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
2407
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
1198
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
1709
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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Can I file for mutual divorce from Dubai as an Indian resident and my husband works in Saudi? 0
Needed to know if I am eligible to file for mutual divorce as an Indian expat living in Dubai and holding an Indian passport and also have Canadian PR.
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My cousin has multiple penal judgments of fine and jail. How will this be calculated? 0
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What are my options after my rental renewal offer and deposit was rejected by the owner? 0
Hello,
I submitted an offer and deposit through the trustee office, but the owner rejected it. What is the next step?
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View allCan I file for mutual divorce from Dubai as an Indian resident and my husband works in Saudi? 0
Needed to know if I am eligible to file for mutual divorce as an Indian expat living in Dubai and holding an Indian passport and also have Canadian PR.
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What are my rights?
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My cousin has multiple penal judgments of fine and jail. How will this be calculated? 0
My cousin is in the central jail of Al Awir since October 2024 till date 20/03/25. She has 6 different penal cases all judgements are done, last one was done yesterday.
In total, she has a fine of about 135000, 1 month in jail, and deportation in 1 case.
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Does a cheque bounce effect my AECB score ? Is there a policy for this? 0
Does a cheque bounce affect my AECB score?
Is there a policy for this?
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What are my options after my rental renewal offer and deposit was rejected by the owner? 0
Hello,
I submitted an offer and deposit through the trustee office, but the owner rejected it. What is the next step?
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How can I cancel my visa and POA for financial matters if I have a travel ban for company bounced cheque? 0
I am seeking urgent guidance regarding my current visa status in the UAE. I was previously employed by a company that has now shut down, but my visa is still under that company.
During my tenure, I held Power of Attorney (POA) for all financial matters. However, after a cheque issued by the company bounced, the owner revoked my POA without my knowledge.
The company officially closed last year, and the owner (a lady) has been missing since the case emerged.
No one from the company is responding, and I am currently stuck in Dubai due to a travel ban imposed on me related to this case.
I need clarification on the following points:
How can I cancel my existing visa under this closed company?
Will I be able to obtain a new visa under another company despite the travel ban?
Are there any legal blocks or restrictions affecting my visa or employment options?
What legal steps can I take to resolve this situation?
I would appreciate your guidance on the next steps and any possible solutions.
Mar 20, 2025
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