Questions & Answers
Requirement of having a local partner
If the local partner/sponsor is not willing to remove himself from the company (LLC) and other partners what to change to another sponsor.
What are the solutions could be?
Dear Sir/Madam,
Please note that my response to your question will be purely from an academic point of view based on the limited preliminary information that has been provided. Therefore, it should not be treated as a legal opinion for the want of adequate knowledge and review of relevant documents when read with the applicable laws.
According to Article 10(1) of Federal Law No.2 of 2015 in the UAE, 51% of the share capital of the company must be owned by UAE national(s) or a company wholly owned by UAE national(s). Article 10(3) of Federal Law No.2 of 2015 further states that any transfer of title to any share of a partner that will result in distorting the percentage requirement in Article 10(1) will be considered invalid.
Therefore, we will need more information regarding the commercial arrangements made, your company structure and shareholders, and review the incorporation documents such as the Memorandum/Articles of Association and shareholder agreements before we can provide you with adequate advice on the matter.
Please call/write to us for further assistance on the matter.
