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: 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: 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, We have created a business under LLC with a local partner. It's been two months into preparations and approximately one month ago, the partner backed out of the agreement and requested her money back of investment. Since the date of this request, she has gone on to ignore us and prior to this request it led to every action of ours has been ignored. She accepted the terms of backing out and her payment via a post-dated cheque yet the partner has continued to ignore us yet again. Now my wife and children's visa and health insurance rely on this and the current visa is due to run out. How do I confront this?

Q: Dear Sir/Madam, Can a UAE local active partner take over a company against the wishes of the other non-local partner under any circumstances? Does UAE law support this action?

Q: Hello, My partner voluntarily withdrew from our company which we established in Dubai, United Arab Emirates. We established this company on July 1, 2024. Until now, there is no income or revenue. What is the legality?

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 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.

Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.

This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.

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.

An interview-format article covering the topic of the amendments to the company law in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.