Adding a partner to a business license in Dubai is an important step towards expanding and developing your business. Dubai offers a unique investment environment that allows entrepreneurs and companies to take advantage of the many opportunities the city offers. By adding a partner, you can increase your capital, gain different experiences, and expand your business networks, which contributes to long-term growth and sustainability. The procedures for adding a partner vary depending on the type of business license and the area in which the company operates, including updating the commercial register and amending the articles of association. This step requires following precise legal procedures to ensure that the company complies with local laws and regulations, ensuring the success and continuity of businesses in Dubai’s dynamic market. We will review several ways to add a partner to a Dubai business license

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How to add a partner in a Dubai business license

Adding a partner to a business license in Dubai requires following a set of legal and administrative steps to ensure compliance with local laws. Here’s how to add a partner:

1. The articles of association are updated to specify the new shareholding percentage and the responsibilities of the new partner.
   The details of the new partnership must be agreed upon by all existing partners.
2. An official application must be submitted to the Department of Economic Development to amend the commercial license.
3. The application includes details of the new partner such as name, nationality, and percentage of ownership.
4. No Objection Certificate (NOC) from the current sponsor if the new partner is employed in the UAE.
5. Pay the required fees to amend the commercial license and add the new partner.
6. After reviewing the application and documents, the amended commercial license is issued, which includes the name of the new partner.
7. The amended partnership contract must be notarized by a notary public to ensure its legal validity.
   After completing these steps, the new partner is officially approved and can participate in the management and operation of the company according to the agreed-upon ratios.

The importance of adding a partner to the Dubai commercial license

Adding a partner to your business license in Dubai is an important strategic step to boost business growth and expand your company. This process offers many benefits that contribute to the development of companies. Here is the importance of adding a partner to your business license:

1. Increase capital: Adding a new partner means pumping additional investments into the company, which enhances its ability to expand, develop new projects and increase available resources.
2. Diversification of experience and skills: The new partner may bring with him a set of different skills and experiences that contribute to improving management and operational processes, which helps the company improve its performance and expand the scope of its services.
3. Risk sharing: Partnership allows responsibilities and financial burdens to be distributed among more than one person, reducing individual risks and increasing the stability of the company.
4. Expanding business networks: The new partner may contribute to expanding the customer and business partner base through his personal and professional relationships, increasing opportunities for growth and profitability.
5. Facilitating regional or international expansion: If the new partner has experience or connections in other markets, this can facilitate the company’s entry into new markets, whether within the UAE or internationally.
   Adding a partner is not only about increasing capital, but also opens up broader horizons for the company’s development and growth, making it more competitive in a dynamic market like Dubai.

Documents required to add a partner to the Dubai commercial license

To add a partner to a business license in Dubai , a set of papers and documents must be submitted to the Department of Economic Development (DED) to ensure the successful completion of the process. The required papers include:

1. The original commercial license that will be modified to add the new partner.
2. Amend the articles of association to include the new partner and details of each partner’s new shares in the company. The contract must be notarized by a notary public.
3. A copy of the new partner’s Emirates ID if he is a resident of the UAE.
4. A copy of the new partner’s passport (whether he is a resident of the UAE or from outside it).
5. If the new partner is employed by another entity in the UAE, a No Objection Certificate (NOC) must be submitted from the current sponsor to allow him to participate in the company.
6. Recent personal photos of the new partner that meet the specifications required by the competent authorities.
7. A copy of the lease contract proving the existence of the company’s headquarters (if it was not previously attached or if it has been changed).
8. The new partner signs all required papers, including the amended articles of association and other documents.
9. Pay the required fees to make amendments to the commercial license.
   After submitting these documents, they will be reviewed by the Department of Economic Development, and if approved, the commercial license will be amended to add the new partner.

Cost factors of adding a partner in a Dubai business license

The cost of adding a partner to a business license in Dubai depends on several factors that vary depending on the type of company, the type of license, and the area in which the company operates (whether in a free zone or on the mainland). The following are the main factors that affect the cost of adding a partner:

1. Commercial License Amendment Fees: Amending the license to add a new partner requires payment of a fee to the Department of Economic Development (DED) or the responsible authority in the free zone. These fees vary depending on the type of business activity and the size of the company.
2. Costs of notarizing the articles of association: Amending the articles of association to add a new partner requires notarizing them with a notary public. Notarization fees vary depending on the number of pages and the partners’ shares.
3. No Objection Certificate (NOC) Fees: If the new partner is employed by another entity in the UAE, he may be required to obtain a No Objection Certificate (NOC) from his sponsor, and this certificate may be subject to a specific fee depending on the employer’s policy.
4. Legal Consultation Costs: Companies may need legal advice to complete the partner addition process correctly, and this includes preparing the required contracts and legal documents, which leads to additional costs related to consultations.
5. Additional costs in free zones: If the company is in a free zone, there may be additional fees related to amending the articles of association and adding a partner. These fees vary from one free zone to another.
6. License Renewal Costs (if applicable): In some cases, it may be necessary to renew a business license if it is close to expiring during the amendment process, which may result in additional costs.
7. Government filing fees: These include filing fees and other government procedures that may be required as part of the adjustment process, such as registration and filing fees.
   Depending on these factors, the cost of adding a partner can vary significantly, so it is best to check with the relevant authorities or consult legal experts to get an accurate estimate based on the company’s circumstances and the type of business.