Q: I started a business with a partner (50/50 shares) who is managing the business, supported by my contributions to marketing and operations. After 1 year of business, I'm still not getting clarity concerning the collections and payments, etc. Money is often collected by my partner in cash mode instead of the bank. My partner keeps saying stay away from this and just focus on marketing and operation. Now I have decided to quit this business, but since there is no proper account, I'm not sure how much I should sell my 50% shares for. Kindly advise me on how can I come out of this business and how much I should sell my shares for!

Q: Assalamu Alaikum We are 4 partners in a business and one of the partners wants to sell his shares to two existing partners in the business without the consent of the 4th partner. There is no provision made in the MoA regarding the sale/transfer of shares. So can this be done without violating any law in the UAE? Thanks

Q: There are few things I want to find out: 1. How to get background verification, legal check of any open/ongoing cases and financial liability check on a person and a business registered in Dubai, UAE? 2. If I have to enter into a new partnership on an existing trade license, do I become liable for any old existing liability/case on the older trade license? 3. Where can I find all the rules that I have to follow as a business owner and employer towards staff like mechanics, etc.?

Q: Dear Sir/Madam, We purchased an LLC company in 2018 for 300,000 dirhams. We invested an additional 200,000 dirhams, and I granted full executive power to the Managing Director in the memorandum of understanding, including the authority to buy, sell, and manage the company. However, the Managing Director recently sold the shop to another company without my knowledge or consent. We are four partners: the local partner holds a 51% stake with an 85,000 dirham investment, the Managing Director holds a 17% stake with an 80,000 dirham investment, the third partner holds a 16% stake with an 80,000 dirham investment, and I hold the remaining 16% stake with an 80,000 dirham investment. The problem is that the partners are now claiming that the company is losing money and cannot afford to pay rent or renew its license. However, I managed the shop until 2023 and calculated the profits every month. I received my share of the profits, and the other partners also received their share. However, when I went on vacation, they started claiming that the company was making losses and stopped paying me my share of the profits. I know that they sold the shop and received 120,000 dirhams, but they are still lying to me and refusing to pay me my share. I have requested the account statements for the past 11 months, but they have refused to provide them to me. Please advise me on my legal options!

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.

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.

Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.

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 Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law, known as the "Bankruptcy Law" governs Financial Restructuring and Bankruptcy regulations in the United Arab Emirates