Establishing a business in the United Arab Emirates (UAE), especially Dubai, has become a very profitable proposition now. For the past few years, there has been widespread development in infrastructure of the UAE; leading to an ideal atmosphere for economic growth. UAE, besides offering abundant business opportunities to aspiring entrepreneurs, also has a seamless process for registering a basic partnership firm. For setting up any business in Dubai it is imperative to first decide on the legal structure of the business entity whether it will be a Partnerships, Limited Liability Company (LLC), a Private and Public Joint Stock Companies, a Branch office, a Subsidiary, a Free Zone Limited Liability Company, a Free Zone Establishment or a Sole Proprietorship firm. Here, the Partnership Firm Registration – Basic has been discussed.
What is a Basic Partnership Firm in the UAE?
By definition, a General or a Basic Partnership Firm is a business entity incorporated by executing a Partnership Deed, i.e., an agreement signed between two or more partners to establish a business. A General Partnership Firm in Dubai can be formed by only UAE nationals. The Partnership Deed lays down the details like the extent to which each of the partners, jointly and/or severely, is liable for the company’s liabilities, its debts and legal action. It outlines in detail the profit-sharing pattern among the partners. The agreement also has provisions for drawing up a Deed of Dissolution in the possible event of death, insanity, bankruptcy, or withdrawal of any partner by way of executing a fresh partnership deed (agreement). Some of the salient features of a Basic Partnership Firm are as follows:
- Administration of the company shall be with all partners, except in the case where it is assigned to a partner or a non-partner, through a separate contract.
- Each general partner may hold any No. of shares. There is no minimum or maximum holding for any partner
- It can appoint a manager according to the Department of Economic Development (DED) business regulations.
- In Dubai, a general partnership Firm may have more than one branch, with each branch carrying out one or all of the business activities as mentioned in the business license.
Steps of Registering a General Partnership Firm in Dubai and Documents Needed
For registering a business as a General Partnership Firm the following step needs to be complete:
- Select a name for the company. The name of the company shall comprise of the name of all partners or limited to the name of one or more partners. In case, there already exists a company with the same name a word is to be added to modify the name. Further, the company may be given a special commercial name.
- The partners must apply to the Registrar through an application for the registration form, duly filled in and signed by each partner.
- The application must include:-
- The General Partnership name end with the word ‘Partnership’
- The registered office address of the General Partnership
- Nature of business to be conducted
- Name and address of each of the partners of the General Partnership Firm
The authority might ask for additional information to be submitted
On reviewing the application for the registration form, the registrar will approve commencement of business.
The following documents are required:
- Copies of Passport and valid IDs of partners and managers
- Certificate of initial approval from the DED
- Name registration certificate of the Company
- NOC signed by all the partners
- Document showing the Official address of the company
For Company Incorporation in the UAE, GCC Filings is a name to be trusted. Once the General Partnership Firm Registration is complete there are financial and legal compliances to be made to operate the business in the UAE. Besides Company Incorporation, GCC Filings provides professional services in Accounting Services, Tax Audit, Tax Consulting; Filing and Return Submission as well as VAT Registration in the UAE.