How to change the lease contract for an entity that changed from sole establishment to LLC?

Greetings.

It does not affect only the conclusion of a lease contract addendum and a statement that the establishment has become a company, an amendment to the lessee clause only with the same previous conditions because the legal entity is already established, and we are honored to assist you in the matter and provide legal support.

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Hi,

The existing lease agreement does not automatically transfer from the sole establishment to the newly formed LLC.

The lease is typically tied to the original entity (the sole establishment), creating a new lease agreement between the landlord and the LLC, effectively replacing the original lease, and formally assigning the lease to the LLC with the landlord's consent.

The sole establishment would need to be released from its obligations under the lease.

For further assistance, drop your WhatsApp number.

According to UAE law, when a sole establishment is converted into an LLC, the existing lease agreement with the sole establishment as the tenant will be terminated.

This is because the LLC is considered a separate legal entity from the sole establishment and therefore, cannot continue with the same lease agreement.

Any contracts signed under the name of the sole proprietorship remain under that designation.

Dear questioner,

You will have to amend the lease agreement.

Please check the terms and conditions of the agreement and notify the landlord of your change.

Good morning, and thank you for reaching out with your query!

When a sole establishment is converted into an LLC, the existing lease agreement typically remains in place, but it may require an amendment or a novation agreement to reflect the change in the legal entity.

This ensures that the LLC, as the new tenant, assumes all rights and obligations under the lease. It's essential to review the terms of the lease and coordinate with the landlord to make the necessary adjustments.

I can assist you with reviewing the lease agreement and drafting the required documentation to ensure a smooth transition.

Please feel free to reach out to me directly through WhatsApp or phone at [-------], or via email at [-------] to discuss this matter further.

Best regards,

Suhail Rana