Page 54 - MOE ENGLISH PR - MAY 2024
P. 54
Press Release
The Ministry had also conducted a series of meetings with various government entities, including
chambers of commerce and industry, licensing authorities in economic development departments
and free zones to strengthen collaboration and coordination in order to streamline the registration
of family businesses in the unified registry. These efforts cater to the needs of family businesses
seeking registration and provide them with comprehensive support in this regard.
The Ministry explained that the request to register a family company in the unified registry must
be submitted to the licensing authority that issued the economic license to that company. The
application will be forwarded to the Ministry of Economy, which will then make a decision after
examining the company’s compliance with the regulations and conditions stipulated in the family
companies law and related decisions. Once the review is successfully completed, the Ministry
proceeds to register the applicant in the registry.
The Ministry further explained that as per cabinet decision No. 106 of 2023 concerning the
submission of the family charter, family businesses have the option to voluntarily register their
family charters with the Ministry. This charter encompasses specific details pertaining to the
ownership, objectives, family values, as well as mechanisms for evaluating shares and methods of
distributing profits.
The Ministry affirmed that the registration of family companies in the unified registry contributes
to enhancing business continuity through intergenerational transitions. This is particularly crucial
as the family business law governs the ownership of companies by defining their capital, how
partners can dispose of their shares and the mechanisms to relinquish them, in addition to
organizing the right to redemption and evaluation of shares and their categories and their
purchases.
-Ends -
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