Q: I hold a professional trade license with a 15% local partner. However, I have closed the company in early 2019 and have not renewed the trade license for the past two years. The business was not good and hence I did not pay the sponsor fees for two and a half years. I want to close the company officially and also cancel all the visas linked to the company. The local sponsor is not cooperating and he is asking for the past three years' sponsor fees, which I don't have. Please guide me on how to cancel and return to India without any legal hassle with the local sponsor. 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, 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, I have a 6-month-old RAK FZ-LLC company with 2 shareholders. I hold 60% and also I am the UBO (ultimate beneficial owner) of the company with all rights to remove shareholders. I would like to know if I can remove the shareholder holding 40% shares. Please advise. Thanks!

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 have a business dispute with my partner in a civil company. My share in the company is 25%, partner's share is 70%, and local share is 5%. I have an employee manager visa. Is it possible for my partner or the local to abscond or do any ban on me? And if the company visa is not renewed, would I get automatically canceled or not? Please let me know with your expertise!

Q: Dear sir/madam, My father is a 5% partner. He has moved back to his hometown and I, his son, 95% partner wish to remove him. Can I remove him while he is out of Dubai?

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: Dear Sir/Madam, I am a partner in a civil partnership, holding 33%, while the others hold 33% and 34% respectively. We want to dismiss one of the partners as we have discovered that she has been embezzling accounts, treating staff unfairly, and withholding financial records. What is the process to dismiss this person if she is not willing to resign? Myself and one of the partners with 34% ownership are in agreement about the dismissal of the third partner.

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.

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.

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.

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.