Partnership-en-Commendam Company Formation

A partnership-en-commendam in Dubai refers to a partnership consisting of:

  • 1 or more joint general partners who bear unlimited liability, i.e., are responsible for the company’s profits, losses, debts, and obligations, and
  • 1 or more limited partners (or partners en-commendam), who only purvey capital but are not responsible for the liabilities of the firm except to the value of their respective share in the capital

According to corporate law, all joint partners in a partnership-en-commendam are required to be nationals of the UAE due to partners involved in financial commitments in a limited partnership. The partners are together and severally answerable for all of the company’s money owed. In addition, A limited partner may not participate in the management or have one’s name appear in the name of the partnership.

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What is Partnership-en-Commendam in Dubai?

It consists of

  • Joint general partners (can be more than one), each of whom is liable to the full extent of the law.

  • Limited partners (can be more than one), who don’t own responsibility for the liabilities apart from the value of their share capital

Should partners involved in Partnership-en-Commendam be UAE nationals?


Are the partners answerable to the company’s money owned?

In Partnership-en-Commendam, partners are together and are answerable.

Should a limited partner participate in the management?


Can a limited partner become personally liable?

 If they participate much in the management, their liability becomes unlimited.