The LLC Business Partnership Agreement is a fundamental document required when establishing a limited liability company in the United Arab Emirates. It serves as the primary governing document that defines the relationship between partners, their capital contributions, profit-sharing arrangements, and management responsibilities. This agreement must comply with UAE Commercial Companies Law and related regulations, including specific provisions for foreign ownership, local partner requirements, and business licensing. It's particularly crucial for international investors and local partners forming business ventures in the UAE, whether in mainland jurisdictions or free zones. The document needs to address both mandatory legal requirements and practical operational aspects of running the business, including decision-making processes, share transfer restrictions, and dispute resolution mechanisms aligned with UAE legal framework.
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1. Parties: Identification of all partners, including full legal names, addresses, and nationality details as required by UAE law
2. Background: Context of the partnership formation, business objectives, and confirmation of partners' intention to form an LLC
3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation
4. Formation and Registration: Details of company formation, trade name, registration process, and compliance with UAE Commercial Companies Law
5. Business Purpose and Scope: Detailed description of permitted business activities aligned with UAE licensing requirements
6. Capital and Financing: Share capital structure, initial contributions, and mechanisms for additional funding
7. Shareholding Structure: Distribution of shares, share classes, and compliance with UAE ownership requirements
8. Management and Control: Appointment of managers, powers, responsibilities, and decision-making processes
9. Partners' Rights and Obligations: Detailed rights and responsibilities of all partners, including voting rights and participation in management
10. Financial Matters: Profit distribution, loss allocation, accounting practices, and audit requirements
11. Transfer of Shares: Procedures for share transfers, right of first refusal, and UAE-specific transfer restrictions
12. Term and Termination: Duration of partnership, renewal terms, and termination circumstances
13. Confidentiality: Protection of company and partner confidential information
14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law provisions
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Competition: Restrictions on partners' involvement in competing businesses - include when partners have other business interests
2. Intellectual Property Rights: IP ownership and usage rights - include when the business involves significant IP assets
3. Employee Matters: Guidelines for hiring, compensation, and HR policies - include for larger operations
4. Islamic Finance Compliance: Specific provisions ensuring Shariah compliance - include if partners require Islamic finance principles
5. Local Partner Arrangements: Specific provisions regarding nominee arrangements - include if using UAE local partner structures
6. Free Zone Specific Provisions: Special provisions for free zone operations - include if company is registered in a free zone
7. Branch Operations: Regulations for branch offices - include if business plan includes multiple locations
1. Schedule 1 - Business Plan: Detailed business plan including market analysis, financial projections, and operational strategy
2. Schedule 2 - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contribution, including valuation of any non-cash assets
3. Schedule 3 - Shareholder Details: Complete information about each shareholder including passport copies and contact details
4. Schedule 4 - Company Management Structure: Organizational chart and management roles
5. Schedule 5 - Reserved Matters: List of decisions requiring special approval or unanimous consent
6. Schedule 6 - Share Transfer Procedures: Detailed procedures and forms for share transfers
7. Appendix A - Power of Attorney Templates: Standard forms for various powers of attorney required under UAE law
8. Appendix B - Company License and Registration Documents: Copies of all official registration documents and licenses
9. Appendix C - Specimen Signatures: Authorized signatures of all partners and key management personnel
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