Considerations to make before entering into a business partnership in Dubai

  • Categories: Business
  • Written By: Torjoman
  • Date: September 4, 2022

Business owners seeking to form a business partnership in Dubai may be looking to fulfil pre-requisites for governmental formalities or to run the company operations together. Here’s the why and what of business collaboration in the UAE. The following column will go into greater detail about the legal aspects of a general partnership firm.

Why should you look for a business partner in the UAE?

The primary reasons for those trying to engage with potential business partners in the UAE to run the company may include investment. Someone may have a brilliant business idea but not enough money to pursue it. Convincing a trustworthy partner who is not only willing to invest in your business is essential here.

Value-added prospects are another major reason for seeking a business partner.

Your partner may assist you in expanding into a larger market or in providing networking and marketing chances.

Furthermore, having a partner allows both parties to pool their skills, knowledge, and financial resources in order to grow your business together.

What is the procedure for forming a business partnership in Dubai?

For starters, one may be looking for a legal business partner in Dubai. Despite the fact that the country now allows 100 percent foreign ownership, certain business sectors are regulated, and it is therefore recommended that you partner with a local. This applies to a wide range of commercial and industrial activities, as well as the health and educational sectors.

However, this is determined by the nature of the business activity and the demands.

Nonetheless, the local will be a sleeping partner and will assist your company with legal registration and supporting services such as licencing and visa documentation.

Furthermore, because the corporate structure is flexible, it is possible to change it after the necessary formalities.

Entrepreneurs seeking an active business partnership in Dubai should be aware of the following legal considerations:

Role allocation and ownership

The percentage of company ownership should be clear to the partners. They should also define their roles and responsibilities.

Financial assets

Before forming a partnership, the stakeholders must agree on financial issues such as salary distribution, profit and loss distribution, and reinvestment for business expansion.

Making a decision

This is the most crucial aspect of your company’s functionality. Processes, assignments, recruiting and training employees, marketing, day-to-day management, long-term plans, and final say are all examples of these.

Financial operations

Banking is another essential part of business collaboration in Dubai. Transactions, signatures, and loans must be assigned by the partners.


It is likely that your corporation will encounter a stumbling block as a result of a difference of opinion among stakeholders. However, in order to protect trade secrets, the partners must prepare a fair contract.

Exit or perish

What happens when one of the partners dies, wants to leave the business, or simply retires? The business partnership contract should include provisions such as:

  • His/her profit and share’s fate
  • Allocation of pending profit to members of his or her family
  • The finalisation and onboarding of a new partner
  • Savings for retirement
  • Changes to the document

If one of the partners is a foreigner, he must translate all the documents he will need, and he can benefit from legal translation services in Dubai to do that.

In Dubai, how do you find a business partner?

It may take some time to find a business partner in Dubai, UAE, as this is a major decision for your company. If you find one or more, you can form a limited liability company or a civil company with a general partnership contract.

You can also approach outside shareholders, also known as angel investors, if you already have an LLC and are looking for funding. By temporarily pledging shares, you can introduce them on board for a limited period of time.

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