GNcareers, from Gulf News

Opening a general partnership firm

General partnershipImage Credit: Supplied

There are several ways of setting up a company in the UAE, whether the investor is a UAE national or a foreign one.

The seven methods by which one can establish a company here are through general partnership, limited partnership, limited liability company, public joint stock company, joint venture, private joint stock company and partnership limited with shares.

Unlike the other methods which are open to foreign nationals, general partnership and limited partnership (which is not encouraged) are strictly for UAE nationals.

A general partnership can be formed with a minimum of two persons. As per the law, all partners are jointly obligated to fulfill their responsibilities towards the company to the complete extent of their personal wealth.

Therefore, they are all responsible for the management, activities, debts, taxes, and profits and losses (which are equally divided among partners) of the company. How the profits and losses are to be divided depends on what is written in the partnership agreement.

The partnership may be dissolved in the event of bankruptcy, withdrawal of a partner, insanity or death. As per the law, the rest of the partners have the option of continuing the partnership as long as it is registered in the commercial register.

Handy Hints
• General partnership needs at least two partners
• It can be dissolved in event of death, bankruptcy
• All partners are responsible for profits and losses

Source: Urmila Santosh, Special to Classifieds
The writer is a freelancer