Investor Rights and Protection Contracts
Investor Rights and Protection Contracts - Secure Your LLC Partnership in Dubai
Investing in the UAE’s economy can be exciting, but it’s crucial to understand your rights and protections. Investor Rights and Protection Contracts are instrumental in defining the terms and conditions that govern your partnership in a Limited Liability Company (LLC) in the UAE.
These contracts serve as a legal framework to ensure your rights, interests, and investments are secured throughout the course of your business venture.
At Shuraa Business Setup, we understand your concerns. That’s why we offer comprehensive Investor Rights and Protection Contracts, tailor-made to ensure operational control within your LLC company.
Do You Need a Local Sponsor for an LLC Company in UAE?
While 100% foreign ownership is now possible for many businesses in the UAE. In recent years, a groundbreaking decree amended the Commercial Companies Law, allowing full foreign ownership in specific sectors. This removed the previous requirement for a minimum 51% local ownership share.
However, the 100% policy applies to a “positive list” of approved activities. This list covers various sectors like manufacturing, agriculture, renewable energy, tourism, and some professional services.
Businesses outside this list may still require local partnership, with the specific percentage often decided by individual emirates. Furthermore, even within the approved activities, local authorities retain some discretion.
Therefore, finding a sponsor with the right knowledge and connections with government agencies is essential for businesses.
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Investor Protection Contracts
While not explicitly mandated by law, Investor Protection Contracts are highly recommended for foreign investors entering into LLC partnerships with local sponsors. These contracts outline the rights and obligations of each party, providing additional security and clarity in the relationship.
Why Businesses Need Investor Rights & Protection Contract
For foreign investors, Investor Right and Protection Contract offer several key advantages, including:
1. Enhanced Security
They provide clear and detailed terms, mitigating potential disputes and ambiguities.
2. Reduced Risk
It minimizes the risk of misunderstandings or power imbalances between partners, leading to a more productive working relationship.
3. Greater Control
It allows foreign investors to maintain a higher degree of control over their business decisions and operations, even with a minority shareholding.
4. Improved Investment Attractiveness
A well-drafted IPC can make your business more attractive to potential investors by demonstrating your commitment to transparency and risk mitigation.
Shuraa's Investor Protection Contracts
Shuraa Business Setup provides 100% operational ownership of the company to the investors at all times. We do this by helping you with the legalities of setting up a business in the UAE and creating strong investor rights and protection contracts.
The contracts are signed by the investor and Shuraa, and there are two witnesses from each side. We have all the right ingredients to become the most reliable business partners for your business in UAE as we have an international team of experts, local skills and good connections with different government agencies.
What’s more is that we even help you with opening a bank account in Dubai and UAE, for bank guarantees as well as help you find the best location for your office in the Emirates.
Our consultants also help with getting official documents notarised in UAE courts. To set up a business in UAE, you are required to get power of attorney, agreement of incorporation, purchase agreement, commercial and translation documents as well as company registration documents attested at the Notary Public Office.
Shuraa Business Setup’s power of attorney allows you to change the local sponsor. Our Side and Service agreement categorically states that our consultancy firm only assists the investor in company incorporation in UAE.
We get our investors all necessary approvals from the Department of Economic Development, Ministry of Labour as well as work permits and residence visas.
Our investor protection contracts are valid in all UAE courts, and we offer all these services across the Emirates – in Abu Dhabi, Ras al Khaimah, Sharjah, Ajman and Fujairah.
Why Choose Shuraa?
- Tailored agreement for your specific business needs and risk factors.
- Every clause is drafted in clear and concise language.
- Contracts are signed and certified by two witnesses from each side.
- Reliable Partners who uphold ethical business practices.
Invest with confidence, operate with autonomy
Shuraa Business Setup is dedicated to providing you with the most reliable business partners in Dubai. Our network of consultants, lawyers, PRO executives, and company formation experts collaborates to offer you a holistic solution for your business needs.
Get a free consultation with our legal experts!
Frequently Asked Questions
An Investor Protection Contract is a legally binding agreement between a foreign investor and their local Emirati sponsor in an LLC partnership. It outlines terms, rights, and responsibilities to protect both parties' interests and ensure a transparent and secure partnership.
No, but they are highly recommended for all foreign investors entering into LLC partnerships. They provide valuable security and clarity, especially when dealing with a local sponsor.
Appointing an inactive partner adds an extra layer of protection to your business. Shuraa facilitates this strategic move by helping you find a reliable inactive partner in exchange for an annual fee, enhancing the continuity and security of your business operations.
Absolutely! Our experienced team of legal professionals will guide you through the process and draft a comprehensive IPC that meets your specific needs and protects your interests.
We offer flexible and competitive pricing options tailored to your specific needs and the complexity of your LLC partnership. Contact us for a customized quote.
