My partner wants to sell his stake to someone new — what actually needs to happen?

Transferring shares in a UAE company is governed by Federal Decree-Law No. 32 of 2021 on Commercial Companies, and starts with a share transfer agreement signed by the seller and buyer — typically requiring notarization and Arabic translation for mainland companies. The Memorandum of Association then needs amending to reflect the new ownership structure, and that amendment itself must also be notarized. Mainland companies must also respect remaining partners' pre-emption rights (a 30-day notice period) before selling to an outside party, unless those partners provide a written waiver. Free zones such as DMCC or JAFZA run their own portals and procedures, while financial free zones like DIFC and ADGM register transfers electronically without the traditional notarization requirement.

The step many companies overlook: the Ultimate Beneficial Owner register must be updated within 15 days of the actual change in ownership, with the licensing authority notified — delay exposes the company to penalties and restrictions on its license. From an accounting standpoint, a transfer between existing owners has no effect on the company's own financial statements — no journal entry is needed, since the company itself isn't a party to that transaction — unless it involves an actual issuance of new shares, in which case it's recorded as an increase in share capital. RASEEKH tracks the full documentation and registration chain so a transfer doesn't stall on one missed administrative step.