When Dubai establishing a business partnership , agreements are made between two people through contracts, performance management systems, and legal documents. One of the most important legal documents is the company's Memorandum of Association, also known as the Memorandum of Association. According to Article 125 of the UAE Civil Transactions Law, a contract is “an obligation included in the offer issued by one of the parties to the contract in which the acceptance and consent of the other party is declared in a manner that proves its effect on the contract.” This means that when an agreement is made between two people, it is considered a contract and each party is obligated to fulfill their share of it.
Seeking legal advice to write contracts:
The process of drafting the Memorandum of Association requires the knowledge, experience and skills available to a professional or legal advisor who drafts the Memorandum of Association in accordance with the applicable legal frameworks and then the company adopts and approves it. This lays the foundation for a joint partnership between two or more people.
What are the types of Articles of Association in Dubai?
There are two types of business entities: those that are granted by the state to a business owner or company, and those that have a Memorandum of Association that sets out the organization's rules and procedures. The Articles of Incorporation should include items such as: who is authorized to do what, how decisions will be made, and what is permitted to the company. Articles of incorporation must be clear and concise in order to be effective. To prove that you have correctly drafted legal contracts, they must be in writing and signed. The document must be in the form of a written agreement and must be agreed upon by both parties. In addition, it must be signed by both parties and notarized.
Articles of incorporation of companies in Dubai:
t is possible for the partners, the persons involved in the contract, to agree to make amendments to the articles of incorporation of the company. This is known as amending the "Annex to Amend the Memorandum of Association", such as changing the trade name, changing the activity, or introducing amendments to the institution or articles of association in response to changes in legislation and laws. If the new government is not in line with the agreed partnership agreements, or if the partners want to change one or more objectives of the partnership or modify the structure of the services provided by the company, they can do so through amendments to the Memorandum of Association.
Conditions for establishing companies in Dubai:
You need to know the following: General corporate terms and conditions, including name, titles, nationalities, date of birth and place of residence. The company's headquarters and branches. The capital of the company and the share of each partner in money or rights - the estimated value. How shares are deposited and when they vest. Incorporation and expiry date, if any. Management structure and names of authorized signatories on behalf of the company Results of the end of the fiscal year.
There is a variety of companies in the UAE. Companies with joint liability can be two or more partners who are jointly liable, a simple partnership company with one or more partners who are citizens of the country, or a public joint-stock company that may include five or more persons or government agencies. These companies are private and can be established by one or two legal persons or a limited liability company. The number of partners in these companies is not limited and may not exceed fifty or less than two partners.
There are different capital requirements for public and private joint stock companies in the UAE. The capital must not be less than an amount specified by the UAE government in a public joint stock company. There is no minimum capital requirement for other types of corporations, but the Articles of Incorporation must declare the amount of capital. The nationality of the partners is determined by the legal form of the company.
Partners must also be UAE nationals in order to participate in a partnership. Partnership companies, simple partnerships, sole proprietorships and industrial establishments, and companies that have a work-from-home license and a license for small and medium-sized enterprises are allowed. Foreign investors, if the investment takes the form of a company, need an Emirati partner.
It is not necessary for individual investors from the GCC countries to have an Emirati partner. The UAE legislator identified a very important issue to support the economy, as companies that take the following legal forms are required to have an Emirati partner: Sole proprietorship from the GCC countries.
Limited liability companies in Dubai:
Limited liability companies (LLCs) are companies that are owned and operated by a group of people who are all citizens of the same country. To be an LLC, you must have a minimum of five members, who must own between 30% and 70% of the company's shares. Public joint stock companies are similar to limited liability companies, but they are open to anyone who wishes to invest in them. It is also regulated by the government, which means there is a higher chance of getting your money back if something goes wrong. Finally, Private Joint Stock Companies (PJSCs) are companies that provide engineering consulting services or activities. It is usually owned by a group of people who meet specific requirements. There are also companies that need service agents, such as: the sole professional company, the civil works company that does not engage in engineering activities, the branch of a foreign company, and the branch of the free zone company, which does non-professional activities.
Steps to establish a company in Dubai:
When setting up a company, the first step is choosing the activity that the company will engage in. This is determined by looking at the word "company" and determining the most appropriate classification based on the type of corporation (limited liability, corporation, public or private corporation, private corporation, civil business), as well as the activity being identified (ie whether it is an S-company Corp, LLC, PLC, C corp). In choosing the legal form of the company, the nationality of its owners and the trade name that will be used must be taken into account. There are a number of conditions for choosing this name, which we detail below:
- The name should be free of any words that may conflict with public taste.
- The name must be subject to the legal form that the company represents.
- The company's trade name must express the company's activity.
- The name should not be similar to the name of a government entity.
- The name should not contain any divine connotations or religious expression.
- The name is not very similar to the names of other organizations, and it is easy to remember.
- The name is unlike any other existing businesses or products.
- The name is easy to remember, the pronunciation is not difficult, and it has no negative associations.
Choosing the right location:
The essential step for setting up a company in Dubai is to select the right location - one that is conducive to technological development and provides efficient means of transportation. Dubai traffic organization makes it easy to move around without having to experience congestion. The necessary licenses for incorporation can be obtained quickly and easily through the remote registration service. The Ministry of Economy is currently developing this service so that incorporation processes can be completed without leaving the office.
in Dubai is to select the right location - one that is conducive to technological development and provides efficient means of transportation. Dubai traffic organization makes it easy to move around without having to experience congestion. The necessary licenses for incorporation can be obtained quickly and easily through the remote registration service. The Ministry of Economy is currently developing this service so that incorporation processes can be completed without leaving the office.
With the professional Etqan team by your side, establishing your business is easy (commercial register - equipped offices - investor housing). Our office provides you with all the support you need to get started, from submitting an application to registering company data, choosing an activity, and renting premises
