How to set up a Limited Partnership Company in Dubai?
October 30, 2023 - 11:38 AM
Setting up Company in Dubai has become a very profitable proposition nowadays. There has been a drastic development in the infrastructure of Dubai during the past years. This led to economic growth in the country. Dubai is not only successful in offering ample business opportunities to entrepreneurs but also has a seamless process for registering a Limited Partnership Company.
It has always been welcoming various kinds of businesses in the Dubai Free Zones like, the Sole Proprietorship, Limited Liability Company, and Joint Venture business to start their establishment in the country and expand it further. Now, for a business to business set up in Dubai one needs to choose a legal structure first and Dubai offers many such corporate entities to the entrepreneurs, one such thing is a Limited Partnership Firm.
Formation of Limited Partnership Company in Dubai
As per the Department of Economic Development (DED), A Limited Partnership is formed between a minimum of two partners, one is a General partner and another is a Limited partner. Sometimes it is called 'silent partner" as the partner does not take part in any of the business activities or share any profit or losses of the business. Limited Partners are liable for a share of company liabilities equal to their share of the company capital. The company can have more than one branch and every branch can take over one or all activities which is included in the primary business license.
Difference between a General Partnership and a Limited Partnership Company in Dubai
The main difference between General Partnership and Limited Partners is that the General partners must be UAE nationals whereas Limited Partners can be nationals of other countries. The company name along with the company should have names of the General partners but the name of the Limited Partner should not be mentioned in the name of the company.
A limited partner should not interfere in management functions or involve third parties even if he/she has the authority to do so. Although a limited partner can participate in internal administration. They have full right to verify the profit and loss account and the balance sheet and also company books and documents if this would not cause damage to the company.
Key Steps to Set up Limited Partnership Company in Dubai
The key steps to set up a Limited Partnership Company in Dubai are:
Choosing a catchy trade name.
Approval from the General Directorate of Residency and Foreigners Affairs for any foreign investor is required.
Provisional approval is needed which is a certificate that enables the partner to apply for a business license.
An authorization is needed from other relevant authorities which depends on the nature of your business.
The partner may apply for a business license via the website of the Department of Economic Development (DED), or in person at a DED customer service Centre.
What are the Rules of Limited Partnership?
Like all other businesses, Limited Partnership also has certain rules and regulations for a company formation in Dubai:
Besides the other details, the liability contract shall include the name of every partner, along with his surname, date of birth, country, nationality, the portion paid out, and capital share.
The limited partner is only responsible for its capital share to the borrowers of the company.
A limited partner cannot interfere in other matters relating to the company's administration even after getting the authorization.
He/she can request a copy of the loss/profit reports and the balance sheet and verify the data is authenticated.
If the limited partner fails to maintain the previous criteria then he/she will be responsible for all the obligations arising from his business in all companies.
The limited partner may be held accountable for all his money for all obligations of the corporation.
If the limited partners carried out any of the banned administration business based upon an explicit or implicit authorization from the partners, such partners should be held responsible for the obligations resulting from such acts.
A limited partnership shall issue resolutions in the consensus of all partners and limited partners unless the contract states a majority, and the majority number shall be considered unless otherwise stated.
What are the Documents Required to Set up a Limited Partnership Company in Dubai?
After submitting a commercial license issuance application form, these documents are required:
The certificate of a trading name is required.
A certificate of preliminary approval is required.
The UAE identification card of the applicant is needed.
The registration extract is required for each concerned who is a citizen of the Emirates.
The lease arrangement is needed for the place of business.
If the partner has a representative for presenting the application for a license, an approved power of attorney is required by a notary public.
A photocopy is required along with the business sign, further carrying the calligrapher's seal and signature and the measurements of the board.
A NOC is required by an appropriate authority if the business needs permission to carry out its economic activity.
Approval is required from the General Directorate of Residency and Foreigners Affairs for any foreign investors.
The founding agreement of the partner must be authenticated by a notary public.
The proof is required showing that the partnership's founding agreement has been published in the Ministry of Economy bulletin.
The registration certificate from the Economy Ministry.
What is the Cost Involved in the Limited Partnership Registration Process?
The fees vary according to business activity:
The Commercial license issue fee-AED 100
The Commercial register fee-AED 100
The Signboard fee-AED 150 per square meter
The Operation fee, commercial operation value + 25 percent service enhancement fee.
Termination of the Limited Partnership
The partner's termination occurs due to the following reasons:
Due to withdrawal of any partner
Due to a bankruptcy a partner
Due to the insanity of a partner
And due to the death of a partner
However, the partnership firm can continue if the rest of the partners agrees to this.
Why choose Danburite Corporate for business setup in Dubai?
Danburite Corporate has experts to guide you in your journey of setting up your business in Dubai. It is one of the leading consultancy service providers in Dubai. We can give you clarity on selecting legal forms, business entities, local partners, and every other crucial business setup solution and service. Contact us for any queries on business setup in Dubai. We will be happy to assist you!
Foreign investors who acquire real estate in Dubai worth a minimum of AED 2 million can now apply for a 10-year Golden Visa, a remarkable opportunity provided by the DLD. This initiative has been implemented to encourage more investments in the Dubai property market and boost the economy.
The Golden Visa is an excellent opportunity for those
Here's what you need to know about it.
As is commonly understood, a Golden Visa is a residency permit valid for 5 or 10 years, that confers various advantages, such as the ability to reside and work in the UAE for a prolonged period, without the requirement of a local sponsor or employer. A Golden Visa presents investment prospects, elev
The UAE has made significant progress in promoting female entrepreneurship over the years. In the UAE, 77.6% of women-owned businesses (WOB) are run by people under the age of 40, according to a recent survey by NAMA Women Advancement in collaboration with UN Women.
The results of this study were published in the book "Women-Owned Businesse
According to E-commerce DB, the United Arab Emirates is the 28th largest market for e-commerce with an expected revenue of USD 11,782.3 million by 2023. E-commerce has helped many businesses gain access to the world market, allowing small businesses to expand their reach.
Setting up an e-commerce business has numerous benefits. Not only does it
CORPORATE BANKING
Opening a bank account for your company has many advantages. It contributes to the improvement of the company’s credibility, improves the financial management of the company, and offers protection for business funds, creating easier financial transactions. Clients of the company will feel reassured about its legitimacy, a
The United Arab Emirates mesmerizes with its incredible scenic beauty and unmatched modern infrastructure! It is impossible to believe it was once a vast desert with no amenities or life. However, the gracious rulers of the region had the vision and foresight to turn around the fortunes and make UAE a powerful and modern nation highly respected tod
The United Arab Emirates (UAE) offers a Golden Visa program for investors, entrepreneurs, and talented individuals looking to live and work in the country. This program grants long-term residency to individuals who make significant investments in the UAE, allowing them to stay in the country for up to 10 years and potentially even apply for citizen
The United Arab Emirates (UAE) has constantly been leveraging its limit to broaden the business scope. The Emirati Government's visionary leadership has aided in transforming the concept of business incorporation. Various segments and dedicated regions have been developed across the UAE to focus on specific business industries. Because petroleu
Business in the United Arab Emirates (UAE) has been growing to make many ex-pats into Business entrepreneurs. The investor-friendly regime has ensured that Dubai, Abu Dubai, and other emirates in the country are fertile for the growth and development of businesses. Consequently, the UAE witnesses one of the pinnacle enterprise locations around the
The idea of setting up a business in Dubai can be a lucrative opportunity for a company to broaden its reach and establish a reputable brand name internationally. You can benefit from Dubai's cutting-edge infrastructure, strategic location, easy access to nearby markets, and world-class connectivity whether you're a small, medium, or large
Dubai has been the flag-bearer of the United Arab Emirates's global progress for quite some time. The city provides expanding economic opportunities, diverse business start-ups, and investor-friendly policies to entrepreneurs from all over the world. Before you start forming your company, you must decide which free zone you want to operate in.
The United Arab Emirates (UAE) continues to attract more businesses around the world due to its strategic locations and business-friendly ambiance. To set up a business in Dubai legal procedures and documentation must be followed for ensuring the Legal Setup of your Business in Dubai. Once you've completed all of your legal procedures, starting
A business setup in Dubai can be a lucrative opportunity to expand the company's reach internationally and establish a reputable brand name. Whether you're a small, medium, or large business, you can take advantage of Dubai's cutting-edge infrastructure, strategic location, easy access to nearby markets, superior connectivity that makes
Trading is one of the most critical industries in the United Arab Emirates (UAE). According to new data, the UAE is the world's 25th largest exporter in the world. before that, we must see the trend. In 2014, Dubai was ranked first for airport connections to business districts and fifth for the most affordable city, making it a global 'City
The United Arab Emirates is one of the top trade and commerce destinations in the world. Authorities of Dubai have taken certain measures to boost the trade and commerce activities in the country to make the business hub of global trade. It has persistently seen trade and commerce growth in the past few years and it is continuing to do so. With a b
The first step in starting a business is to develop a winning business idea, but ideally, you will create a business that both interests you and fills a market need. When expanding your business in the city, you must raise awareness among the locals. It is critical to strike deals with local import and export dealers to maintain good connectivity.
Anyone Who is wondering to start a business in Dubai always considers the cities of the UAE as their first preference. For investors, the UAE has become a household name. As a result of doing business in the UAE, many residents have become successful entrepreneurs. The investor-friendly regime has made Dubai, Abu Dubai, and the country's other
When we look at how far Dubai has come in such a short period, it is easy to see why starting a business in Dubai is such an attractive prospect to many entrepreneurs. A business setup in Dubai is often a moneymaking chance to form a business, grow internationally, and build a reputed brand name. Whether you are a little, medium, or massi
Dubai is a grounded destination for business investors to step forward. Over the years, Dubai has become one of the most significant places to set up Business. From broad diversity in population to a flourishing economy, Dubai is a city of opportunities to large investors.
One of the attractions to set up business in Dubai is its tax r
The government in the UAE offers various incentives to Foreign business owners to register a business in Dubai. With the investments pouring in, there has been an increase in the number of companies in Dubai. The city's economy is flourishing, with no taxes, and their world-class infrastructure, business registration Dubai is on an all high. Al