How to Change Shareholders in a UAE Free Zone Company — 2026 Guide
Changing the shareholders (share transfer or adding a new partner) of a UAE free zone company is possible and relatively straightforward. This guide covers the process for 2026.
In this guide:
Common Reasons for Shareholder Changes
- Adding a business partner to the company
- Selling shares to a new investor
- Gifting or transferring shares to a family member
- Removing a departing partner
- Changing from sole ownership to joint ownership
Share Transfer Process
- Board resolution / shareholder agreement — Pass a resolution approving the share transfer. For multi-shareholder companies, existing shareholders may have right of first refusal.
- Share Transfer Agreement — Draft and sign a Share Transfer Agreement between the transferring and receiving shareholders. This document must usually be notarised.
- Submit to the free zone — Submit the application for ownership change with: signed share transfer agreement, passport copies of all new shareholders, NOC from existing shareholders (if required), payment of processing fee
- Updated Memorandum of Association (MoA) — The free zone prepares an updated MoA reflecting the new shareholding structure. This must be signed by all shareholders.
- Receive updated trade licence — The free zone issues an updated trade licence showing the new ownership structure.
Timeline and Costs
| Item | Typical Cost / Time |
|---|---|
| Share transfer processing fee | AED 1,000 – 5,000 (zone dependent) |
| MoA amendment fee | AED 500 – 2,000 |
| New shareholder visa (if needed) | AED 3,000 – 5,000 |
| Timeline | 5–15 business days |
Important Considerations
- If the incoming shareholder is a corporate entity (not an individual), additional documents are required (Certificate of Incorporation, MoA of the parent company, power of attorney)
- Some zones require a valid health insurance policy for new shareholders before the visa is issued
- The outgoing shareholder’s UAE investor visa must be cancelled if they no longer have a stake in any UAE company
- For DIFC and ADGM companies, the DFSA/FSRA must be notified of significant ownership changes in regulated entities