How to do Business Partnership in Dubai?
Business Partnership in Dubai
Setting up your company in Dubai comes with a plethora of benefits. You can enjoy a tax-free regime, complete ownership of your business, 100% repatriation of your profits, and much more. You can establish a legal business partnership in Dubai by opening a joint venture, LLC, etc.
A limited liability company offers the flexibility to have up to 50 business partners with a minimum requirement set to 2 members. You can collaborate with the business consultants at Shuraa to set up your partnership firm in the UAE as we take care of everything for you.
Steps to do Business Partnership in the UAE
Opening a partnership firm in Dubai is straightforward when you follow the right steps. Here are the detailed steps you need to follow to establish a legal partnership in the UAE:
1. Understand your Requirements
You must understand the need and importance of an ideal business partnership in the Emirates to kickstart your dream venture. How many partners do you need, and who would be everyone's role in the company once onboardings are done?
Address these questions by digging deep into your business venture and the desired legal structure you wish to establish. You can apply for a Dubai company license once you have finalized your legal setup, be it an LLC, shareholding company, etc.
2. Find the Right Partners
Driven individuals with the zeal to succeed in the UAE’s competitive marketplace can be the game-changer you’re looking for. Always partner with people willing to add value to the goals and make your brand a credible entity in the marketplace.
You need to know who they are, what they offer, and how they will fit into your scheme of things before reaching a conclusion. The UAE’s government maintains well-defined proctors for business partnerships to function smoothly in the country.
3. Discuss the Goals
Always discuss the business objectives, values, and monetary aspects related to investment and liabilities with the potential partners. This ensures there aren’t any surprises after all the documentation has been done and the partnership is legalized.
You can come to mutual agreements with the partners who want to be a part of your organization and also the ones that don’t align with your business requirements. It’s better to discuss everything in advance and ensure everyone’s on the same page.
4. Connect with Experienced Legal Advisors
You need to take care of a lot of things as an expatriate business investor in the UAE. Therefore, it’s recommended to collaborate with the experienced legal advisors at Shuraa, and we’ll help you with all the legalities related to corporate partnerships in Dubai.
Moreover, business consultants help you find the ideal location for your company and guide you to apply for the Dubai company license. This way, you’re able to focus on other critical business activities related to your company’s growth.
5. Make it Official
Once you’re done with all the above steps, it’s time to make the partnership official. The paperwork for the same includes copies of passports, identity verification documents, NOC signed by all the business partners, etc.
Evaluate all the partnership norms one last time before proceeding with the signatures of all the business partners.
Points to Consider When Entering a Business Partnership in Dubai
There’s a lot to address when you’re looking for the ideal business partners for your firm in the UAE. Here are a few points you must consider before finalizing the partners:
1. Local Service Agent Vs. Local Sponsor
A local service agent (LSA) is different from a local sponsor in the UAE. You need to hire a local service agent when you launch your company in the free zones. An LSA doesn’t hold any equity in your company and only helps you acquire the business license and offers assistance with other legalities.
However, you can now collaborate with an LSA in the mainland region too, thanks to the latest amendments to the Companies Law. A collaboration with a local sponsor is different as the local sponsor gets 51% shareholding in your company and can also have a say in business matters too.
2. Know Everything About Them
You should know everything about the people who’ll soon come into a business partnership in Dubai for your company’s formation. Analyze who you want from each partner and choose them wisely to ensure everyone contributes to the goal to the best of their capabilities.
It’s critical to align with all the participants to remove any internal friction that might deviate the business partners from the set objectives. It’s after this point that you can start to ponder over the legal structure of your firm in the Emirates. You can connect with the business experts at Shuraa, and we’ll help you draft a partnership contract ideal for your business.
3. Cover all Scenarios in the Partnership Agreement
A legal partnership is bound by contracts and agreements. Therefore, don’t forget to mention all the scenarios and conditions in the partnership’s official agreement document. These terms and conditions come to the fore when there’s a conflict among the business partners.
Cover various scenarios related to legal authority, the shareholding of each partner, liability of each partner towards the company, etc. Moreover, always address the rules and regulations for onboarding a new partner to your firm in the future.
Open your Partnership Firm in Dubai!
Dubai is the land of opportunities, and you don’t want to miss the chance of setting up your dream venture in this region. The supportive business laws, well-defined procedures, and a friendly working environment ensure that your company prospers in the UAE and generates the targeted revenue. All you need to do now is get in touch with the legal consultants at Shuraa Business Setup, and we’ll make a business partnership in Dubai a hassle-free venture for you.
You can reach out to our experts at +971 44081900 or write to us at [email protected] We're also available to answer your queries on WhatsApp at +971 50 777 5554.