Questions & Answers
Questions & Answers
9 available 9 • View allThe precautions to be taken when investing in a setup company

1
Q: I want to get a partner visa to start some business activities. What should I be aware of?
What are the precautions to be taken if the company has already taken up some loans or there are legal issues?
Also, what points to be added in the article of association to be safe in the future?
Your advice is needed!


Feb 3, 2020
471
How to guarantee your rights before investing in a company

1
Q: Dear Sirs,
I'm looking to invest in a company by purchasing movable assets. I will not be a partner in this company, however, the company owner is offering to give a security cheque against a minimum amount to be invested in.
My questions are:
Is it feasible to get a security cheque against the amount invested? does it secure my invested money? What are other alternatives to guarantee my money invested?
Is there any minimum amount where the debt amount is due, identified, unconditional and is not less than AED 10,000 and evidenced in writing?
After then I can be able to file for a court case whenever this debtor breaches the given date?
Your response is highly appreciated,
Thank you in advance, RAFIC


Mar 20, 2021
277
Securing an investment with a proper legal instrument
2
Q: Hi,
I am about to invest with a shipping company in Dubai. I will be loaning them USD 300K, at 1.25% per month, payable monthly with the loan due back in six months (with the ability to extend to a year).
I would like to securitize this with a promissory note / Post-dated cheque / Lawyer recommended legal instrument. I am a US citizen with no company or residency in Dubai.

Oct 1, 2020
154
An Indian national took the money for investment and left to home country. What to do?
1
Q: Hello Sir,
A foreign national (party1) (Jordan) invested with an Indian national (party 2) in the UAE for business. Party 1 has a security cheque of 100,000 AED from party 2.
Party 2 sold the company to another man and left the country.
How party 1 can get money from party 2 who is currently in India (Andhra Pradesh)?

Dec 30, 2021
178
How to handle delays in interest payments from an investment company?




1
Q: Dear Sir/Madam,
An investment company in Dubai has consistently been late with almost every payment of interest due every six months.
They do not acknowledge that the payment is late, even though the certificate states that it will be paid on 10 May and 10 Nov each year from 2020 to 2025.
The longest delay so far has been 26 days, with only one payment being 2 days early. They do not answer my calls or messages.
The payment due on 10 Nov this year is still awaited as of 26 Nov. What can I do?





+4
Dec 4, 2023
115
Signing an agreement to confirm investment until the company license is issued



1
Q: Dear Sir/Madam,
I'm in the process of setting up a company, and I have an investor who will fund it. Until the company is officially formed, can I sign an agreement between myself and him as individuals to confirm his investment?
This agreement would later be replaced (rendered void) by another one between the company and the investor once the license is issued.
If this is possible, what is the correct format for such an agreement?




Dec 13, 2023
130
Any restrictions for a non-UAE citizen with a company to be a developer?



1
Q: Hello sir/madam,
I established a company in a Dubai free zone. I am not a UAE citizen and want to be a developer or invest money in Dubai real estate.
Are there any restrictions, such as terms, areas, or types of deals?




Dec 22, 2023
56
Financial firm wants to change investor contract; I disagree. What now?

1
Q: Dear Sir/Madam,
I had invested in a financial firm registered in DED. It is a secured product, and a fixed monthly return was guaranteed as per the contract. I received returns regularly from September 2021 till December 2023.
Now, somebody has complained to DED against the company for crowdfunding and using money for trading. The company is in the process of obtaining a DIFC license.
They want to change the existing secured product contract to an unsecured product in which the company is not liable for loss.
For the same, they are now forcing me to sign a new addendum to the existing contract, which I am not ready to do.
Returns have stopped since January 1st.


Jan 23, 2024
57
What is the duration/lifespan of a company that can be included in the MOA?




1
Q: Dear Lawyers,
What is the duration/lifespan of a company that can be included in the MOA?
Is it 25 years, or can it be 99 years? Which law or article governs this?





Oct 23, 2024
81
Legal blog
3 available 3 • View allLegal Aspects of Company Incorporations in the UAE 5
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.
Nov 1, 2016
3641
An Overview of the Legal Framework for Entrepreneurs in the UAE 4
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.
Mar 14, 2017
6318
ماهية الإستشارة القانونية 0
إن الاستشارات القانونية هي أحد أهم أعمال المحاماة، وقد يعتقد البعض أنه ليس من الضروري تعيين محامي متخصص لأعمالهم أو شركاتهم إلا في حال التعرض لمشاكل قانونية، إلا أن حقيق الأمر تتطلب الحذر دائمًا، فبدلًا من أن تواجه ردود أفعال غير مرغوب فيها قد تكلفك الكثير من الوقت والجهد والمال، يمكنك الحصول على استشارة قانونية أياً كانت قيمتها فلا تقارن بقيمة الخسائر المادية والمشاكل القانونية التي قد تنتج عن التصرف بدونها، ولعل كثرة القضايا والمنازعات سببها عدم أخذ الرأي القانوني من أهل الخبرة.
Jul 18, 2023
266
Laws & Regulations
3 available 3 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29527
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33004
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148361

Premium
Other answers by
177 177 answers •
View allHow to liquidate a free zone company after the death of one partner 0
I am a company owner In Shams free zone of 50 per cent share and have a partner visa. My partner was a Russian who went to Russia and died.
When I went to the free zone to cancel my visa and close the company, they have asked me to get his attested death certificate and NOC from his heirs.
The problem I am facing is his family doesn’t want to give the death certificate nor they want to give NOC. Now my resident visa validity is over and I am on fine every day.
Neither the free zone is cooperating nor the partner's family. What is the other way I can cancel my visa and close the company?
Can someone guide me, please?
Apr 19, 2021
686
How the objection of a client be dealt with after being notified for termination by DLD? 0
I have been notified by DLD that I am in breach of an off-plan sales agreement, and the developer wishes to terminate the agreement.
The date on the notice is March 9, 2021, and I received it from the developer on March 11, 2021. The notice says I have 30 days "from the date of being notified" to make the outstanding payment.
On the termination notice from DLD, a list of objections is present. One of the objections states that the developer must hand over the final SPA to me.
In this case, I have not received the final SPA from the developer. I made an objection in writing to the DLD pointing this fact out and sent it via email, and received a confirmation of the same from DLD by return e-mail on April 6, 2021.
30 days from March 9th is April 8th, or from March 11th is April 10th. Does the developer have to respond to my objection before the DLD will allow them to terminate the agreement?
In this case, will the time I have to make the payment be extended by any period?
Apr 19, 2021
1405
Opening a trustee with wife and signing a postnuptial agreement 0
I would like to open a trustee with my wife and sign a postnuptial agreement.
Apr 19, 2021
448
Closing a business while the local service agent is not reachable 0
Hi,
We have a professional services license (2 partners) + 1 local service agent registered with DED, Dubai.
The partners wish to close the business because of unavoidable circumstances. We wish to proceed with all the necessary paperwork for cancellation.
Unfortunately, the local service agent is not available. We have been trying to connect to him multiple times but have not been able to reach him.
The due date for the renewal of the company is coming up and we want to proceed with all the paperwork for cancellation prior to that.
Kindly advise us about the options if the local service agent is unavailable.
Apr 19, 2021
799
Returning to the UAE to run business after being convicted with a crime 0
Hi,
I want some information regarding my uncle. He was arrested in November 2015 and was in prison until 13 June 2016 when he was deported to Pakistan.
The reason for the arrest was that my uncle had his own business in Sharjah and he was involved in a case where his employee accused him of attacking him and other allegations. He was arrested and convicted.
He needs to reenter the country as he has his business in Sharjah but I believe he is blacklisted/banned. How can I find out if he is blacklisted/banned and how can it be removed to allow my uncle to reenter the country and take over his business?
Is there any way of helping to resolve this issue?
I know that if he enters on a visa, he could be arrested at the airport, and don’t want that to happen.
Thank you!
Apr 5, 2021
498
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