Q: Is a side agreement considered a valid enough document to protect my company? I own a car rental company and, by law, I was told it has to be an LLC, so I brought a partner who is really a nice guy. I want to protect my business as I am the full owner and all the assets are mine; including the luxury cars, etc. I only give the sponsor a fee yearly. I’m worried if something ever happened to my sponsor, God forbids, what will happen? Can any of his family try to take his share even though the 100% company is funded and run by me but his share is 51% on papers only? Is the side agreement valid? Is there anything I can do to protect my whole 100%? Are there any documents I can make or use?

Q: Hello there, I want to open an LLC company in Abu Dhabi with 2 GCC nationals (each one of them with 50% shares) among 2 GCC. I want to make one person from the GCC a manager as well. Is it possible? Is it allowed to open LLC company without UAE local partner?

Q: My name is O., and I'm interested in establishing a company with 2 other partners, one is a local from Dubai.

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.

Sometimes this seems very simple to incorporate a company in the UAE, however, investors must seek professional advice before taking this important business decision to avoid any future legal implications.

An interview-format article covering the topic of the new amendments to the laws in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.