Limited Partnership Formation in Abu Dhabi

Public Shareholding Companies, Private Shareholding Companies, Limited Liability Companies, General Partnerships, Limited Partnerships, Partnerships Limited by Shares, Professional Companies, and Shareholding Companies are the seven types of business entities in Abu Dhabi.

If you are looking for business partner in ABu Dhabi, you must be clear with what types of partnership firms you can start. Partnerships are classified into three types: limited partnerships, limited liability partnerships, and general partnerships. A limited partnership company in Abu Dhabi (LP) is distinct from a limited liability partnership company (LLP). 

A simple limited partnership is defined as a company formed by one or more general partners liable for the company liabilities up to the extent of all their assets, and one or more limited partners liable for the company liabilities up to the extent of their respective shares in the capital only. In a simple limited partnership, all general partners must be UAE nationals.

Rules to be Followed When You are looking for Business Partner in Abu Dhabi - Especially for a Limited Partnership Company 

If you wish to open a limited partnership company in Abu Dhabi, there are certain rules and regulations that you must give ears to

• In addition to the other facts, the basic liability contract must include the name, surname, date of birth, country, nationality, percentage paid out, and capital share of each partner.

• The limited partner is exclusively liable to the company's debtors with its capital portion.

• A limited partner does not intervene in other aspects concerning the administration of the firm, even if, with authorisation, he will obtain a copy of the loss/profit reports and the balance sheet and check the data's accuracy. If the limited partner violates the previously stated prohibition, he will be held liable for all liabilities originating from his operations in all firms.

• The limited partner may be held liable in full for all of the corporation's liabilities.

• If the limited partners carried out any of the prohibited administration business with the partners' explicit or implicit permission, such partners shall be held jointly and severally liable for the liabilities deriving from such conduct.

• Until the contract indicates otherwise, a limited partnership shall issue resolutions by consensus of all partners and limited partners, and the majority in number shall be regarded unless otherwise indicated.

• Resolutions to change the business contract may not be made unless unanimously supported by all partners and limited partners.

Note – Failing to follow rules may pave way to termination of partnership. So, several things should be consider before entering a business partnership.

Termination occurs under circumstances like

• Withdrawal of a partner

• A bankruptcy of a partner

• The insanity of a partner

• Death of a partner

However, the relationship can continue if the rest of the partners agree unanimously on it. In this case, such a decision must be properly registered in the register of commerce.

Documents Required for Limited Partnership Formation in Abu Dhabi

When submitting a commercial licence issuance application form, you must additionally include the following papers.

• Tradename Certification 

• Tradename Certification   preliminary approval UAE identity card (and visa, if applicable)

• The registration detail for each person involved who is an Emirates citizen

• The leasing agreement for your company location

• A power of attorney signed by a notary public is required if you have a representative submitting your license application.

• A depiction of the company sign, such as a picture or photocopy, including the calligrapher's seal and signature, as well as the board's measurements.

• If your firm requires permission to conduct economic activity, the competent authorities will issue a no-objection certificate.

Cost of Opening a Abu Dhabi Limited Partnership Company

The following fees vary according to business activity.

• Commercial license issue fee-AED 100

• Commercial register fee-AED 100 

• Signboard fee-AED 150 per square meter

• Operation fee, commercial operation value + 25 percent service enhancement fee

Procedure to Start Your Limited Partnership Firm in Abu Dhabi

Any foreign investor must obtain approval from the General Directorate of Residency and Foreigners Affairs.

Finalize Trade Name

Follow the guidelines of trade name registration – Abu Dhabi and get your trade name registered.

Note for Foreign Investors

Any foreign investor must obtain approval from the General Directorate of Residency and Foreigners Affairs.

Provisional Permission

You will also need to obtain provisional permission, which is a document that allows you to apply for a company license.

Further Approval

Depending on the nature of your firm, you may also need to acquire permission from other appropriate authorities. For example, if your firm is in the insurance industry, you may require clearance from the insurance authority; similarly, if your company is in the healthcare industry, you may need approval from the health ministry.

License

You can apply for a business license online or in person at a Department of Economic Development (DED) customer service center.

If you are looking forward to a business set up in Abu Dhabi, then we at Commitbiz have time-tested options for registration and establishment of a modern and profitable business. All you need to do is contact us today and get a free consultation. We assist with issues regarding business registration, visa registration, licensing of business, and many other incorporation services.