Dubai, a land of abundant business opportunities, is known for its thriving trading and e-commerce sectors. The city's strategic location, robust infrastructure, and investor-friendly policies make it an exciting prospect for foreign business investors. Before embarking on your entrepreneurial journey, it's essential to select a company structure that aligns with your business goals. Dubai offers a diverse range of business entities, and one among them is the general partnership.
What is a General Partnership?
A General Partnership is an agreement between two or more nationals in which each partner is jointly liable for the company's debts and legal liabilities. The partnership agreement must include details of the profit-sharing arrangement between the partners. In cases of death, insanity, bankruptcy, or withdrawal, the partnership must dissolve. If a new partner joins the existing partners, then they must create a new partnership agreement.
Features of a General Partnership Company in Dubai
- The partnership agreement documents the company shares, which are not tradable.
- Partners are responsible for the company's financial obligations, even if there is a formal agreement stating otherwise.
- All the partners will oversee the administration of the business until a separate company or independent contract assigns it to a third party who is not a partner.
- Each general partner may own any number of shares of the business. There is no minimum or maximum limit to the ownership of shares for any partner.
- A partnership company can appoint one manager according to the regulations of the Department of Economic Development (DED).
- A general partnership company in Dubai can have more than one branch. Each may undertake one or all of the activities included in the main business license.
Procedure for a General Partnership Company in Dubai
Setting up a general partnership company in Dubai is a straightforward process. Below are the steps that you will need to follow for your company incorporation:
- The partners must apply for registration by signing and filing an application with the registrar.
- The application forwarded must include the following:
- The name of the General Partnership company must end with the word “Partnership”.
- The address of the registered office of the General Partnership
- The nature of the business to be conducted by the General Partnership
- The name and address of each of the partners
- Once the concerned authorities review everything, you will receive the approval. You can now apply for a business license and, after obtaining the license, start operating your business.
Documents Required to Start a General Partnership in Dubai
- Passport copies and valid IDs of partners and managers
- Certificate of initial approval from the DED
- Company name registration certificate
- The official address of the company
- NOC from all the partners
Business Setup Worldwide is a top consulting firm that specializes in accounting, company incorporation, registration, and tax advisory services. With over eight years in the industry, we understand that starting a business in a new country can be daunting, which is why we offer comprehensive support and guidance for your company formation in Dubai. To solve your business queries and start a business, get in touch with us.
