Will a civil company partner remain liabile in the company if he left and his visa expired after 6 months?

Dear Inquirer

We are pleased to serve you and address your inquiries.

Obligations vary depending on the capacity only, whether it is a partner or a manager, and following the legal procedures for exiting the company.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants

Hello,

In the UAE, the partners in a civil company (especially if it's a general partnership or a similar structure) can still be held responsible for the company’s liabilities even if they leave the country unless the appropriate legal formalities are followed.

Allowing the visa to expire or relocating will not automatically remove their legal obligations under the partnership, and their name will remain tied to the company's registration until officially removed.

The MOA governs the partnership and outlines the responsibilities of each partner. If your partner’s name remains in the MOA, they will still be legally associated with the business, even if they are physically absent or their visa expires.

To officially exit, the company must submit an amendment to the MOA, removing its name from the company’s registration with the Department of Economic Development (DED) and other relevant authorities.

For further assistance, kindly share your Whatsapp number.

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

Your foreign partner will remain legally liable for the civil company's obligations even after relocating and visa expiry, as long as their name is on the Memorandum of Association.

To properly exit, they must formally amend the MoA, cancel their partnership visa, and settle all obligations before leaving. Consult with us to ensure proper handling of this situation.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will be happy to help you.

Thanks & Regards,

ABDUL WAHIED

Dear Questioner,

Thanks for your inquiry.

I understand that one of your partners, a foreign national, is planning to relocate to another country without formally exiting the partnership or removing their name from the Memorandum of Association (MOA).

I would like to clarify the legal implications of this situation under UAE law.

Legal Liabilities and Responsibilities:

Even if your partner's visa expires after six months and they are no longer residing in the UAE, they will still be legally bound by the obligations and liabilities of the civil company unless they formally exit the partnership or have their name removed from the MOA.

As long as their name remains in the MOA, they will be responsible for any legal claims, debts, taxes, and other financial obligations related to the business.

This means that your partner could remain liable for any actions, debts, or disputes arising from the company, even after they relocate unless the company’s MOA is amended to reflect their exit.

The expiration of the partner's visa does not automatically absolve them of these responsibilities.

Steps to Legally Exit the Partnership:

To legally sever their connection with the business and avoid future liabilities, your partner would need to take the following steps:

Amend the Memorandum of Association (MOA): This requires formal approval from all the partners and filing the amendment with the Department of Economic Development (DED) or the relevant authority in your jurisdiction.

Exit the Partnership: A formal exit agreement or deed of dissolution should be signed, which outlines the terms under which your partner is leaving the partnership, and ensures that all outstanding liabilities are addressed.

Ongoing Liabilities:

Until the formal exit is completed, your partner will remain liable for any future business-related liabilities, including tax obligations, legal disputes, and any financial commitments.

Therefore, it is important to ensure that the partnership is properly dissolved or that its name is officially removed from the company’s records.

Recommendations:

Formal Exit Process: I strongly advise that your partner go through the proper legal steps to remove their name from the MOA and exit the partnership officially.

Notify Authorities: Once the exit process is completed, it is important to inform the relevant authorities (e.g., DED) to update the company records.

Please feel free to reach out if you need assistance with drafting the necessary documents or if you have any other questions. I’m here to help guide you through this process.

Best regards,

Mohammed Salah

Legal Consultant

Yes, your partner will still be legally liable for the civil company's obligations, even if his partnership visa expires and he relocates to another country.

This is because his name remains on the Memorandum of Association (MOA), which is the legal document that establishes the company.

He may still be held liable for any debts or obligations incurred by the company, even if he is not actively involved in its operations.

In some cases, if the company engages in illegal activities, your partner could be held criminally liable, even if he was not directly involved.

If you need further clarification kindly share your WhatsApp number.

Hello,

As per your query, please note that in the Civil Company, the partners are equally liable as per the MOA of the company.

Please contact us by email or call.

Dear questioner

Yes, even if a partner in a civil company in the UAE relocates and their visa expires, they can still be held liable for the company's debts and obligations.

This is because their name remains on the Memorandum of Association (MoA), indicating their continued partnership.

It will be difficult to enforce or recover many legal and monetary expenses on his part as he is settled in some other country, to mitigate this risk either ask him to get exit papers formally for discontinuing the partnership.

If you need our assistance in your matter kindly share your Whatsapp number.

Yes, he will remain a partner in the company and bear all obligations and responsibilities.

If you have any other inquiries, contact us on the phone.

Your partner may still be legally liable for the civil company even if his partnership visa expires, as he remains listed in the memorandum of association unless legally removed.

For a more detailed response and guidance, feel free to contact us via WhatsApp.

If his name is not officially removed, he will still be responsible for:

- Financial obligations.

- Legal issues or disputes.

- Any accumulated tax dues or fines.

Thank you for reaching out with your query regarding your partner's legal liabilities in the event of relocating to another country.

In this scenario, your partner will remain legally tied to the civil company as per the terms outlined in the Memorandum of Association (MOA) unless the partnership is legally dissolved or amended.

The expiration of their visa does not absolve them of their legal responsibilities as a partner.

Any liabilities or obligations arising from the company's activities would still apply to them unless they formally exit the partnership through the required legal procedures in compliance with UAE laws.

To address this matter effectively, I recommend initiating the necessary steps to protect the interests of the company and its partners. This may include amending the MOA, formalizing the exit, or seeking legal recourse if required.

I would be happy to assist you with reviewing your company's MOA and guiding you through the legal procedures to ensure compliance and mitigate any potential risks.

Please feel free to reach out to me via WhatsApp or phone to discuss this further.

Best regards,

Suhail Rana