How to Add or Remove Shareholders from a UAE Free Zone Company (2025 Guide)

Introduction

UAE Free Zones allow flexible ownership structures, making it easy to add or remove shareholders as your business evolves. Whether onboarding investors or restructuring ownership, this guide explains the 2025 legal process.

Reasons Shareholders Are Added or Removed

• New investment
• Exit of a partner
• Corporate restructuring
• Mergers & acquisitions
• Family ownership transfers
• Compliance or tax reasons

Documents Required

• Updated passport copies
• Share transfer agreement
• Board resolution
• Updated MOA
• Power of Attorney (if applicable)
• NOC from existing shareholders (sometimes required)
• Fee payment receipt

Steps to Add or Remove a Shareholder

1. Draft shareholder resolution
2. Update MOA with Free Zone authority
3. Submit documents through portal
4. Share transfer valuation (some zones)
5. Pay fees
6. Receive updated corporate documents

Processing time: 1–7 days.

Common Challenges

• Disputes between partners
• Missing valuation
• Document notarization delays
• Passport renewal issues
• Multi-jurisdiction ownership complications

Costs Involved

Typically ranges between AED 1,500 – AED 6,500, depending on Free Zone and structure.

FAQs

Do all shareholders need to be physically present?

No—e-signatures or power of attorney is accepted in most zones.

Does the license need to be amended after changing shareholders?

Yes, updated corporate documents will reflect new ownership.

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