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: Hi, I am planning to buy an existing active company, 13 yrs old, but I foresee legal issues/hidden liabilities later. How can I best safeguard myself? What measures need to be taken before the transfer? Please advice!

Q: Before 2 years, I gave a loan to the owner of an advertising company. He was getting an order of advertising on a 2-3 month credit basis. However, he did not have the cash amount to pay the suppliers; hence, I gave him a loan against a share of transaction profit. Against my cash cheque, he was giving me 2-3 month post-dated cheque for the amount value of cash paid + the profit. Things went well until the very last cheque bounced with an amount value of AED 80,000. Further, I gave the same owner but under a different company (gym business) AED 100,000 to purchase new gym equipment. He gives me rent of 3K per month until 6 months and after that, he pays me 114K to own the gym equipment. Only 2 x 3K cheque cleared but the rest bounced. Now, I'm left with 80K cheque from the advertising company, 3 x 3K from the gym company, 100K from the gym company, 14K from the gym company. Can I legally proceed and successfully get my money back? What are the procedures and how much will it cost? Thanks

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.

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.

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.