Questions & Answers
Possibility of changing the local partner shares and profits in an LLC
Hello,
Is it possible to amend an MoA after the LLC incorporation to reduce local sponsor's shares and % profit distribution?
Is there any minimum amount for the local sponsor on shares to be held and % profit distribution?
Thank you for your reply.
Hi,
I trust you are well.
As per the UAE law, the local sponsor of a mainland company must own 51% shares legally. However, please note that the beneficial ownership of the shares may remain with the other shareholders.
This is usually governed by a Nominee Agreement with the local sponsor. Whilst on the legal documentation (trade license, MoA... etc.) the local sponsor owns 51%, the Nominee Agreement can implement alternative terms and conditions.
For further information, please contact us at our email.
