Q: 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!

Q: Hello, My name is P. I'm about to open up a company here in the UAE. However, we under the sponsorship of an Emirati. We agreed that he would give the power of attorney under the court to manage everything including bank account, bank cheques. I need advise on how best we can come with an internal agreement.

Q: Hi Mam, What is the importance of side/investment agreement for a civil company?

Q: We are 3 friends planning to start a business. One is a sleeping partner as he is working with another company. So could you please suggest to me what kind of agreement I can make to add myself legally to the company?

Sometimes this seems very simple to incorporate a company in the UAE, however, investors must seek professional advice before taking this important business decision to avoid any future legal implications.

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.

The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.

In terms of existing companies which include Emirati partner and its activities have been availed for full ownership by Foreign investors Dubai Department of Economic Development stated that those companies will remain as is without change.

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.