Questions & Answers
Questions & Answers
10 available 10 • View allRemoval of shareholder due to non-payment of dues
3
Q: Can an offshore RAK free zone company remove a Shareholder due to non-payment of his dues?

Apr 11, 2017
1081
Revocation of share transfer agreement by one of the shareholders
0
Q: I hold a 25% stake in a Free Zone company in Dubai, with my business partner holding a 75% share and therefore being the majority shareholder.
In April 2017, there was an agreement between myself and my partner, in which he agreed to transfer all of his shares to me. Upon this agreement, we both signed and stamped a request for transfer of shares document as well as a shareholders resolution. These documents were then submitted to the Free Zone Authority but then were subsequently withdrawn without my knowledge. As far as I was aware the documents were still being processed and I only found out about the withdrawal of the documents when I followed up with the Free Zone Authority.
The Free Zone Authority has since acknowledged that they should not have returned the documents and are trying to mediate between myself and my business partner to submit the documents again but he is refusing to do so.
I want to know what legal action I can take against my partner for his actions.

Jul 4, 2017
1195
How to structure LLC company to protect your investment

2
Q: I am in the process of setting up an LLC for tailoring shop. Is there a standard MoA in place or can I make amendments to it?
If tomorrow I have a conflict with my partner and want to change him, what is the recourse and what kind of timelines and cost am I looking at?
What are the things I should get included in the MoA to protect my investment and allow me the flexibility to change a partner with minimum damages?


Oct 23, 2017
2152
Changing the local partner in a limited liability company
1
Q: Hello,
I am looking for the sponsor change of LLC company, may I know what are the procedures?
The license will expire on 31st June.

Mar 29, 2018
1484
The procedure of changing the local partner of a company
0
Q: Hi,
We are in the process of renewing our license. However, we want to change our old local sponsor. May I know what's the process?
Thank you.

Aug 27, 2018
980
The requirement of Emirati shareholding in an LLC Company 
1
Q: Dear Miss Raluca Gatina,
We are planning to set up an LLC in Abu Dhabi. The new company shall have four Saudi nationals as shareholders - together holding 85% shares and a UAE citizen - holding the remaining 15%.
We were told by some friends in the UAE that it is mandatory for an LLC to have an Emirati citizen or a legal entity as a majority shareholder holding not less than 51% of the shares.
This requirement is for licensing and company registration purpose only while we could have a side agreement as shareholders reflecting the actual shareholding structure.
I will be grateful for your advice.
Kind regards,
P. W.

Mar 20, 2019
505
Choosing the suitable sponsor for a general trading company
0
Q: I'm going to get a license for a general trading company, my question is:
Can the sponsor be an LLC company that already has a local sponsor, or I still need to have a local sponsor?

Jan 29, 2020
430
Notarizing and legalizing the agreement of partners for a sole establishment
1
Q: I am planning to be a partner in a sole establishment license in Dubai mainland and will be a silent partner.
Is it possible to notarize the agreement of partners for a sole establishment?
Can I legalize my partnership and payment?

Jul 31, 2020
542
The legal procedures required to start a real estate firm with a partner
1
Q: Good day,
I am a Dubai-based ex-pat. I want to start a real estate firm with my co-worker. I want to know the legal procedure for the partnership and signing the document prior to opening any business for better protection for both of us.
We are friends first, future business partners later. I want to know all the things to understand better what's going to happen and how it can be done correctly. If anyone here can be a guide and explain in short, their advice would be very helpful and appreciated.
Thank you!

Jan 3, 2022
226
As a 51% local sponsor (LLC), can my partner force me off the license?




1
Q: As a 51% local sponsor (LLC), can my partner force me off the license?
What options does the partner have?





+1
Jan 23, 2024
262
Legal blog
6 available 6 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
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.
Mar 14, 2017
6328
Local Partner Share contribution in the UAE: What You Need to Know 65
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.
Jan 26, 2020
17688
Doctrine of Economic Substance in the UAE 3
The introduction of the Doctrine in the UAE brings the UAE in line with other jurisdictions that have recently issued economic substance legislation and affirms the UAE’s commitment to addressing concerns around the shifting of profits derived from certain mobile business activities to “no or nominal tax jurisdictions” without corresponding local economic activities.
Feb 4, 2020
1718
What Can I Do If I Have a Dispute With My Joint Shareholder? 5
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.
Mar 24, 2020
5898
100% Foreign Ownership of Companies in the UAE 12
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.
Jun 13, 2021
3111
Amendments to the UAE Company Law 2
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.
May 24, 2021
743
Laws & Regulations
1 available 1 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29531

Other answers by
14 14 answers •
View allHow the change of company name affects its contracts? 0
If a company changes its name under the same license, does it need to amend all the contracts entered?
Aug 22, 2017
4845
Setting up E-commerce business in Dubai 0
Hello,
We are starting a new E-commerce business based in Dubai and would like to know some of the legal requirements to set an e-commerce business. We'll be selling physical products, imported from China and targeting the UAE as our customer base.
So please if you could help us in informing what legal procedures like licensing etc should be done.
Thanks.
Sep 5, 2017
2622
Photography copyrights 0
Dear Sir,
I am a professional photographer.
I want to get my photographs protected worldwide. How is it possible? And what all documents are needed?
Many thanks
Aug 21, 2017
1036
Non-compete clauses in the employment contract 0
Dear Sir,
I'm Satheesh from Abu Dhabi. For the past 3 years, I was working for a free zone company in Dubai. Our company have clients from both Dubai and Abu Dhabi and doing medical billing services for hospitals and medical centres.
I was working with one of the company's clients which is a government hospital in Abu Dhabi (please note - govt is removing our company by Sept.).
My concern is that the hospital is interested to recruit me as their employee. But I already signed a limited contract with my company which has "Non-competition non-solicitation agreement".
My contract states that I cannot join their clients or competitors for 24 months after my visa expiry or end of service. If I violate this law they will take legal actions and they can ask for compensation (Law no. 8 of 1980 for UAE and Law no. 5 of 1985 for Dubai).
My visa is expiring by Aug 25th, so I'd like to join there.
Can I join this Abu Dhabi government hospital or not? If I join, is there any legal issue I have to face from my company?
Jul 30, 2017
10644
Responsibility of partners for bounced cheques signed by the company manager 0
Do the local sponsors have financial responsibility for bounced cheques from the company that they are sponsored?
If I got cheques but they were bounced and the person who signed the cheques (managing director) left the country. Company is in labor zone, retail, 2 operating shops.
Jul 26, 2017
15749
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