Q: We started a company in 2011 in JLT Dubai with X and Y as shareholders registered in the Memorandum of Association "MoA". The MoA and trade license confirm me as a manager and authorised signatory. In 2015, shareholder X gave me a letter signed by him on company letterhead, granting me 15% of the company shares. Q 1. Is this adequate to protect my interests? Q 2. I would like to get this letter notarized. Will this help my case further? What documents are required for this?

Q: Hi, I'm starting a food import company in mainland UAE where my Emirati partner (a close friend) will have 20% and I will have 80%. We're gonna take care of the company creation in DED and trade license application. At which stage are we supposed to draft the ''side agreement'' and sign the power of attorney? Can we create a company where I will have 49% of the shares and register it with DED and then draft the side agreement (80% - 20%) and power of attorney in a second step? Thank you

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: I am a small investor who wants to establish an advanced manufacturing factory in Abu Dhabi. I have another investor outside the country who is willing to invest USD 50 million as a JV between our companies. What is the correct and legal way or steps in order to sign the agreement with the investor and start receiving the investment funds in our bank account so we can start building the factory, hiring, buying the machines, and starting with the project?

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

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.

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

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.