One-person limited liability companies under the UAE law: is it time to adjust the sails?

This paper examines the legal recognition of one-person limited liability companies (OPCs) in the United Arab Emirates by analyzing the gaps and limitations that persist within the current regulatory framework. In particular, the study investigates the shortcomings that weaken creditor protection, the limited oversight mechanisms that fail to ensure sound management, and the absence of a structured role for a competent authority in the voluntary liquidation of OPCs. As such, this research paper uses descriptive and analytical methodologies to address the fundamental research question of what the law should be in order to adequately regulate this type of company. In addressing this question, the paper highlights the importance of implementing stricter management oversight, developing a comprehensive regulatory framework, and involving a competent authority in the voluntary liquidation of one-person companies. Finally, the paper concludes with a set of recommendations to strike a balance between the interests of creditors and those of the company’s owner.