Q: Hello I’m a business partner who just decided to exit the partnership with three more partners. It’s a recruitment agency. I want to know what is the best right way of getting my share from the business in terms of the company’s valuation and current billing.

Q: Hi Ms. Rajasree, Good Day! I was a resident of the UAE. Last year, I moved to Germany (since Sep 2020) handing over my partnership rights to my partner at the Al Twar court notary premises (Qusais). However, off late, I did find that the partner is in a big mess and he hasn't primarily paid any rentals ever since my exit; also hasn't taken my name from the trade license with the Dubai economic development. Now all the payment dues (and other related company issues) are also reflected in my name and the court has also issued a verdict (via RDC) to our company which now implies to me too (since my name wasn't taken out). Our company is an LLC company. So my questions to you are: 1) Is there a process to take my name off. from the trade license if I approach the court and explain as I wasn't a part of this by any means as already I have the originals of the partner's amendment signed? 2) If so, for appointing a legal entity, how could I execute a POA from Germany to a legal firm in Dubai?

Q: I wish to part ways with my business partner in a free company in Dubai. The business is profitable. There is no breach of law. We just do work together and I want to offer my partner an exit from the LLC. I am the appointed business director. I manage the business personally. On grounds of incompetence and personal differences, I wish to offer her a sum and get the partnership solved. What are my options and how does one evaluate the share to be dissolved fairly. Like is there a formula such as a multiple of net profits to be offered? Thank you!

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.

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.

It is the second 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 UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on Corporate Governance for Non-listed companies.

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.