Simple Limited Partnership
Setting up a business in Dubai with quintessential strategy is rewarding. One of the necessary steps while setting up a is to choose a legal form. A Legal form describes the type of business you are incorporating.
There are many legal form options to select one that is apt for your business.
The few popular ones are Limited Liability Company, Simple Limited Partnership, foreign branch office, branch of a free zone company amongst others.
For selecting a legal form for your business set up in Dubai, one must consider the business type, business activities, the number and the nationality of owners and the ownership options.
What is Simple Limited Partnership?
As defined by Department of Economic Development, Dubai: A Simple Limited Partnership is formed between a minimum of two partners – one general partner and one limited partner. The general partners are liable for the company's liabilities to the extent of all their personal and business assets; the 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. Each branch may undertake one or all of the activities included in the primary business license.
Decisions concerning the amendment of the memorandum will not be valid unless being made with the unanimous consensus of the general and limited partners.
How is the General Partner Different from the Limited Partner?
- General partners are must to be UAE nationals whereas nationals of other countries can be limited partners.
- The name of the company should be that of one or more of the general partners, with an addition noting that this is a company name. The name of any limited partner should not be mentioned in the name of the company.
- A limited partner may not interfere in management functions involving third parties even with the authorization to do so. Although a limited partner can participate in internal administrative. They have full right to verify the profit and loss account and the balance sheet and also company books and documents, provided that this would not cause damage to the company.
What is the Difference Between a Limited Company and Limited Liability Company?
On the other hand, in case of a Limited Partnership Company, each general partner and a limited partner can own any share of the business. There is no minimum or maximum ownership level for any partner.
Why Business Setup Worldwide?
Business Setup Worldwide has experts to guide you in your journey of setting up your business in Dubai. We analyse and give you exclusive business solutions pertinent to the theme of your business. We have a background experience of twelve plus years of delivering to clients to their optimum satisfaction. We can give you clarity on selecting legal forms, business entities, local partners and every other crucial business setup solutions and services. Contact us for any query on business set up; we would be happy to assist you.