UAE Free Zone Company — Issuing and Transferring Shares Guide 2026
UAE free zone companies can issue and transfer shares. Here is the complete 2026 guide on how shares work in UAE free zone companies.
In this guide:
Initial Share Structure at Incorporation
- At incorporation: Share structure is recorded in the Memorandum of Association (MOA)
- MOA content: Number of shares; value per share; shareholder names and percentages
- Example: 100 shares at AED 1,000 each; Shareholder A = 60 shares (60%); Shareholder B = 40 shares (40%)
Issuing New Shares (Capital Increase)
- Board resolution: Directors pass board resolution approving new share issue
- Free zone approval: Submit to free zone authority; MOA amendment required
- Cost: AED 500-2,000 for MOA amendment with free zone
- Timeline: 1-5 business days depending on free zone
Transferring Shares (Adding / Removing Shareholders)
- Share transfer agreement: Buyer and seller agree price and terms; sign share transfer agreement
- Free zone notification: Must notify free zone; update MOA
- Board approval: Directors typically must approve transfer (check MOA/shareholder agreement)
- Cost: AED 1,000-5,000 with free zone for shareholder change
- Timeline: 3-10 business days
Share Certificates
- Certificate of shares: Most free zones issue share certificates; evidence of ownership
- Digital: Some free zones issue digital certificates; check with your free zone
- Pledge: Shares can be pledged as collateral for financing (requires free zone and lender approval)