Questions & Answers
Questions & Answers
10 available 10 • View allSide agreement with a local partner
1
Q: Good day!
Need legal advice. Dubai-based LLC company with a local sponsor, in accordance with side agreement local partner receives an annual fee. But the company license was frozen for a long period of time and local partner was informed about it.
In this case, has the local partner a right to request to pay him annual fee even the license was frozen and there was no activity.
Thank you in advance!

Oct 11, 2016
2396
Changing the local sponsor of a sole establishment
3
Q: Hello Mrs Nikhat,
I have a Sole Establishment Licence for real estate brokerage company which is in name of a local sponsor. But I have the full POA with me.
I wanted to change my sponsor. My current visa is employment visa, General Manager, but I can add my name to the license also.
Can I change my local sponsor without the signature of my current local sponsor?
Kind regards

Feb 2, 2018
3578
Right of a partner to withdraw from partnership without fulfilling obligations

2
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?


Nov 21, 2020
1011
Can a company director transfer company assets without the consent of partners?
0
Q: Need an opinion letter regarding what are the legal rights of a 50% shareholder of a UAE company, who isn't a director.
For example, can the director transfer assets out of the company without the consent of the 50% shareholder, or without having received a POA from him?

Jul 13, 2021
5
How to remove the local sponsor of an LLC company and make it 100% ownership?
5
Q: In accordance with the new FDI law in UAE - Dubai, what is the (steps/cost/requirements/time frame) to remove the 51% shares local sponsor holder, and make it 100% foreign ownership?
Additional info for accurate answer:
- The foreign owner and the foreign manager are out of the UAE, and the only physical - available person is the PRO person.
- The local sponsor is a company with 4 partners,
So, I wonder if ALL of the partners will be required to attend physically for the procedure of the 100% foreign ownership transfer, or only the PRO and the POA person will be enough?
- The concerned company is an LLC Japanese company for water equipment trading, so it will be under the UAE cabinet positive list, right?

Aug 3, 2021
3186
Can I convert the local share contribution of a company to 100% foreign ownership?
0
Q: I am an Indian expatriate resident in Dubai and I have a mainland general trading LLC company with a 51% local sponsor (my partner visa is also on this company).
I want to convert it to 100% owned by me and my wife. An LSA agreement is not required in the case of an LLC company.
Can I still have an LSA agreement to protect the interest of the sponsor?
Alternatively, what if I give a 1% share to the sponsor, is this a kind of protection?
What happens if the sponsor dies?

Sep 7, 2021
384
جواز تنازل الموطن عن رخصة مؤسسة فردية لصالح وافد

1
س: السلام عليكم،
في المؤسسة ذات الكيان القانوني الفردي، هل يجوز للمواطن المُستخرَجة الرخصة باسمه التنازل عن ملكية المؤسسة للغير (غير مواطن) الذي يحق له انتقال كافة الحقوق القانونية عليها بموجب إقرار كتابي عرفي بين الطرفين؟


Jun 14, 2022
881
إثبات صورية شراكة كفيل إماراتي


1
س: السلام عليكم،
نحن شركة ذات مسؤولية محدودة ولدينا كفيل إماراتي صوري، ولكن بالرخصة التجارية هو شريك. هذا الكفيل صاحب أخلاق عالية ولا خوف منه ويعرف نفسه بأنه ليس بشريك فعلي.
السؤال: إذا، لا سمح الله، توفي فقد نخوض مشاكل قانونية مع عائلته، فما الحل القانوني الذي يمكن أن ننجزه معه الآن ضمانًا لحقوقنا مستقبلاً؟



Aug 16, 2022
461
Complaining against a company for establishing a civil company instead of a sole establishment

1
Q: Dear sir/madam,
Last year, I approached a company to open a UAE sole establishment for me. Instead, they opened a civil company without my knowledge and then asked me to sign MOA (Partnership Agreement) using my UAE pass without even showing the MOA (Partnership Agreement) to me.
Can I complain about this to DED?
Also, what will be the legal implications of this if I mention it to relevant authorities?


Oct 1, 2022
181
As a 51% local sponsor (LLC), can my partner force me off the license?




1
Q: As a 51% local sponsor (LLC), can my partner force me off the license?
What options does the partner have?





+1
Jan 23, 2024
249
Legal blog
7 available 7 • 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
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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
6306
Local Partner Share contribution in the UAE: What You Need to Know 65
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.
Jan 26, 2020
17667
What Can I Do If I Have a Dispute With My Joint Shareholder? 5
An interview-format article covering the topic of shareholder disputes in the UAE and pre-emptive measure to be considered. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Mar 24, 2020
5869
100% Foreign Ownership of Companies in the UAE 12
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.
Jun 13, 2021
3087
Amendments to the UAE Company Law 2
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.
May 24, 2021
733
The UAE Issues Rules for Full Foreign Ownership of Companies 0
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.
Jun 6, 2021
661
Laws & Regulations
1 available 1 • 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
29518

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My employer fired me under Article 44 for not showing up for work for 7 days in a row. But that’s not the case at all. I was sick and the management was aware and they let me go.
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How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan? 0
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On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
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Employer asking for visa reimbursement after resignation: do I need to pay? 0
Hello Sir/Madam,
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Oct 20, 2023
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