Adding a partner to a commercial license in Dubai is an important strategic step for entrepreneurs and companies looking to expand their activities or enhance their competitive capabilities. Dubai is one of the most prominent global destinations for investment, providing an attractive and advanced economic environment that encourages innovation and growth. The process of adding a partner is characterized by flexibility and simplified procedures that make it easier for investors to achieve their business goals without bureaucratic complications. Whether the new partner is an individual or an institution, this step allows the company to benefit from additional resources, new expertise, and wider business networks, which enhances the chances of success and growth in the local and international market. Through this article, we will review some details about adding a partner to a commercial license in Dubai .

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Commercial License in Dubai

Obtaining a trade license in Dubai is an essential step for any individual or company wishing to do business within the emirate. As a global business hub, Dubai offers a favorable environment for investment, with flexible and supportive business regulations. A trade license gives its holder the right to practice legal business activities either within Dubai or in its free zones. The license is issued by the Dubai Department of Economic Development (DED) or by the various free zone authorities, depending on where the company is established. There are several types of trade licenses in Dubai, including commercial, industrial, professional, and tourism licenses, with the type of license depending on the nature of the activity the company wishes to practice. To ensure the successful issuance of the license, a set of basic documents must be submitted, such as the company’s articles of association, choosing a trade name, and determining the appropriate legal structure for the company. A trade license also makes it easier for investors to establish their companies and start doing business, while benefiting from many facilities such as tax exemptions, government support for startups, and advanced infrastructure. Whether you are planning to set up a company in the free zones or within Dubai, obtaining a trade license is an ideal start to entering the promising and thriving Dubai market.

How to add a partner in a commercial license in Dubai

Adding a partner to a commercial license in Dubai requires following a set of steps that ensure that the commercial license is legally amended and all official requirements are met. Here’s how to do it:

1. Review the partnership agreement: Before starting the formal procedures, the parties involved must agree on the terms of the partnership such as ownership percentage, profits, and responsibilities.
2. Obtaining approval from relevant authorities: In some cases, it may be necessary to obtain approval from some relevant government authorities, depending on the type of business activity or the sector in which the company operates.
3. Submitting the application to the Department of Economic Development: The official application to add a new partner is submitted through the Dubai Department of Economic Development (DED), where the required forms are filled out and fees are paid.
4. Signing the contract before a notary public: After the approval of the Department of Economic Development, the new partnership contract must be signed before a notary public for official approval.
5. Update the commercial license: After completing the procedures and approving the new partnership, the commercial license will be modified and the partners’ data will be updated.
6. Paying the final fees: The process may include paying additional fees to amend the license, which vary depending on the type of license and business activity.
7. Adding a partner to a business license is a beneficial step for growth and expansion, and must be done carefully to ensure that all parties are compatible and their rights are protected.
8. Prepare the required documents:

• A copy of the current business license.
• Current partnership contracts, if any.
• The new partner’s passport and a copy of his residency if he is a non-citizen.
• Commercial license amendment form.
• New Partnership Agreement.

Advantages of adding a partner to a Dubai business license

Adding a partner to a commercial license in Dubai has many advantages that contribute to strengthening the company and expanding the chances of success. The most prominent of these advantages are:

1. Increased capital: The entry of a new partner provides additional sources of financing, which helps in expanding the business and implementing new projects without the need to borrow or incur debt.
2. Diversifying expertise and skills: Adding a partner brings new expertise and skills in different areas such as management, marketing, or operations, which enhances the company’s ability to compete and grow.
3. Sharing responsibilities and risks: Having a partner helps share administrative and operational responsibilities, which reduces the burden on the founding partner. Also, sharing financial and commercial risks with the partner reduces the pressure that the company may face in the event of crises.
4. Expanding your network: The new partner may have a broad network of relationships that can help open new markets or attract new customers and business partners.
5. Improved negotiating power: The entry of a new partner strengthens the company’s position in negotiating with suppliers, customers, or even financial institutions, where the company is larger and more influential.
6. Supporting growth strategies: The new partner may have a vision and growth strategy that aligns with the company’s future goals, helping to steer the business in more successful and sustainable directions.
7. Enhancing credibility and reputation: Adding a partner, especially one with a good reputation in the market, can enhance the credibility of the company and increase the confidence of customers and investors in it. Adding a partner in the commercial license is a strategic step that achieves many benefits, but it must be done with caution and after careful study to ensure the compatibility of common goals and interests.

Establishing a company in Dubai with a local partner

Establishing a company in Dubai with a local partner is a popular option for those looking to enter the UAE market. UAE law requires foreign investors in certain economic activities to have a local partner who owns 51% of the company, while the foreign investor retains 49%. This system allows foreign investors to benefit from Dubai’s thriving business environment, while receiving the local support necessary to navigate the market and ensure compliance with local laws. Having a local partner offers several advantages, such as facilitating legal procedures and obtaining the necessary licenses more quickly. A local partner can be an individual or a local company, which helps to build trust and credibility with local clients and government entities. In addition, a local partner provides a deeper understanding of the market and business customs, making it easier for a new company to succeed and adapt to economic changes in the region. Thanks to Dubai’s strategic location as a hub for trade and investment, establishing a company with a local partner is an important step in enhancing business opportunities and entering new markets, whether in the UAE or across the Gulf and Middle East.

Establishing a company in Dubai with a local partner is not only about complying with the laws, but it also opens up new horizons for business cooperation and benefiting from local expertise. Having a local partner can help build strong relationships with local suppliers and distributors, and helps avoid the challenges that foreign companies may face in fully understanding the local market. Moreover, this type of partnership enhances the ability to exploit investment opportunities in Dubai , which is considered a global hub for business and finance. By cooperating with a reliable local partner, the new company can benefit from government privileges, such as tax exemptions and available financing, and be eligible for the facilities provided by the government to promote foreign investments. Thanks to Dubai’s advanced infrastructure and continuous government support for the business sector, startups can achieve sustainable growth and open up wide business opportunities in various sectors. In short, partnering with a local partner in Dubai is a strong strategic step that helps investors achieve success and prosperity in a dynamic and thriving business environment, enhancing the company’s ability to compete locally and regionally.

Conditions for obtaining a commercial license in Dubai and adding a partner to it

Obtaining a commercial license in Dubai and adding a partner requires following specific conditions and procedures set by the Department of Economic Development in Dubai. Here are the basic conditions:

1. Before starting any procedures, you must determine the type of business activity you wish to practice. There are more than 2,000 business activities available in Dubai, and each type of activity requires specific licenses.
2. You must choose the appropriate legal structure for your company, such as a limited liability company (LLC), a partnership, or a branch of a foreign company. If you want to add a local partner, the most appropriate structure will often be an LLC.
3. In some activities, the law requires a local partner to own 51% of the company, while a foreign investor can own 49%. In free zones , an investor can own the company entirely without a local partner.
4. A trade name must be chosen that complies with legal regulations and does not violate the general standards for trade names in Dubai. An application must be submitted to the Department of Economic Development to reserve the name.
5. An application must be submitted to obtain initial approvals from the relevant government authorities to practice the commercial activity.
6. The company’s articles of association must be prepared, specifying the partners’ shares and powers, and the contract must be signed before a notary public.
7. If you wish to add a partner later, you must amend the articles of association, submit an application to amend the commercial license by adding the partner, and submit the partner’s documents such as passport and residence if he is a foreigner.
8. One of the conditions for obtaining a commercial license in Dubai is the existence of an actual headquarters for the company. A lease contract registered with the competent authorities must be submitted.
9. After fulfilling all requirements and submitting documents, the required fees must be paid to issue the commercial license or amend it to add a partner.
10. After completing all procedures, the commercial license is issued, and the company can start practicing the business activity legally.
11. Adding a partner to a commercial license requires submitting an official application to amend the license with the necessary documents for the new partner, including the amended partnership contract, signing it before a notary public, and paying the required fees to complete the addition. These procedures are necessary to ensure that the process is conducted legally and in an orderly manner.

In conclusion, adding a partner to a business license in Dubai is a strategic move that can enhance a company’s capabilities and open new horizons for growth and expansion. Whether the goal of adding a partner is to increase capital, bring in new expertise, or strengthen presence in the local market, this step has multiple benefits that contribute to achieving success. With an encouraging business environment and clear and easy regulatory procedures, investors in Dubai can take advantage of this opportunity to build strong and sustainable partnerships. It is important that this process is carried out in accordance with the applicable legal frameworks to ensure the rights of all parties and enhance the chances of future success.