How To Add or Remove Partners In Trade License In Dubai?

The UAE offers a dynamic and flexible environment for businesses and offers various opportunities for entrepreneurs to settle their businesses according to their requirements. Every business in the UAE runs on a particular trade license, which can be modified if needed.

You can modify your trade license by adding or removing partners in your trade license. Changing partners in a business license is a common practice for companies in Dubai. However, all partners need to agree on the change and start the process together.

This article covers all the steps to add or remove partners from a trade license in Dubai. From choosing new partners or removing the partner to getting approvals and updating licenses, our business setup experts at Now Consultant help you through the process for a smooth transition.

How Do You Add a Partner To a Trade License In Dubai?

Adding a partner to your trade license is not difficult, and it is followed by the given steps as discussed below:

Identify New Partners

Before adding partners, you need to decide the individuals or entities who will join your business. Choose individuals or entities based on their skills, financial resources, or market expertise.

Shareholder Agreement

In the second step, you need to create a shareholder agreement that clearly outlines the rights and responsibilities of each partner. This should cover important points like capital contributions, profit sharing, decision-making powers, and how to handle disputes. It is recommended that you get help from the business setup experts at Now Consultant to make sure the agreement is thorough and legally binding.

Approvals From Existing Partners

If you already run a partnership business or have a limited liability company (LLC) business structure, you need to get approval from existing partners to add new ones. This step involves updating the existing partnership agreement or articles of association.

New Partner’s Documentation

The new partners of your business trade license must submit the required documents. The documents include a valid passport copy, visa page, Emirates ID, and a No Objection Certificate (NOC) from their current sponsor (if they live in the UAE). If the new partner is a company, submit additional documents, like a board resolution approving the partnership.

Application Submission

After document collection, you need to complete the application form, shareholder agreement, and new partner’s documents. Submit these to the DED either online through the portal or in person at a service center. You need to confirm that all documents are accurate and meet the DED’s requirements to ensure a timely response.

Fees And Approvals

After successful document submission and application submission, you pay the required fees, which vary based on your business type and the number of new partners added to your trade license. The DED will review your application and verify it before granting approval. The timeframe for this process can vary. For the fast and accurate addition of partners in your trade license, you need to approach Now Consultant. 

Licensing and Registration: 

After the application is approved, you will receive an updated trade license with additional partners. Make sure to inform all relevant authorities, such as the Ministry of Human Resources and Emiratisation (MOHRE), Dubai Municipality, and the Federal Tax Authority (FTA), about the changes in your trade license so that you and your partner can perform their activities without facing any problems.

How To Remove Partner In a Trade License In Dubai:

If you want to remove partners in a trade license, it can be done very easily by following the step-by-step process as discussed below: 

Partner Agreement or Company Documents:

In the first step, you need to review the agreement or company documents to find out how to remove partners from the trade license of a company in Dubai. The procedure might be outlined in the shareholder agreement or articles of association. If you are confused about it, get legal advice or hire Now consultant expats to make sure you follow the legal requirements.

Partner’s Permission

It is mandatory to get permission to remove partners from the trade license. All the partners must agree on the removal and start the process together.

Submit Application to DED 

After all partners agree to the removal, inform the DED about the partner’s intent to exit the business license. For that purpose, submit an application to the DED in the same way as for adding partners. Include all necessary documents, such as the partner’s ID and an NOC if needed.

Settle Financial Obligations

It is important to clear any financial obligations of the partner being removed, such as capital contributions, loans, or outstanding payments in the business. If you do not follow this, you will have to bear the legal issues.

Licensing and Registration Update

Once the DED approves the partner’s removal and updates your trade license, you need to notify the updated trade license to the relevant authorities, like MOHRE, Dubai Municipality, and the FTA. You need to make sure to get any required clearances or certificates.

Conclusion:

If you want to add or remove partners to the trade license of your business or company in Dubai, you need expert guidance to fulfill the requirements and meet regulatory compliance. Now Consultant is the best business setup firm in the UAE and Dubai, which offers comprehensive services for adding or removing partners from your trade license in Dubai. 

Our business setup experts assist you with the entire process, including document preparation and application submission. We also help you fulfill all the requirements as demanded by the DED in order to complete your application process successfully. In addition to this, with the help of Now Consultant business setup experts, you can easily perform the process without any risk of fines and penalties.

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