أسئلة وأجوبة
Can I start a new company aside my failing partnership business without being sued for competition?
I currently have a company in the UAE with my partner.
My partner hasn't been working or contributing to the company for the past year and is very difficult to deal with.
I'm no longer able to work with him - my option is to start another similar company on the side, as dissolving the existing company or selling/buying each other's shares doesn't seem viable.
Am I able to start another company in the same line of business on the side, without any risk of a civil case?
Please note that We don't have any NDA or NOC agreement signed between us, and the MOU has no clause about non-competition.
We are pleased to respond to your consultation.
I cannot provide specific legal advice without knowing your company details and location accurately.
However, I can provide some information:
There is no comprehensive federal law regulating non-competition in the UAE. Laws relating to non-competition vary from emirate to emirate.
If there is no non-competition agreement or no non-competition clause in the MOU, you may have the right to start a new company in the same business.
However, this may depend on other factors such as:
- The nature of your work and the confidentiality of the information you have.
- Your behavior and actions during your period of work with your partner.
- Applicable laws and regulations in the emirate where your company is located.
For further inquiries about your topic, you can reach our office or contact us on WhatsApp.
Dear F.,
Thanks for your inquiry.
Regarding the above, we would like to inform you that, according to UAE law, starting a new company in the same line of business as your existing company without the consent of your partner may be considered a breach of fiduciary duty and could potentially lead to a civil case.
It is important to consult with a legal professional to fully understand your rights and obligations in this situation.
Additionally, even if there is no NDA or non-compete clause in your MOU, there may still be other legal implications to consider.
It is always best to have a clear and comprehensive agreement in place to avoid any potential conflicts in the future.
Kindly do not hesitate to contact us by phone or email.
Greetings
The situation seems to be a little bit complex.
Even if you are not able to work with them, there should be a proper agreement in order to start another company in the same line of business in the form of NOC from the other partner.
Or you should follow a proper arrangement to relieve from the existing company. Then there won't be any complications when you start the new company.
If you need further clarification we will discuss more about this issue in detail. Kindly share your WhatsApp number in order to proceed.
