Partnerships Vs Joint Venture Companies in the UAE; What to Go For?

Well, if you are a foreign investor with a great business idea for the UAE market, you must know the benefits of doing business in the UAE. Though it’s very lucrative option, you must know the details of setup and structures in order to move in the right direction.

At first make sure your business idea is something in the high demand; do check this list of profitable small business ideas for UAE and see how and what you can innovate.

Next comes the knowledge of basic law and limitations. Here’s a quick excerpt of the legal structure of business in the UAE.

Now if you intend to engage a partner/co-founder or something like that, you must know that General partnership companies are limited to UAE nationals only. The government does not presently encourage general partnership companies for foreigners.


On the other hand, a joint venture is a contractual agreement between a foreign party and a local party licensed to engage in the desired activity, whereby the local equity participation in the joint venture must be at least 51%, but the profit and loss distribution can be prescribed.

The join venture company doesn’t need license or publish the agreement; the foreign partner deals with third parties under the name of the local partner who (unless the agreement is publicised) bears all liability.

In practice, joint ventures are most popular businesses for the foreign investors in the UAE.

Well, it’s good to read about law and other stuff for setting up business, but talking to expert in person saves a lot of time as well as money. Here are some of very reputable websites to get in touch with local UAE business setup consultants.

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