MUSCAT, APRIL 14 - The Ministry of Commerce and Industry is all set to implement the new commercial companies law (CCL) from Wednesday, April 17. The CCL enacted by Royal Decree No 18/2019 addresses numerous matters that will regulate the capital market and provide the main elements for building a robust financial industry capital market in the Sultanate.
“The new law will help in attracting investments, enhancing governance and inclusiveness and will speed up registration of commercial companies”, said Mohammed bin Rashid al Badi, Acting Director of the Legal Department at the Ministry of Commerce and Industry.
With the implementation of the new CCL, the old Commercial Companies Law, which was enacted in 1974, will cease to exist.
He said that the new law makes it mandatory for the competent authorities to set the governing principles for commercial companies. According to the CCL, for registration of the commercial companies it is mandatory that all the documents of the establishments and their amendments are written in Arabic.
“The new CCL copes with the recent developments in financial industry including providing Islamic finance products such as sukuk and Islamic investment funds”, Al Badi said.
As per the new law, a holding company will take the form of a joint stock company unlike the previous situation where the holding company had the options to be a limited liability company or a joint stock company.
“The new law organises all the procedures for establishment of public joint stock companies and reduces the terms required for this”, he added.
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