to change the trade name
A monthly fine of 500 reaching a maximum amount of 5,000
Failure to have a required UAE national ownership percentage/ minimum number of Emirati board members, should the LLC carry out activities with strategic significance
Memorandum of Association (MOA): 
Failure to amend the company MOA to ensure it is in line with the New Companies Law
A monthly fine of 500 reaching a maximum amount of 5,000
Loss disclosure: 
Failure to call a general assembly should the company amount losses equal to 50% or more of its capital
Data access: 
Denying shareholders access to minutes of meetings, books and other specific company documents
Board meetings: 
Failure to invite a director or board member to a board meeting
Refusal of information/ misleading information: 
Refusal, concealment or failure to provide misleading information to authority inspectors
Share disposal: 
Disposal of shares in violation of the New Companies Law
General assembly: 
Failure to call an annual general meeting
5,000 which increases to 10,000 if requested by the Ministry


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