Q: Hi, I have LLC company not renewed for two years. Six months back, I tried to renew and made a new MOA to change the sponsor by paying AED 10000 to old sponsor. Later I could not renew with DED as I did not have money. Now, I want to change the MOA with a new sponsor. This time, the same old company sponsor is demanding money. Please suggest as I am struggling for money and issues with the old sponsor.

Q: I have signed 5 years ago a side agreement when forming a Dubai onshore LLC trading company, and I now realize that there is no termination clause. One clause says that the contract is signed for 10 years and that it will be renewed after 10 years. As a result, the company who provided me with the local sponsor wants to charge me a hefty "penalty" for agreeing to change the sponsor. Besides, they are holding all details (online access codes and password) to deal with the Ministry of Labor. So I have no liberty to change the sponsor unless I pay them a lot of money. I am bound with them because only they can properly cancel my employees' visas if I wanted to recreate a new company. Are such indefinite and abusive side agreements legal? Do I have any recourse to enforce a change of sponsor without paying the "penalty" they are requesting? Thanks

Q: Hi. I have technical and cleaning services company and I had a local sponsor and had renewed my licence for 3 continuous years. I have a new partner and he wants to local sponsorthe local sponsor because from the time we took from them they kept on taking money but not taking any approvals we had to wait so long to do every procedure. We decided to change the sponsor, and at first, he agreed, but now he doesn’t want to let go of the company. I’m totally stuck with such hard work and I’m clueless how to change him. I need some advice what would be the best solution for us.

Q: Good evening I am self-employed having an LLC company. I am inside the UAE and I am going through bad days because: 1) I made a huge loss due to non-payment by my client. I won the case in court and I want to file a case for recovery from the client. 2) Due to the financial case, I was not able to pay the sponsorship fee to the local partner for 2 years. He is threatening now to abscond me. How to check whether he absconded me or not? If he absconded me, then what will happen?

For entrepreneurs seeking to set up their business in the mainland jurisdiction of the UAE, this is a useful guide to know your rights and obligations.

An interview-format article covering the topic of the amendments to the company law in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.