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LLC Business Partnership Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

LLC Business Partnership Agreement

"I need an LLC Business Partnership Agreement for a technology consulting company to be established in Dubai, UAE, between three partners (one UAE national and two foreign investors), with the UAE national holding 51% shares but profit distribution agreed at different percentages."

Document background
The LLC Business Partnership Agreement is a fundamental document required when establishing a limited liability company in the United Arab Emirates. It serves as the primary governing document that defines the relationship between partners, their capital contributions, profit-sharing arrangements, and management responsibilities. This agreement must comply with UAE Commercial Companies Law and related regulations, including specific provisions for foreign ownership, local partner requirements, and business licensing. It's particularly crucial for international investors and local partners forming business ventures in the UAE, whether in mainland jurisdictions or free zones. The document needs to address both mandatory legal requirements and practical operational aspects of running the business, including decision-making processes, share transfer restrictions, and dispute resolution mechanisms aligned with UAE legal framework.
Suggested Sections

1. Parties: Identification of all partners, including full legal names, addresses, and nationality details as required by UAE law

2. Background: Context of the partnership formation, business objectives, and confirmation of partners' intention to form an LLC

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Formation and Registration: Details of company formation, trade name, registration process, and compliance with UAE Commercial Companies Law

5. Business Purpose and Scope: Detailed description of permitted business activities aligned with UAE licensing requirements

6. Capital and Financing: Share capital structure, initial contributions, and mechanisms for additional funding

7. Shareholding Structure: Distribution of shares, share classes, and compliance with UAE ownership requirements

8. Management and Control: Appointment of managers, powers, responsibilities, and decision-making processes

9. Partners' Rights and Obligations: Detailed rights and responsibilities of all partners, including voting rights and participation in management

10. Financial Matters: Profit distribution, loss allocation, accounting practices, and audit requirements

11. Transfer of Shares: Procedures for share transfers, right of first refusal, and UAE-specific transfer restrictions

12. Term and Termination: Duration of partnership, renewal terms, and termination circumstances

13. Confidentiality: Protection of company and partner confidential information

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law provisions

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Non-Competition: Restrictions on partners' involvement in competing businesses - include when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights - include when the business involves significant IP assets

3. Employee Matters: Guidelines for hiring, compensation, and HR policies - include for larger operations

4. Islamic Finance Compliance: Specific provisions ensuring Shariah compliance - include if partners require Islamic finance principles

5. Local Partner Arrangements: Specific provisions regarding nominee arrangements - include if using UAE local partner structures

6. Free Zone Specific Provisions: Special provisions for free zone operations - include if company is registered in a free zone

7. Branch Operations: Regulations for branch offices - include if business plan includes multiple locations

Suggested Schedules

1. Schedule 1 - Business Plan: Detailed business plan including market analysis, financial projections, and operational strategy

2. Schedule 2 - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contribution, including valuation of any non-cash assets

3. Schedule 3 - Shareholder Details: Complete information about each shareholder including passport copies and contact details

4. Schedule 4 - Company Management Structure: Organizational chart and management roles

5. Schedule 5 - Reserved Matters: List of decisions requiring special approval or unanimous consent

6. Schedule 6 - Share Transfer Procedures: Detailed procedures and forms for share transfers

7. Appendix A - Power of Attorney Templates: Standard forms for various powers of attorney required under UAE law

8. Appendix B - Company License and Registration Documents: Copies of all official registration documents and licenses

9. Appendix C - Specimen Signatures: Authorized signatures of all partners and key management personnel

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries

Retail

Technology

Professional Services

Manufacturing

Trading

Real Estate

Healthcare

Education

Hospitality

Construction

Financial Services

Logistics

Media and Entertainment

Food and Beverage

Consulting

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Business Development

Risk Management

Operations

Executive Leadership

Investment

Corporate Governance

Strategy

Relevant Roles

CEO

Managing Director

Business Development Manager

Legal Counsel

Chief Financial Officer

Company Secretary

Compliance Officer

Operations Director

Investment Manager

Partnership Manager

Corporate Lawyer

Finance Director

Business Owner

Entrepreneur

General Manager

Risk Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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