Q: My brother has a contracting company (LLC) made in 2014. Now he doesn't have money and wants to cancel the company. The local sponsor is a girl (whom my brother never met) dealing on behalf of her husband, he is from Pakistan. As per the MOA, the sponsor is eligible to take sponsorship only for one year (2014). He forcefully took money from my brother for 2015 & 2016 which is not due and requested my brother to issue one visa for his cousin. But later on, my brother knew that he sold the visa for 15k & he again asked him to issue another visa but my brother refused. Since then, that person is making drama, mental torture & ruin his company. He didn't give a labour card to my brother for an employee to make him an absconder & get cancelled. He even called the employee to make a court case against the company. Now, we called him to come to sign on cancelling the company but he is illegally asking for the remaining years of sponsorship. My brother told him he inquired at the economic dept. and the local is eligible only for one-year sponsorship which is already taken & the money of sold visa will adjust the 15k.

Q: Hi. I have technical and cleaning services company and I had a local sponsor and had renewed my licence for 3 continuous years. I have a new partner and he wants to local sponsorthe local sponsor because from the time we took from them they kept on taking money but not taking any approvals we had to wait so long to do every procedure. We decided to change the sponsor, and at first, he agreed, but now he doesn’t want to let go of the company. I’m totally stuck with such hard work and I’m clueless how to change him. I need some advice what would be the best solution for us.

Q: Hi Sir, I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company. We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss. They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money. Now, I need to get out of this mess as I was not involved and they were not sharing any updated records. Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors. I am afraid to come to Dubai to discuss as the company sponsor is in touch with them. They can put me in trouble in order to get my share. Please advise!

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.

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.

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.

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.

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.

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.