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The applicable law on a case filed by a company registered with a civil license

I have a professional company with a civil license. It is formulated as per the UAE civil transactions law and special artisan act of Dubai. I have a court case in Dubai courts and it was registered as a commercial case. There are some differences between the commercial company law and civil transactions law.

For example, a partner of a commercial company cannot make agreements and contracts with any family relative without the approval of all partners, but the civil transactions law does not mention any such restriction and only states that a partner can give work to anybody.

Which law is applicable to a civil company in a commercial case?

Is there any advantage or difference in requesting the court to re-file this case as a civil case since the company has been formulated under civil transactions law?

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Abdulhamid Yousuf Albulooshi Advocates & Legal Consultants
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3 Jun 2020, 11:43

Companies in general, in the United Arab Emirates, are subject to the commercial transactions law, as their activity is commercial and has acquired the status of commercial.

The commercial transactions law applies to it and the civil transactions law applies to it in the absence of a special provision in the commercial transactions law.

Therefore, a civil case cannot be registered.

Kindly contact us via phone or email for further assistance.

Thank you!

4 Jun 2020, 07:19

Thank you!

My question was:

Is UAE commercial companies law applicable to a professional company with a civil license from DED (Not an LLC)?

The civil partnership company is not defined in the commercial companies law. It is defined as a "partnership" in the UAE civil transactions law.

MIO Law Firm (Abu Baker Salem Advocates & Legal Consultants)
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29 Jun 2020, 08:51

Hello,

It seems that you have already filed the case. However, you must keep in mind that the applicability of the law depends on the circumstances on which it arises.

The commercial law existed from both civil transaction law and civil procedures law and other misc laws. There are no advantages or disadvantages of any statutes or Law.

They are made for different and specific purposes. It depends upon the lawyer, how to present the case to the court. Every law has its own perspectives and it depends upon evidence to prove to the court the merit of the case with the cause of action.

A case cannot be filed two times in the court with the same cause of action or with the same facts and circumstances. The court maintains it as res judicata and may cancel it. You have to make proper arrangements and ask the lawyer to do it accordingly.

Please contact us via phone or email.

29 Jun 2020, 10:09

Thank you for your response. I understand and agree with your comments

I found out that my civil company with a professional license from DED is formed under local order 63 of 1991.

That order states that commercial transaction law and commercial companies law do not apply to a civil company.

So even though my case has been registered as a commercial case, I will request the honorable court to apply civil laws and not the commercial companies law.

However, I also read somewhere that the honorable court has the power to declare that a company with a civil license is actually a commercial company.

29 Jun 2020, 10:44

Yes!

We have answered you regarding your earlier query that the court can consider it as a commercial company but the lawyer needs to show it.

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