Civil Company
in UAE
Civil Partnership Firm in UAE
Highgate Business Management Consultants offers services for setting up a civil partnership firm in the United Arab Emirates (UAE). A civil partnership firm, also known as a professional company, is a suitable option for conducting service-related or professional activities. This type of firm is governed by the relevant provisions of the UAE Civil Code, as well as Local Order No. 63 of 1991 that relates to the licensing of craftsmen and professionals in the Emirate of Dubai (replaced by Law No. 13 of 2011 Regulating the Conduct of Economic Activities in the Emirate of Dubai).
A civil partnership in Dubai or elsewhere in the UAE is usually formed by two or more individuals who are jointly liable for any losses or debts that arise out of the partnership, unless stated otherwise in the Civil Partnership Agreement. It is mandatory to have a Civil Partnership Agreement signed before a Dubai Court Notary Public.
What is a Civil Company?
A civil company is a type of professional company that is commonly formed by professionals like doctors, architects, engineers, and lawyers when setting up their own companies. This type of company is 100% owned by the partners in the firm, except for some fields of business that allow 100% foreign ownership. The exception to this rule would be civil companies that offer engineering services and in a few other fields like defence.
In the case of an architecture firm or a construction company, it is mandatory for one of the partners to be an Emirati or UAE national and his/her share be a minimum of 51%. This partner must also hold relevant qualifications and have work experience in the field. The minimum number of partners in a civil company is two and the upper limit is 50.
A foreign company can also be a partner in a civil company, provided the foreign company operates in the same field as the civil company set up in the UAE. However, a company incorporated in the UAE cannot be a partner in a civil company.
Local Service Agent for Civil Companies
A Local Service Agent, who is an UAE national, is a must for all civil companies on the mainland. The Local Service Agent does not hold any stake in the civil company, but is paid a fee for his/her services. These include coordination with all Government agencies.
Advantages of a Civil Company
A Civil Company is not a Limited Liability Company, where the liability of the company is limited by law. However, it is preferred over LLCs because there is no limit to the number of visas that can be issued in the case of a civil company. The only precondition is that one needs to acquire more office space if he/she needs more work visas. As a general rule of thumb, one needs about 100 square feet of office space for every additional visa. However, there are restrictions on the number of Managers a Civil Company can have.
Highgate Business Management Consultants has a team of friendly and knowledgeable company formation experts who can provide assistance in setting up a civil partnership firm or a civil company in the UAE. Our experts can answer all your queries and provide guidance on all the requirements needed to successfully establish your business. Contact us today to learn more about our services.
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