Q: Hi. I have technical and cleaning services company and I had a local sponsor and had renewed my licence for 3 continuous years. I have a new partner and he wants to local sponsorthe local sponsor because from the time we took from them they kept on taking money but not taking any approvals we had to wait so long to do every procedure. We decided to change the sponsor, and at first, he agreed, but now he doesn’t want to let go of the company. I’m totally stuck with such hard work and I’m clueless how to change him. I need some advice what would be the best solution for us.

Q: Hi, I have LLC company not renewed for two years. Six months back, I tried to renew and made a new MOA to change the sponsor by paying AED 10000 to old sponsor. Later I could not renew with DED as I did not have money. Now, I want to change the MOA with a new sponsor. This time, the same old company sponsor is demanding money. Please suggest as I am struggling for money and issues with the old sponsor.

Q: 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?

Q: I have opened a restaurant. Due to some issues, I had to add my local sponsor as a partner. Now, the shares are like 64% for him and 36% for me on records. Profit share is 50-50. He is claiming that he has lost his government job due to this high percentage of partnership in the restaurant. He needs a large amount of money every month which I cannot afford right now. Is there any way that I get any assistance of law in this situation?

Q: Hi, I'm an auto garage owner in Al Quoz 4 and planning to relocate my garage business to Al Quoz 1. I have a local sponsor currently but planning to cancel him and make the new landlord my sponsor. Is it risky to make your landlord your sponsor & what are the things I have to ensure before taking this decision?

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.

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.

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.

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.