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.
Setting up a business in Dubai envisages huge profit potential, tax exemptions, world-class infrastructure, and modern amenities. Commitbiz helps global entrepreneurs, businessmen, and corporates in setting up their company in Dubai. Our team is well equipped to help you manage company formation procedures and formalities. Our experts take care of the banking, visa, legal, and licensing formalities, to let corporates carry on smoothly with the fruition of their strategic vision and business objectives. Should you decide to open a business in Dubai, don’t hesitate to contact us, even if it’s just for a friendly advice.
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.