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Partnership License Agreement for United Arab Emirates

Partnership License Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates a business partnership, defining the terms and conditions under which partners operate their business in the United Arab Emirates. The agreement complies with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and includes provisions for partnership structure, capital contributions, profit sharing, management rights, and regulatory compliance requirements specific to the UAE jurisdiction. It serves as both a foundational document for the partnership and a compliance tool for obtaining necessary licenses from relevant authorities.

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What is a Partnership License Agreement?

The Partnership License Agreement is a crucial document required when establishing a formal business partnership in the United Arab Emirates. It serves multiple purposes: securing necessary business licenses, defining partner relationships, and ensuring compliance with UAE Federal Law No. 32 of 2021 and related regulations. This document is essential for both local and foreign partners seeking to establish a business presence in the UAE, whether in mainland UAE or free zones. The agreement must address specific UAE requirements including local agent provisions (if applicable), capital requirements, and licensing conditions. It typically includes detailed sections on partner obligations, profit sharing, management structure, and regulatory compliance, making it a fundamental document for business establishment and ongoing operations in the UAE market.

What sections should be included in a Partnership License Agreement?

1. Parties: Identification of all partners, including full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the partnership formation and brief description of partners' business objectives

3. Definitions: Definitions of key terms used throughout the agreement, including UAE-specific legal and regulatory terms

4. Partnership Structure: Legal form of partnership, registration details, and compliance with UAE Commercial Companies Law

5. Business Scope: Detailed description of partnership's permitted activities under the license

6. Capital Contribution: Details of partners' capital contributions, including valuation of non-cash contributions as per UAE law

7. Profit and Loss Sharing: Distribution of profits and losses among partners, including calculation methods

8. Management and Control: Partnership management structure, voting rights, and decision-making processes

9. Partner Rights and Obligations: Detailed rights and responsibilities of each partner under UAE law

10. Term and Renewal: Duration of partnership and renewal provisions

11. Regulatory Compliance: Obligations to comply with UAE laws, licensing requirements, and regulatory updates

12. Termination: Grounds and procedures for partnership termination under UAE law

13. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction for disputes

What sections are optional to include in a Partnership License Agreement?

1. Non-Competition: Restrictions on partners engaging in competing businesses, used when partners have other business interests

2. Intellectual Property: IP ownership and usage rights, included when partnership involves significant IP assets

3. Partner Exit Mechanism: Detailed procedures for partner withdrawal or exit, important for larger partnerships

4. Additional Capital Contributions: Procedures for future capital calls, relevant for partnerships anticipating growth

5. Employee Matters: Guidelines for employment and staff management, needed when partnership will have employees

6. Banking Operations: Procedures for banking and financial operations, important for partnerships handling significant funds

7. Insurance: Insurance requirements and coverage details, crucial for high-risk businesses

8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain markets

What schedules should be included in a Partnership License Agreement?

1. Schedule 1 - Partner Details: Detailed information about each partner, including contact details and authorized representatives

2. Schedule 2 - Capital Contributions: Itemized list of initial capital contributions from each partner

3. Schedule 3 - Business Plan: Initial business plan and strategic objectives of the partnership

4. Schedule 4 - License Details: Copy of partnership license and related permits

5. Schedule 5 - Management Procedures: Detailed procedures for partnership management and decision-making

6. Schedule 6 - Profit Distribution Policy: Detailed methodology for calculating and distributing profits

7. Appendix A - Required Forms: Standard forms required for partnership operations and regulatory compliance

8. Appendix B - Power of Attorney: Template for power of attorney documents required under UAE law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions













































Clauses








































Relevant Industries

Professional Services

Trading

Manufacturing

Real Estate

Technology

Consulting

Retail

Healthcare

Education

Construction

Hospitality

Financial Services

Media and Entertainment

Transport and Logistics

Relevant Teams

Legal

Compliance

Corporate Governance

Business Development

Finance

Operations

Risk Management

Corporate Affairs

Commercial Operations

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Compliance Officer

Business Development Manager

Operations Director

Finance Director

Company Secretary

Partner

Managing Partner

Commercial Director

Risk Manager

Business Owner

Corporate Lawyer

Investment Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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