Q: I purchased a commercial shop and seller left Dubai immediately after that. There's loan with the bank in name of shop. 1. Fed Law No.18 of 1993 CL 47(1) says that the person upon whom the title to the business premises has devolved shall remain liable for the debts, if the creditors of such debts submit a statement thereof within the said prescribed period and........ 2. Clause 47 (3) says: Furthermore, the disposing party shall remain liable for the debts related to the business premises and which have arisen prior to the notification of the disposal unless he is discharged therefrom by the creditors. What is the difference between the two? Our sale agreement CL 8 says First Party (seller) bears all obligation owed by the Sold shop in favour of others including rents, wages, salaries, fees, taxes, fines .... and all other expenses related to the Shop until the date of registration of sale with the competent authority. What takes priority, sale agreement or Fed Law and who has liability for the loan?

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: I'm buying a partner visa, which means I don't have anything to do with their company. In the future, would I be held liable for whatever liabilities made by them or by the company?

Q: Hello, I am planning to buy an existing sole establishment in Dubai. I want to know how can I inquire if the existing company has any business loans? Also once I buy the company, will I be liable for payments to the existing business loans taken by the old owner?

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: Hi, I am looking to buy a 15% stake in an existing active company (mainland). What is the due diligence which I must do to ensure I am not scammed? What are the legal and economic aspects I should be aware of? Kindly assist me. Thanks in advance!

Q: Dear sir/madam, We are a commercial broker L.L.C. Company, consisting of 2 partners; local with 51% shares & foreign with 49%. We have decided to own this company 100%. Kindly let us know how will it be possible and what documents are required to get started? And what would the cost be?

Q: Dear sir/madam, I plan to take over the entire stuff of the factory, premises, and customer transmission but not the trade license. I shall be taking my own new trade license and using existing premises, equipment and workers too (by changing the visas). It is more or less like taking over all the CAPEX and headcount. The trade license has not been taken over and the factory name shall be changed. In this scenario, what type of precaution need to be taken? And what kind of purchase agreement is to be made?

Q: Hi, My UAE entity is purchasing a company in the Netherlands. The Notary has requested the following: Legal opinion (issued by a local lawyer and duly legalized/apostilled) regarding the purchaser and confirming at least: (i) The statutory name, registered address, and registration details/number of the purchaser, (ii) That the purchaser is in good standing, (iii) That the purchase of the shares of SAS84 B.V. falls within the corporate scope and objects of the purchaser, (iv) That I am authorized to solely represent the purchaser for all purposes. Can a lawyer please help?

This article intends to give a brief idea of corporate crime, how it happens in the corporate world, the relevance of choosing the right legal action and mechanism.

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.

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.