Q: Hi. Kindly advise regarding: (1) Closing a professional civil company (management consultancy) in Dubai with 4 partners + 1 local agent. There are 4 partners (all family members) who are out of the UAE. 2 partners have investor visas & 2 have partner visas. 3 visas have expired during July-Sept 18 and 1 Investor visa expiring 17/11 as being out of the country for 6 months+. Online at www.gdrfa.ae on logging in, the 3 expired visas are showing 'Inactive'. Does it mean visas are automatically cancelled & they can come on visit OR visas have to be physically cancelled at the immigration dept? The company has no assets/liability. We want to close the company. The company's labour est card is already cancelled. (2) Effect of a partner's personal credit cards' liability on the company as a he is a partner. In the above company, 2 partners have credit card dues. Is there an impact on 2 aged partners coming back to the UAE if the banks file cases & secure order on attaching the defaulting partners share in above company? (There is no business/assets). Can 2 aged partners be asked to submit the company a/cs?

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: Hi. Kindly advise regarding: (1) Closing a professional civil company (management consultancy) in Dubai with 4 partners + 1 local agent. There are 4 partners (all family members) who are out of the UAE. 2 partners have investor visas & 2 have partner visas. 3 visas have expired during July-Sept 18 and 1 Investor visa expiring 17/11 as being out of the country for 6 months+. Online at www.gdrfa.ae on logging in, the 3 expired visas are showing 'Inactive'. Does it mean visas are automatically cancelled & they can come on visit OR visas have to be physically cancelled at the immigration dept? The company has no assets/liability. We want to close the company. The company's labour est card is already cancelled. (2) Effect of a partner's personal credit cards' liability on the company as a he is a partner. In the above company, 2 partners have credit card dues. Is there an impact on 2 aged partners coming back to the UAE if the banks file cases & secure order on attaching the defaulting partners share in above company? (There is no business/assets). Can the 2 partners be harassed in UAE?

Q: Hi, I have an LLC company here in the UAE. Due to financial difficulties, I am not able to run it further. Hence I have decided to shut down the company. I want to check how much notice do I need to give to the employees. All the employees are on limited contracts. Can I issue a 30 day-notice period letter to them for operations closure? I will give the salary to them till the last day of their service and will also provide them with airfare to get back to their home countries after visa cancellation. Also, I want to write in the notice period letter that if at all I find any suitable buyer for the company, the company shall continue under the new buyer's name. But if no suitable buyer is found till the notice period ending, I shall liquidate the company. Kindly advise on the legal complications involved in this!

Q: sir, I am residing in Kuwait. One of my wife's friends cheated me with a cheque of RAK Bank, Sharjah of a sum of 120,000 Dirhams which he owed me in 2018. He was running a general trading company. There is also another cheque of commercial bank of Dubai with a sum of 150,000 dirhams. He closed down the company by the end of 2016. When I ask him regarding the money, he tells me that he doesn't have the money now and whenever he has, he will give me. Both cheques are without specified dates. As I am staying in Kuwait, I don't have an account in Dubai. I did not present these cheques to banks as I don't have an account and also if I present them, I won't be having any evidence if the banks keep them. Which way can I proceed as this guy cheated me? Kindly advise! Thanks! M.T.

Q: I didn't renew my trade license for 2 years and it's expired. I need to vacate my company office for which I have a pending rent of 4 months. Can I give a notice to vacate the office to real estate immediately as we don't have a business and the income is zero? The rental agreement is not also renewed since May 2020. Kindly advice!

Q: Dear sir / Madam, We are two partners who started a UAQ Freezone company with a general trading license last year. As per the current market conditions, we are not in a position to carry out any business operations here. We have decided to liquidate the company. We don't have any liabilities. Please advise us of the procedure. Currently, we are in Oman and having a valid UAE investor visa till 2020 Dec. Thank you!

Q: I posted a question about closing a large business ($400.000) loan for our Florida start-up company to be manufacturing. We were told: "... partners who reside in countries with travel restrictions or medical conditions will be represented by the UAE central bank legalization officer who shall oversee the entire process in their absence in line with UAE COVID-19 safety measures. Furthermore, you the beneficiary is expected to take full responsibility for the legalization cost of all documentation to be used in this transaction at the Dubai magistrate court with the assistance of the UAE central bank official who shall represent you in the entire process of this transaction." The quoted fee was $6,800 to be paid in advance or at closing if we attend personally. Does this sound like a legitimate procedure for using an agent to sign loan documents? How can we conduct due diligence on this investment firm based in Kuwait to be sure we are dealing with the actual company? Thanks.

س: السلام عليكم، أرجو أن تمدوني بمعلومات حول غلق المحل التجاري. وشكرًا!

Q: I am a 50% shareholder in a company at RAKEZ, and the 50% shareholder is my partner who has left the country and will not return. I cannot run the company alone. Next month the company is due for renewal, the expenses of which I cannot afford. I want to close the company. RAKEZ people say file a case and bring court papers to close the company. Where can I go, what should I do, can I get help? I do a small job in the shop.

Q: Good Morning, I want to close my company (an LLC located in Sharjah) and leave. I have personal and company liabilities which I plan to settle before I leave. My company license ended in December 2024. Can I pay off personal debts and company liabilities without renewing the company license (including renewal of tenancy contract) in the next 2 to 3 months? I want to avoid license renewal fees and tenancy contract associated costs since I am anyways planning to leave. Is that possible? If so, how much time do I have? Thanks for your advice.

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.

The Emirate of Dubai has announced recently some government fee waivers as a part of its relentless pursuit to maintain an investor-friendly environment and keep providing incentives which you can rarely find anywhere else.

With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.

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.