Dubai Forums Dubai Expat Forums Working in Dubai

Hi everybody.

I'd love to learn more about this aspect of the UAE corporate law.
A client of mine wants to open a store in Dubai, but according to the law he needs a partner/sponsor to hold the 51% of his company.

How the partner research actually is performed? What are the partner's responsabilities and the eventual income?

Can somebody suggest me something about the topic?
Thanks

You get a local to become your partner. This will mean that as a partner he shall receive payment for providing a service. This can be a monthly payment, or a one off annual payment, a percentage of profit, he holds signatory power and you have to go to him for all business and employee matters. He becomes a partner without investing 1 dirham and reaps the rewards.

If the business is a success there is a possibility that the sponsor will take the other 49% from his partner. If the business fails, the partner who holds 49% will still have to "pay" his local partner.

If you have your won investment money then go directly to the free zone areas , no local sponsor required . most of the expats uses the local to sponsor them with the banks for loans to start their business.locals will face the risk of the company financial debts if it goes bad .