Add or Remove Partners
Table of Contents
Add Or Remove Partners
Adding or removing partners in a Mainland business setup in the UAE involves specific legal and procedural steps, as regulated by the Department of Economic Development (DED) and other relevant authorities. Here’s a detailed guide:
Steps to Add a Partner:
Amend the Memorandum of Association (MoA):
- Modify the MoA of the company to include the new partner’s name and their shareholding percentage.
- This requires the consent of all existing partners.
Draft the New Shareholding Agreement:
- Outline the new distribution of shares among partners.
- Ensure this document is signed by all existing and new partners.
Obtain Necessary Approvals:
- Submit the updated MoA and shareholding agreement to the DED for approval.
- Additional approvals may be needed if your business operates in specific sectors.
Payment of Capital Contribution:
- The new partner must contribute the agreed capital amount (if applicable).
Notarization:
- Visit a Notary Public with all partners to notarize the amended MoA.
Apply for a Trade License Amendment:
- Submit an application to amend the company’s trade license to reflect the new partner and shareholding structure.
- Provide the following documents:
- Amended MoA
- Passport copies of all partners (new and existing)
- Emirates IDs of UAE residents
- Copy of the trade license
- Ejari (tenancy contract for the business premises)
- NOC (No Objection Certificate) for the new partner (if they are employed in the UAE).
Pay Fees:
- Pay the applicable fees for the trade license amendment and partner addition.
Receive the Updated Trade License:
- Once approved, the DED will issue the updated trade license reflecting the new partner’s details.
Steps to Remove a Partner:
Amend the MoA:
- Update the MoA to reflect the removal of the partner and redistribution of their shares.
- All partners must consent to the amendment.
Buyout Agreement:
- Draft a buyout agreement if the departing partner is selling their shares to another partner or a new investor.
- This agreement must specify the terms of the sale and be signed by all parties.
Obtain Necessary Approvals:
- Submit the updated MoA and buyout agreement to the DED for approval.
- Additional approvals may be required depending on the business activity.
Notarization:
- All partners must visit a Notary Public to notarize the amended MoA.
Pay Fees:
- Pay the applicable fees for the trade license amendment and partner removal.
Receive the Updated Trade License:
- The DED will issue the updated trade license without the departing partner’s details.
Government Entities We Work With
Common Questions About Mainland Setup
Questions:
- What is the difference between Mainland and Free Zone?
- Can I own 100% of my business?
- How long does it take to get a license?
Why Choose Alameer Corporate Services?
Your Trusted Partner in Mainland Business Setup
- Over 10 years of experience.
- End-to-end support.
- Transparent pricing and no hidden costs.
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