Q: Hi. I would like to file for bankruptcy for one of my mainland LLC companies under the new bankruptcy law in the UAE and would like to connect with law firms that provide this service. For the first meeting with such law firms, I am looking for free consultation only. Thanks.

Q: Dear Sir/ Madam, I am a 50% shareholder in an Ajman Free Zone Company. I would like to cancel the licence and close the company as it's contracts have expired. The company has no outstanding debts and owes no money to any third parties. However, it does have some small internal loans taken by directors. In this instance, can the company be closed if an arrangement between directors is agreed to and formally documented?  

Q: I have co-founded a UAQ FZ this year and I am in a dispute with my co-founder. We had several discussions on discontinuing the partnership after our license expires. I had an uneven share of responsibilities and have voiced this for a while, even to our advisor during mediation sessions. We built our community, social media, and email database together. I said we should leave with the partners we brought in and go our separate ways once our license expired. All costs for the business have been paid equally. With few months left of our license, my partner blocked me from my email and access to our database. The domain and email are in his name, and he is holding these as a hostage even though I am 49% owner. I understand he is 51% owner and manager, but does he has the right to do this and hold the company domain and email under his account? He is abusing his role as a manager and domain owner, and I wanted to know what my legal rights are here as co-owner.

Q: Hello, Our customer has gone into liquidation, and we are shipping goods to Saudi Arabia. We have stopped the shipment and requested payment of their outstanding balance. How can we request to take ownership of their goods to sell in order to recover our outstanding invoices? Is this possible in Dubai Courts?

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.

Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.