General Partnership Company is also known as Joint Liability Company. A General Partnership Company is a legal agreement created between partners (two or more) that make them liable to bear the liability of the company jointly or severally to the extent of their personal wealth. Shares of this business form are not negotiable certificates. In UAE, foreigners cannot form any General Partnership Company, only UAE nationals have the right to do so.

Name of the company should be selected in such a way that it contains the names of every partner or one or more partners; few words can be added to give it a company name. All partners forming this partnership agreement have the right to make administrative and managerial decisions until and unless it is specified anywhere in General Partnership agreement. A third party can be appointed to look after the management of the company with the consent of all partners. Every partner in a general partnership possesses the right of commencing the business, thus, if any one of the partner gets bankrupt that leads to the bankruptcy of the whole company.

Limited Share Partnership Company or Simple Commandite or Simple Liability Partnerships is a type of partnership where two types of partners work. First, Active Partners are those who actively take part in the managerial decisions and administration of the company. Second, Silent Partners are those who do not take part in any managerial activity, they just make the monetary contribution in the business. Active partners are fully liable to the extent of their personal wealth whereas a Silent partner is just liable to the amount invested by him in the business. In case, the silent partner starts his own project under the name of the Limited Share Partnership Company, then he is liable to the full extent for the obligations emerging out of the project started by him.

Simple Liability Partnerships can have commercial registration in UAE, only if general partners have UAE nationality (citizens), foreigners can work as silent partners. The minimum share capital of 500,000 AED is required for establishing a Limited Share Partnership Company setup in UAE. Name of the company should be chosen in such a manner that should possess the name of all partners with a title describing the nature of the business. If you are worried how to start a company in UAE with so many legal complications, we the Helpline Group members can assist you about how to do business in UAE without any trouble, as we have sound legal knowledge about documentation work and can help you throughout your journey.

Holding Companies in UAE can be established by foreign investors or by nationals of the country with the aim to take part in ownership or capture assets of other companies. Holding company has the legal identity in UAE and it can be incorporated in any of the seven emirates of UAE. For Holding company formation in UAE, a proper board management should be appointed or the minimum of one Board of Director, for regulating and controlling the activities of the company.

A Holding Company may have its subsidiary units in the country under the managerial supervision of management authorities. Holding Company can be formed in different forms of business structure like Closed Shareholding Company or, Single Proprietorship Company or With Limited Liability. Business activities like manufacturing goods or providing services cannot be performed under the holding company.

Public Share Holding Company is suitable to make big investments in UAE. In this business, you can get funds through public subscription. In a Public Company, shares are equally divided and can be traded in local stock exchange of the country.  Share capital required for Public Shareholding Company formation in UAE is minimum 10 million AED. Liability of each partner is limited to the amount shared by them and there should be not less than 10 founders (founders are the members who sign the MOA). A public company is allowed to conduct commercial, industrial or any professional business activity.

Joint Venture or Association in Participation is an association formed between 2 or more parties through an agreement. For having a Joint Venture Company set up in UAE, it is essential that one of the parties must have a UAE license. Joint Venture does not enjoy the benefit of separate legal identity. In this business form, trading activities are done in the name of one company, who is held solely responsible for the decisions taken. Profits and losses are shared on the basis of the agreement made between the partner companies. In UAE, a foreign investor can hold the share in company capital and get the benefit of participation in managerial and administrative decisions of the company. In UAE, through a joint venture, a foreign investor gets the opportunity to enjoy the facilities availed by the local business.

Establishing Representative Trade Office in UAE with 100% ownership is legally allowed to foreign investors. Parent Company can have full control over the activities performed in RTO. In UAE, Representative Trade Offices cannot indulge themselves in profit-making activities, as its actions are limited to performing promotional or marketing activities only for the services or products belonging to the parent company. It is essential for the parent company to run its Branch Office under commercial registration by providing a license in its own name. Parent company should appoint a local individual as a National Service Agent (NSA) or it can also appoint a fully owned UAE corporate company as an NSA.

Establishing a Commercial Agency is the best option for foreign-owned businesses, which want to run its business in UAE without maintaining its physical presence. Through running a Commercial Agency, foreign business can have its legal presence abroad. Commercial Agency can also be established by entering into an agreement with a local, fully owned UAE company. A commercial agent is appointed for running such business.

In case, commercial agent registers the contract with Economy and Commerce Ministry of UAE. The law provides such a commercial agent certain protections, including exclusive right to import goods which form business of the commercial agency and receiving commission on the sales done by agent or parent company or the third party. Registration of contract also provides facility to get compensation for not renewing agreement on the date of expiry, by the principal, as principal can terminate its agency only on “material grounds”.

Setting up a Branch Office in UAE is a common way for foreign companies to reserve 100% ownership-right over their businesses abroad. Opening a Branch Office in the foreign country sometimes becomes essential for running a smooth business for the parent company. This business form is best suited to companies dealing in financial products or having engineering business abroad. Branch Office Commercial registration in UAE is legally allowed. Branch Offices cannot enjoy the benefit of a separate entity as they are treated just as an extension of business by the parent company. The parent company is always held liable for all the activities conducted in (or performed by) Branch Offices in the UAE.

In UAE, a branch office is allowed to get engaged in commercial activities for monetary gain. However, a branch office can engage only in the activities alike to those executed by its parent company or main company in its home country, as approved by the UAE Department of Economic Development. For Branch Offices, it is essential to have commercial registration to conduct its business and it should work in the name of its parent company. A local National Service Agent (NSA) should be locally hired or a fully owned UAE company should be hired to act as NSA.