Q: 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.

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: I am a partner in an LLC company in the UAE. I am in India now and do not wish to continue association with the company there. I have told my partner to take over the company and remove my name from the license, but my partner is insisting that I visit the UAE to transfer the business to his name. Kindly advise!

Q: Hello, I need to shut down my partnership in Dubai. I am a minor partner in it with 10% of ownership. The major holder was not located in the UAE so without his approval, can I remove my name from the license?

Q: Hi, I hope someone can give clarity to my situation. My tenancy contract in Sharjah expired last Feb 2022 but we were unable to renew due to financial difficulties. We stayed in the same flat and in Aug, we received a notice from Sharjah Municipality regarding a case filed against me for non-payment of rent. We went to the real estate office, paid a certain amount of what we had, and they assured us we can continue to stay in the flat so long as we pay the full amount by Dec. After a month, Municipality came and evicted us from the flat. We submitted a request and we were granted by the judge 1 week to take our things and move out. My question is since I already have an existing rental dispute case but I don't have a current contract, how can I cancel our SEWA connection after moving out? I understand that the case will continue to be active until I pay in full the amount stated in the dispute case, but will I be able to cancel my existing SEWA connection in this situation? Please help!

Q: Hi, I am a partner and manager in an LLC company. However, the share in my name is not mine (it belongs to another investor). I have resigned from the company. The other partner has not removed my name from the license or returned the shares. Do I have any legal means to remove myself from this license?

Q: Hi, I was part of a trading license that was used only for the visas of two partners, with no business activity. Now, the license is about to expire, and I need to close the company. The parents of the deceased partner are not cooperating, and the second partner is also not interested. Please help me understand how I can close this company, as one partner is dead and the other is not interested. I am left alone in this situation. What will happen if I don’t renew the license, and how can I get it canceled? Thanks!

Q: Hello, Can I transfer an expired Dubai mainland license to another person?

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.

It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.

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.