Q: Can a Bahraini citizen be my local sponsor in the UAE? I have a Bahraini partner who will own 51% of an LLC company to be established in Abu Dhabi. Will this be sufficient or I will still need an Emirati citizen?

Q: If the local partner/sponsor is not willing to remove himself from the company (LLC) and other partners what to change to another sponsor. What are the solutions could be?

Q: I am in the process of setting up an LLC for tailoring shop. Is there a standard MoA in place or can I make amendments to it? If tomorrow I have a conflict with my partner and want to change him, what is the recourse and what kind of timelines and cost am I looking at? What are the things I should get included in the MoA to protect my investment and allow me the flexibility to change a partner with minimum damages?

Q: Dear Miss Raluca Gatina, We are planning to set up an LLC in Abu Dhabi. The new company shall have four Saudi nationals as shareholders - together holding 85% shares and a UAE citizen - holding the remaining 15%. We were told by some friends in the UAE that it is mandatory for an LLC to have an Emirati citizen or a legal entity as a majority shareholder holding not less than 51% of the shares. This requirement is for licensing and company registration purpose only while we could have a side agreement as shareholders reflecting the actual shareholding structure. I will be grateful for your advice. Kind regards, P. W.

Q: I'm going to get a license for a general trading company, my question is: Can the sponsor be an LLC company that already has a local sponsor, or I still need to have a local sponsor?

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: Dear sir/madam, Can I make an Emirati shareholder an employee of my company to comply with the Emiratisation rule? If so, how can I do it? Do I need to make an employment contract for them?

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.

For entrepreneurs seeking to set up their business in the mainland jurisdiction of the UAE, this is a useful guide to know your rights and obligations.

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.

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

In terms of existing companies which include Emirati partner and its activities have been availed for full ownership by Foreign investors Dubai Department of Economic Development stated that those companies will remain as is without change.

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.