MANDATORY ADOPTION OF NEW ARTICLES OF ASSOCIATION FOR DMCC
Under the new DMCCA Company Regulations 2020, a new Articles of Association known as the Standard Articles has been introduced, replacing the previous Memorandum and AOA. Companies registered before 2 January 2020 must adopt the AOA within twenty-four (24) months of the new DMCCA Company Regulations 2020 which came into effect on 1 January 2020.
Rules
• A DMCC Company, at any point after being registered and issued a License, may adopt new non-standard Articles by Special Resolution. The adoption of new Articles takes effect on their registration by the Registrar.
• A Company’s License must be valid at the time of submission of the application and until process is completed. The application will be put on hold if the License expires during the process until License is renewed.
• There should not be any active Company sanction.
• If at any time, the Registrar notifies a Company that, in the opinion of the Registrar, the Articles of the Company contain a provision, which is contrary to, or inconsistent with the CR 2020, that Company must amend its Articles within twenty (20) Business Days of such notification in such manner as the Registrar may direct.
• The new Articles must be deposited with the Registrar within 15 (fifteen) Business Days of the Resolution to adopt new Articles or such other date approved by the Registrar.
• Any rights and obligations of the Shareholders and/or the Company, which have arisen under the Articles prior to the adoption of the new Articles, will not be affected unless the new Articles specifically provide otherwise.
Recent Posts
AML Compliance Frameworks: The New Currency of Trust
In the evolving business climate, connectivity has become the foundation on which businesses today operate. Geographical...
Read More
Business Valuation: Decoding The Strategic Worth Of An Enterprise
The global markets and innovation ecosystem are evolving. So are the global economies. As the demand for a level playing...
Read More
UAE E-Invoicing: FTA Announces Extension To ASP Deadline
In a digital-first economic landscape, countries with a first-mover advantage are rapidly becoming global innovation hub...
Read MoreIn a digital-first economic landscape, countries with a first-mover advantage are rapidly becoming global innovation hubs. The UAE’s implementation for mandatory e-invoicing is one of the steps in that direction. In a bid to help businesses prepare better, the Federal Tax Authority recently announced the extension to the deadline for appointing an Accredited Service Provider (ASP) from 1st July to 30th October, 2026. This extension will enable businesses that are still assessing the regulatory requirements to lay the
necessary groundwork before implementing the system in their operations, while ensuring all compliance obligations are met. While offering flexibility, this also presents an opportunity for owners to closely monitor the systems and controls before the mandatory rollout comes into effect. E-invoicing is steadily reshaping how enterprises operate in the UAE, moving invoicing beyond PDFs, scans, and email-based exchanges.
Under the new framework, invoices will now be generated in XML format, enabling standardised data exchange and direct reporting to the FTA.
The new framework will do more than just improve efficiency and transparency with a seamless exchange of invoicing data, but etch a new chapter in how compliance will look in a digital tax ecosystem.
In a digital-first economic landscape, countries with a first-mover advantage are rapidly becoming global innovation hubs. The UAE’s implementation for mandatory e-invoicing is one of the steps in that direction. In a bid to help businesses prepare better, the Federal Tax Authority recently announced the extension to the deadline for appointing an Accredited Service Provider (ASP) from 1st July to 30th October, 2026. This extension will enable businesses that are still assessing the regulatory requirements to lay the necessary groundwork before implementing the system in their operations, while ensuring all compliance obligations are met. While offering flexibility, this also presents an opportunity for owners to closely monitor the systems and controls before the mandatory rollout comes into effect. E-invoicing is steadily reshaping how enterprises operate in the UAE, moving invoicing beyond PDFs, scans, and email-based exchanges.
Under the new framework, invoices will now be generated in XML format, enabling standardised data exchange and direct reporting to the FTA.
The new framework will do more than just improve efficiency and transparency with a seamless exchange of invoicing data, but etch a new chapter in how compliance will look in a digital tax ecosystem.
E-Invoicing in the UAE
Why This Extension Matters
With the mandatory rollout to come into force from January 2027, the extension does not alter the UAE’s broader e-invoicing timeline. The initial rollout will see businesses generating annual revenues above AED 50 million, leading the transition with smaller enterprises gradually brought in through subsequent phases.
This preparation window showcases the consideration and planning that is required ahead of the rollout. As the system pivots towards e-invoicing, it becomes more than just the exchange of data. It comes down to how businesses manage the data, the reporting process in place, and if they are in sync with the compliance requirements.
Enterprises in Dubai and other emirates are turning their attention towards the quality of the invoice data while ensuring consistency and the ability of the existing systems to support machine-readable invoices.
Another key challenge for organisations that are operating across multiple entities or invoicing platforms will be integration and standardisation. This is where having the right ASP matters. With the implementation timeline moving closer, the demand for the ASP is anticipated to see an increase.
The revised deadline will help businesses get more time to make early planning and conduct accurate evaluation.
Accredited Service Providers
A Key Component of the E-Invoicing Framework
The announcement brings the role of the accredited service providers within the UAE’s e-invoicing ecosystem into the spotlight. With businesses transitioning to incorporate accounting and ERP systems into their operations to generate invoices, the ASP will become the linchpin between them and the regulatory authorities.
ASPs will now not only have to facilitate the exchange of the data but also ensure a standardised structure for invoicing across the UAE’s e-invoicing ecosystem. The support by the ASP will enable ease in compliance and meeting the technical requirements.
The extension also gives significant time for businesses to assess and align an ASP that meets their operational requirements. While for many organisations, this also presents an opportunity to take a closer look at their integrations and carefully understand the ability of the provider to support their existing accounting and ERP systems.
UAE E-Invoicing Penalties
Why Early Preparation Matters
The extension provides additional time for businesses to implement the necessary requirements. But for companies that are still on the fence, this becomes a final call as failure to comply with the requirements and the UAE’s e-invoicing framework may result in financial penalties, including AED 5,000 per month for implementation delays and AED 100 per invoice for non-transmission.
Final Words
The announcement of the extension reflects the UAE’s level-headed approach and pragmatism in establishing the e-invoicing framework as a stepping stone in its broader tax strategy. With countries like Saudi Arabia and India reaping the benefits of their respective e-invoicing systems, the UAE’s phased approach ensures that businesses are equipped with the right tools to ensure a streamlined transition.
The shift towards e-invoicing is a nod to the future, where the tax landscape will see the information travel faster and compliance becoming embedded in critical operations. The new framework is expected to see businesses generate standardised invoices that will drive the new reporting ecosystem forward.