Final answer:
Under the UAE Commercial Company Law, a company is defined as a legal entity aimed at profit through commercial activities. The law provides a framework including legal entity status, limited liability, ability to raise capital, professional management, continuous existence, and ease of transferability of ownership.
Step-by-step explanation:
Under the UAE Commercial Company Law, a company is defined as an entity engaged in commercial activities with the aim of profits. In the United Arab Emirates (UAE), the legal framework for companies is structured to both integrate with the global economy and ensure adherence to stringent standards, reflecting the region's economic ambitions and social values.
The UAE Commercial Company Law, 2015, outlines various forms of company structures, such as sole proprietorships, limited liability companies (LLCs), and public joint-stock companies. The law mandates that these entities have certain key characteristics:
- Legal Entity Status: Corporations are treated as separate legal entities from their owners, capable of suing, being sued, and entering into contracts.
- Limited Liability: Shareholders' liability is typically limited to their investment in the company.
- Share Trading: Companies can raise capital by selling stock or bonds.
- Professional Management: Corporations can hire professionals to manage operations.
- Continuous Existence: Companies have an unlimited lifespan and can continue operations indefinitely, barring dissolution.
- Ownership Transferability: Share of the companies can be easily transferred, facilitating the change of ownership.
The framework set by the UAE law emphasizes economic freedom, property rights, market competition, and outlines the role of government in regulating these entities to ensure fair practices and adherence to ethical standards.