Questions & Answers
Protecting the foreign investor's rights when incorporating a company in the UAE
I intend to participate in a boat charter company in which I will be the de facto 100% owner and supplying a boat for its operation.
I understand that in order to be able to register the boat in the UAE and obtain the trade license, there has to be an LLC. However, to establish an LLC, a local person has to act as a 51% shareholder.
Question:
Can an MOA and AOA LEGALLY and in FULL CONFORMITY OF THE UAE LAW:
a) define a GPA to me only to sell and deal with the assets (the boat) and receive the proceeds from a sale?
b) restrict THE DIRECTORS and/or a Quorum of less than 75% of the Shareholder to sell assets (the boat) and borrow/commit the company to any financial obligations?
Goal: the 51% local shareholder and the directors should not be able to dispose of the assets without my consent, and not to borrow or lend funds against the asset (the boat).
What will be your cost setting up an LLC and drawing the appropriate documents incorporating the above?
Please advise!
Dear questioner,
Yes, we can help you to protect the assets and the Company shares and prevent the local partner from taking over the company.
1- You shall have a nominee shareholder agreement with the local partner.
2- You shall have a POA from the local partner to act on behalf of his shares.
3- You can give the assets to the company as an investment and maintain the ownership of assets.
4- Sign a trustee agreement with the company to hold any partner personally liable for any action with such assets.
Contact us to advise you about the fees, based on the required services and details of the assets and business nature.
Contact us to provide legal advice or legal services.
Taken Care & Answered by,
Mohamed Noureldin
Legal Consultant (Licensed in Dubai)
Dear Questioner,
Pursuant to the query, as you mentioned to start the business, you need the help of a local person.
So in order to protect your assets and restraining the other party to do anything on behalf of the company, you should make the agreement accordingly.
1. To start the company you can first obtain a Power of Attorney from the local person.
2. You can put a clause of liability, that the partner will be personally liable for any action done on behalf of the company.
If you need any assistance in preparing the agreement on any legal support including Maritime Law, kindly contact us via phone or email.
Thank You!
