Questions & Answers
Questions & Answers
4 available 4 • View allSide agreement with a local partner
1
Q: Good day!
Need legal advice. Dubai-based LLC company with a local sponsor, in accordance with side agreement local partner receives an annual fee. But the company license was frozen for a long period of time and local partner was informed about it.
In this case, has the local partner a right to request to pay him annual fee even the license was frozen and there was no activity.
Thank you in advance!

Oct 11, 2016
2431
Settlement with the local partner and closing company due to loss

1
Q: Hi,
I am having an LLC company in Abu Dhabi, started in 2013 with 51% local partner and 49% from my side.
Every year I pay AED 14000 to the local partner regardless of the profit or loss. The important point is that the local partner never invested in my firm and it was only in the notary documents (51%).
Now I want to cancel the company due to the loss and local sponsor is asking for AED 50,000 for cancellation which I don't have.
He said I can file a complaint in the police. Also, I have only the paid receipt of the local partner paid amount for the last year.
Kindly advise on the legal aspects of it.


Aug 4, 2020
1240
The legal way of changing the local partner in an LLC

2
Q: I have signed 5 years ago a side agreement when forming a Dubai onshore LLC trading company, and I now realize that there is no termination clause.
One clause says that the contract is signed for 10 years and that it will be renewed after 10 years. As a result, the company who provided me with the local sponsor wants to charge me a hefty "penalty" for agreeing to change the sponsor.
Besides, they are holding all details (online access codes and password) to deal with the Ministry of Labor. So I have no liberty to change the sponsor unless I pay them a lot of money.
I am bound with them because only they can properly cancel my employees' visas if I wanted to recreate a new company.
Are such indefinite and abusive side agreements legal?
Do I have any recourse to enforce a change of sponsor without paying the "penalty" they are requesting?
Thanks


Dec 25, 2018
1749
How to claim my share in a company from a partner who is trying to put hand on everything?




1
Q: On June 23rd, I was introduced to a gentleman through a friend to partner with on developing a new software solution.
For his end of the deal, he was to produce 45% of the software to a spec which was agreed in June, and then once it was built to that spec the company would take over payments.
The company was established Aug 23rd. In September, he started asking for payments for 50% of the costs, circa 10k Euro or development would stop. To date, I have paid almost 70k Euro to him for the development.
The software only became useable, still not to the agreed spec around 90 days ago. Since then he has been trying to get myself and my wife (jointly we own 45%) out of the company through various means.
He tried to steal the domain by accessing my personal Tasjeel account to transfer to his own but this was stopped. He is now threatening to force company closure, no refund of our money, and keep the software for himself.
What can we do?
He has used almost all my cash to date to get to this point.





+2
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