How to Find Business Partners in Dubai?

Dubai has always been an attractive destination with a welcoming business ambiance for foreign businesses, investors, and traders from all around the globe. Along with a wide range of business prospects and rewards, Dubai also offers business-friendly company setup policies for budding entrepreneurs who wish to start their firm in the United Arab Emirates. However, there are certain challenges that the business owner might have to tackle while establishing a firm in Dubai. One of the common challenges is forming a business partnership in Dubai. This law of partnership implies to other parts of the UAE as well.

This blog will be a complete guide for you to find business partners in Dubai, benefits of business partnership, types of business partners in the UAE and make sure that you don’t miss out on any important fact.

Business Partnership in Dubai

According to the UAE Commercial Code, any foreign investor or trader who wants to start his company in Dubai or any other emirate of UAE must have a UAE national as a business partner. 

On the other hand, looking for a business partner in Dubai can be tough, especially when you are new in the country. Moreover, searching for someone reliable and motivated towards your business outlook can be more challenging. Therefore, it is important to find someone acceptable and worth your time and energy, or else the business will become a mess. 

For that purpose, the investor must start the procedure of searching for a business partner in Dubai by seeking UAE local sponsorship. A UAE local service agent can be added as a nominee shareholder in foreign-invested mainland companies, thus bringing order in managing the company or business. 

The business professionals at Shuraa can help you in finding an abiding business partnership in Dubai that is acceptable for your business. 

According to the United Arab Emirates Companies Law, the Mainland companies that have foreign investment involved must mandatorily consider a business partner in the UAE. Moreover, the partner must be a UAE national or a corporate entity running within UAE. Therefore, looking for a business partner in Dubai has always been a demanding task for foreign business owners and start-up companies. 

Who are Business Partners? 

Company set up in UAE Freezones offers the advantage of 100% foreign ownership. Therefore, freezones companies are free from this liability. However, companies set up in UAE Mainland require the association of a business partner.  

A corporate business partner or a local business partner, the oversea company can choose either of both. A corporate business partner refers to a corporate body that is fully owned by UAE nationals. This entity also includes a board of directors. A local business partner is a local service agent with the nationality of UAE. 

Business partners are compulsory for those companies that are involved in trading and commercial activities. Involving a business partner helps in understanding the market situation and getting proper knowledge and insights as well. Besides, the company doesn’t have to share the earned profit and revenue with the business partner. 

Having a business partner in Dubai allows you to relish the benefits of starting a Limited Liability Company(LLC) in Dubai. Hence, it is necessary to regulate per the UAE’s Commercial Companies law and establish a Business Partnership in Dubai.

Read posted: Start a New Business in Dubai in Six Simple Steps

Benefits of having a business partner 

Although 49% of the company shares split in the favor of the local partner, there are several benefits that an expat entrepreneur can reap from this kind of partnership. 

• Minimal or no sharing of company profits with the partner
• No involvement of the partner in the company earnings 
• Full control of the business lies with the foreign entrepreneur 
• No interference of the local partner in business management 
• Direct trade with the local market through partner’s connections 
• Opening unlimited branches throughout the UAE
• Pitch for a host of private and government projects 
• Unrestricted access to the wider UAE economy 
• Enjoy investor status within the UAE 
• Obtain residence visa for the individual as well as family

Things to consider while looking for a business partner in Dubai 

With the flourishing of foreign businesses in Dubai, finding a business partner has become easy. Even though the partners do not participate in business activities or earn a share from the company profits, they receive a passive income annually just being listed as a business partner in the documents. 

As more and more people are planning to launch their brand in the UAE’s lucrative market, business partnership-related offenses are also arising. Therefore, it is important to keep things in command to avoid any chaos. Hence, you should keep certain pointers in mind while choosing a local partner for your business. 

• Various government departments that would be regulating the business sponsorship; 
• The local partner has to be a silent partner with a fixed annual income or an actual business investor; 
• The local partner has to be a corporate entity or an individual; 
• The role of business partner in case of business acquisition or succession. 

These are some of the significant points that you must consider before choosing a business partner. However, the list doesn’t end here. The business consultants at Shuraa can take you through the complete guide of choosing a business partner rightfully for the effective running of the business. 

Who can be the best Business Partner – Individual or Corporate Body? 

Choosing a business partner is a compulsion in a mainland company formation. However, certain procedures might vary for individual partners and corporate partners. 

Benefits of choosing an individual partner : 

• Minimal paperwork
• Cost-effective, as you have to pay only one person 
• Better networking if the individual is popular and well connected 

Benefits of choosing a corporate entity as a business partner : 

• Lesser legal formalities
• Better time and asset management due to corporate experience 
• No requirement of succession planning 
• No interference in the foreign business 

Conclusion 

As per the law enforced by the UAE government, foreign entrepreneurs have to choose a local business partner to set up a company in Dubai mainland. The whole idea of sharing almost half of the business is naturally off-putting, but it comes with unique rewards. This policy not only ensures an easy establishment of business but also enhances trouble-free trade all over UAE. Moreover, the business gets convenient access to the UAE market through partner connections. Thus, finding a dependable business partner is a vital aspect of business formation in Dubai. 

The best way to find a business partnership in Dubai is through business consultants. So, if you are looking for a business partner in Dubai, Shuraa Business Setup can help you secure a trusted and reliable partnership in the UAE. We also ensure that the company is documented on your terms and you get to enjoy every grain of profit from your business. 

With our trusted sources in Dubai, we can connect you with the best business service provider that can support you in starting your business trouble-free and with fewer legal formalities. Book a free consultation with us now and get expert advice from Shuraa! 

To get more information on UAE commercial company laws and business partnership policy in Dubai, call on +971 44081900. For chat queries, you can connect on WhatsApp at +971 50 777 5554. You can also send your query to info@shuraa.com.