Sharjah Economic Development Department (SEDD) began to implement the Sharjah Executive Council decision regarding the registration of family businesses in the emirate.

This aims to develop the family business system in Sharjah in accordance with the best global practices that go with the provisions of Sharjah Executive Council Decision No. 31/2024 regarding the regulation of family companies in the Emirate of Sharjah.

The SEDD Chairman has stressed that Sharjah is working continuously to develop a legislative and regulatory environment to enhance the growth of family businesses and support their continuity and sustainability over the coming decades, in accordance with the best international practices.

He has added that such thing is important because family businesses represent a basic and significant element in enhancing the growth of the emirate’s economy and supporting its competitiveness regionally and globally.

Also, he has pointed out that in continuation of the national efforts to provide an ideal work environment for family businesses and encourage them to grow and prosper, a number of family businesses have been registered in the Companies Register.

SEDD Director has stated that the decision specified the scope of its provisions to be applied to family companies established in the emirate, existing companies owned by owners from one family, branches of family companies from the emirates, and family companies established in free zones, in a manner that does not conflict with the laws and regulations of the free zones.

According to the decision, the company shall have an incorporation contract in accordance with the provisions mentioned in the Companies Law.

The decision has also included articles regulating the ownership of the family company, the partner’s shares disposition and valuation, the categories of shares, the family endowment company, in addition to the family charter, dispute settlement, dissolution and liquidation of the company, executive decisions, implementation and validity.

Furthermore, the document that regulates the governance of family affairs related to the Family Business, and the family relationship with the family business, in accordance with Sharjah Executive Council Decision No. 31/2024 regarding the regulation of family companies in Sharjah.

This charter includes the rules for family ownership, goals and values, mechanisms for evaluating shares and methods for distributing profits.

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