Questions & Answers
How can I hire people for my startup against equity shares instead of salary?
I have a startup in Dubai. I have people interested in working on my project but at the moment I don't have enough activity or the capability to pay full-time salaries.
They are willing to work and get compensated via equity share options calculated based on the hours they worked.
They can be in Dubai or working remotely in other countries. Some could dedicate 20 hours/week regularly, others do one-off or occasional contributions.
What would be the best approach to be legally covered?
Dear Client,
Thanks for your question, I hope you are doing well. I will definitely assist you in this matter.
To legally compensate part-time or occasional contributors to your Dubai startup with equity share options, consult with us to understand UAE laws.
Draft a clear equity agreement specifying terms, vesting periods, and percentages.
Ensure your business structure allows equity issuance to non-full-time workers, maintain records, address remote worker tax implications, and include dispute resolution mechanisms.
Stay updated on UAE regulations and seek legal guidance to tailor your equity compensation plan for compliance and customization.
For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.
We will definitely be happy to help you.
Thanks & Regards
ABDUL WAHIED
You can follow either of the options
1. Put a vesting period, in which the employee would not get full equity shares immediately but can make an agreement from 2 to 4 years
2. Performance vesting schedule, here you are not required to give shares according to the hours of work but on their performance
Whichever the option, you are required to put an agreement with clearly outlined terms.
The best approach to be legally covered would be to enter into a formal agreement with each of the individuals that you are working with.
This agreement should include the terms of the equity share options, the hours they will be working, and any other relevant details.
It should also include a clause that states that the agreement is subject to the laws of the United Arab Emirates.
Additionally, you should ensure that you are compliant with all relevant UAE laws and regulations, including those related to employment and taxation.
You can reach us by phone (WhatsApp available ) for more information.
