GNcareers, from Gulf News

Setting up joint partnerships

Businessmen can choose from the many types availableImage Credit: Supplied

Any entrepreneur who wants to set up a company in the UAE may do so either through a free zone or a joint partnership. For joint partnerships, 51% of the company must be owned by a UAE national.

There are several types of business partnerships available in the country, among them are as follows:

General partnership – This is restricted to UAE nationals with no minimum capital requirement. All partners have unlimited liability for the firm’s obligations.

Limited partnership – This is formed with no minimum capital requirement by one or more general partners or limited partners, with a UAE national appointed as director.

Joint partnership – In this, two or more parties may establish a joint venture without a minimum capital requirement and agree to split the profits and losses of one or more businesses.

Private joint stock company – This is formed with a minimum of three members and a capital requirement of minimum Dh2 million. Majority of its shareholders and board of directors are UAE nationals.

Public joint stock company – Ten members are needed to establish this type of partnership that requires a minimum capital of Dh10 million. Some of its shares must be offered to the public. Like the private joint stock company, majority of its shareholders and board of directors are UAE nationals.

Limited liability company (LLC)– Formed with at least two or a maximum of 50 members, it offers flexibility in terms of management structure and allocation of profits. It is also one of the most viable options for those considering a partnership in the UAE. Capital is Dh300,000 in Dubai and Dh150,000 in other emirates.

Handy Hints:

* LLC is most common form of ownership in UAE

* There is no capital requirement for joint ventures

* General partnership is restricted to UAE nationals

Source: Urmila Santosh, Special to Classifieds

The writer is a freelancer