Q: Our company is registered in the UAE for the past three years, and now we want to expand our business by taking a loan or investment from a foreign company. What are the rules and regulations that keep both parties safe? Please provide us with accurate information to be safe from any future problems.

Q: Hello, I have a question regarding the legality of the following scenario: 1) UAE company 100% owned by individual "A" provides service and invoices of a foreign company of which individual "A" owns 40% share. 2) UAE company 100% owned by individual "A" provides service and invoices of a foreign company of which individual "A" is an employee (CEO, General Manager or such) and has no ownership. All transactions would be made bank to bank transfers, fully transparent, with invoices to support each transaction. The reason I am asking is that I have seen on an online forum (not run by experts) that this might be considered money laundering or illegal invoicing! Your help is much appreciated! I am trying to make sure that any future ventures I might consider are done by the book and according to UAE laws.

Q: Hello I wanted to ask if my family will send me money from Germany to the UAE, and the amount is 120,000$, what are the procedures? Can I receive them? And when can I withdraw them?

Q: We are expecting to receive an investment of around 1M from a person as part of our board meeting. The person's name is not mentioned in our trade license, he will transfer the amount to the company bank account, from his personal account. So can you please advise me, in the future will the recipient bank ask for any documents/correspondences or do we need to make any legal agreement with him as per the UAE norms? This document is only for banking purposes.

Q: My friend has been arrested by Sharjah CID for funds received from an international transfer which he has no knowledge of how he received. He has been in jail for the past 2 weeks. Even police asked 2 of his office workers to visit and visited their residence and took the laptops and other documents. Then they took hold of passports and other items they collect during the raid of these guys and let them go. What will happen next? How does he proceed? Kindly help us to get some knowledge about this.

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?

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.

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.

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.

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.

The law defines the crimes related to money laundering, commitments and the jurisdictions of the governmental authorities, and the sanctions against perpetrators of money laundering.