A Civil Partnership (also referred to as a “professional company”) is suitable for conducting professional or service-related activities. It is governed by the provisions of UAE Civil Code and Local Order No. (63) of 1991 relating to the licensing of professionals and craftsman in the Emirate of Dubai. A Civil Partnership can be formed by two or more individuals. The partners do not enjoy limited liability and are jointly liable for any debts or losses of the Civil Partnership, unless otherwise stated in the Civil Partnership Agreement. The Civil Partnership Agreement must be signed by the partners before a Dubai Court notary public.
The Civil Partnership must appoint a UAE national, or a company wholly-owned by UAE nationals, as its Local Services Agent. The Local Services Agent is appointed pursuant to a Local Services Agreement and provides “local services” (such as facilitating the issuance of residency visas and work permits for your employees, and handling the renewal of the professional license each year) in return for an annual services fee. The Local Service Agent does not assume any financial or legal liability for the Civil Partnership.
The partners maintain full ownership and control of the business. However, a general manager may be appointed from among the partners to manage the Civil Partnership. If the manager acts outside the scope of his powers, he shall be personally liable for any loss suffered by the Civil Partnership as a result of his actions.