The UAE is a great environment for establishing companies and developing businesses, and provides investors with many opportunities in various sectors. In this context, the model of a contract for establishing a company between partners in the Emirates is an attractive opportunity for companies wishing to enter into a strategic partnership with a local company with reputation and experience.

Itqan Company, one of the leading companies in the United Arab Emirates in the field of advisory and investment services, cooperated with a group of partners to develop a model of company incorporation contract that meets the needs of investors and is compatible with local laws and legislation.

Establishing a company between partners is an important strategic step in the business world, and requires attention to complex legal and financial details. In order to facilitate this process and provide the necessary guidance, we will present to you in this article a comprehensive model of the company’s incorporation contract between the partners, including the necessary details and important conditions that must be taken into account.

In this article, we will review the main points that must be contained in the company’s incorporation contract, in addition to an explanation of the local legislation and laws that regulate the process of establishing companies in the UAE.

Drawing on Itqan’s experience in the field of legal and financial consulting, you will be guided step by step through the process of preparing and signing the company’s articles of incorporation between the partners, ensuring compliance with legislation and legal controls and achieving sustainable success for your business project in the UAE.

A sample contract for establishing a company between partners in the Emirates

The company’s incorporation contract between partners in the Emirates includes basic elements that must be carefully addressed. These elements are determined based on choosing the appropriate type of partnership, whether it is a local company or a company owned by a foreign investor.

The contract includes the most important information related to the partners, such as their names, nationalities, and shares in the capital. The business activity that the company will engage in and the main purpose of establishing the company must be determined. The contract also stipulates the mechanism for making decisions, managing the company, and distributing profits and losses among the partners.

In addition, the contract deals with other important issues such as the financial and legal responsibility of the partners, and how to deal with changes in the corporate composition such as the entry of a new partner or the withdrawal of an existing partner. The contract also aims to clarify the mechanism for resolving disputes and settling disputes between partners.

It is important that the company’s articles of incorporation are prepared accurately and professionally to ensure that the rights of partners are protected and that a sustainable and successful business environment is provided. It is highly recommended to cooperate with a professional consulting firm such as ITQAN in preparing the contract and ensuring compliance with local laws and regulations.

The model of the company’s articles of incorporation between partners in the Emirates reflects the country’s commitment to providing a transparent and favorable business environment for investors, and is considered a powerful tool for successful business cooperation and achieving growth and prosperity in the Emirati business market.

Establishing a company in the Emirates

Establishing a company in the UAE requires adherence to certain procedures and compliance with local laws and regulations. Here are some basic steps to follow:

1. Choosing the type of company: You must determine the type of company you want to establish, whether it is an individual company, a partnership, or a joint stock company.
2. Determine the business activity: You must specify the business activities that you wish to practice through the company.
3. Choosing a company name: You must choose a unique and non-duplicate name for the company and ensure that it complies with local laws and regulations.
4. Identification of shareholders and directors: The identity of the company\’s shareholders, directors and management officers must be identified.
5. Preparing legal documents: The necessary documents must be prepared, such as the articles of incorporation, the company’s statute, and the bylaws.
6. Obtaining a work license: You must obtain a work license from the competent government authorities in the emirate in which you intend to establish the company.
7. Company registration: After preparing the documents and obtaining the necessary licenses, a registration application is submitted to the competent authorities to obtain the company’s incorporation certificate.
8. Opening a bank account: After registering the company, a bank account must be opened in the name of the company to manage financial matters.
9. Registration with other government bodies: The company may need to register with other government bodies depending on its business activity.
10. Tax Compliance: You must ensure compliance with all local taxes and register with your local tax authority.

The most common types of companies in the Emirates

In the UAE, there are a variety of types of companies emerging and thriving, and their popularity and reach vary depending on economic sectors and market needs. Here are some common types of companies in the UAE:

• Limited Liability Companies (LLC): Limited liability companies are one of the most common types of companies in the UAE, as this structure provides a combination of flexibility and legal protection for shareholders.
• Sole Proprietorships: Also known as “sole proprietorships”, they are suitable for individuals who want to start their own business without the involvement of other partners.
• Family businesses: Family businesses are characterized by being owned and managed by family members, and focus on developing the business sustainably across generations.
• Personal shareholding companies: This structure represents companies that include shareholders who bear limited responsibility for the debts and financial obligations of the company.
• Holding companies: Holding companies work to purchase shares or establish subsidiaries with the aim of managing and developing the investment portfolio.
• Free companies in free zones: Free zones in the UAE are home to many free companies that enjoy privileges such as no taxes and customs.
• Technological and innovative companies: With the development of the technology sector in the UAE, technological and innovative companies have come to play an important role in the local economy.

Establishing a company between partners in the Emirates

How to finance the establishment of a company in the UAE

Financing the establishment of a company in the UAE can be done through several different sources, and this depends on the type of company and the size of the investment required. Here are some common ways to finance company formation in the UAE:

1. Self-financing: Founders can use their personal savings or money they own to finance the process of establishing the company.
2. Bank loans: Founders can apply for a bank loan to finance the process of establishing the company. Different loan options are available based on the company\’s needs and repayment capacity.
3. Venture capital: Partners or shareholders of the company can provide the investment capital necessary to finance the establishment process and start business activities.
4. Financing partnerships: The company can search for other financing partners to provide the necessary capital.
5. Grants and government support: Some government agencies in the Emirates provide financial support programs and grants for emerging and innovative companies.
6. Dedicated capital: Companies can attract capital from investors through equity offerings or venture financing.
7. Convenience financing: Some companies choose a convenience financing option that allows them to access funds without having to pay them back immediately.

Papers and permits necessary to start establishing a company in the Emirates

Starting a company in the UAE requires a number of necessary papers and permits to ensure legal compliance and facilitate the incorporation process. Here is a list of basic documents you may need when starting a company in the UAE:

• Company incorporation application form (incorporation form): This form contains company information such as the company name, type of business activity, type of legal structure of the company, and details of shareholders and managers.
• Copy of passport for shareholders and directors: You need to submit a copy of passport for both shareholders and directors.
• Personal photographs of shareholders and directors: Personal photographs of shareholders and directors are usually required for identification purposes.
• Certification of Non-Conviction: You may have to obtain a certificate proving that there are no judgments against shareholders and directors.
• Partners agreement (in the case of LLCs or partnerships): If the company relies on partners, it may need a partners agreement that defines their rights and obligations.
• Title Deed Certificate: If the company will own real estate, it may need a Title Deed Certificate.
• Tenancy Contract: If the company will be renting office or space for operational purposes, it may need a lease.
• Approval from the competent government authorities: You may need approval from the competent government authorities based on the type of business activity and the location of the company.

In conclusion, this article provided a comprehensive overview of the model contract for establishing a company between partners in the Emirates, in cooperation with Itqan Company. We explored the steps to establishing a company, the importance of clear terms and conditions in the contract, and ensuring compliance with local legislation and laws.

Through this partnership with Itqan, we were able to provide a company memorandum of association model that meets the needs of businesses in the UAE in an efficient and reliable manner.

We believe that a deep understanding of commercial contracts and company formation is the foundation of business success, and we hope that this model will be valuable to readers and companies wishing to establish their companies in the UAE.

We thank Itqan Company for its cooperation and providing its expertise in this field, and we look forward to more fruitful partnerships in the future.

The most important frequently asked questions about establishing a company in the Emirates