Partnership in the UAE

A partnership company is a structure where two or more persons (or legal entities) conduct business together, sharing profits, risks and management. It suits professionals who want to combine expertise without a complex corporate vehicle. Governed by Federal Decree-Law No. 32 of 2021 (UAE Companies Law) and the UAE Civil Code.

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Main partnership forms

1. General Partnership

Available only to UAE nationals.
Partners bear full personal (unlimited) liability.
Management is exercised jointly by partners.
✅ Used sparingly, mainly among Emirati partners.

2. Limited Partnership

Consists of active partners (with unlimited liability) and passive/limited partners (liable up to their contributions).
Limited partners do not participate in day-to-day management.
✅ Common for investment or project-based arrangements.

3. Civil Company — the most popular option

Ideal for professional services: lawyers, architects, consultants, engineers.
May be established by foreigners with a Local Service Agent (LSA) who does not take part in the business.
Liability is proportionate to each partner’s share unless agreed otherwise.
Registered through the DED (e.g., Dubai Department of Economy & Tourism).
✅ Best fit for expert teams and consulting practices.

Core documents

Partnership Agreement / Civil Contract — roles, profit-sharing and governance.
Memorandum of Association (where applicable).
DED trade licence/licence.
NOC from the Local Service Agent (if any partner is a foreigner).

Use-case examples

Sector	Is a Partnership suitable?
Legal services	✅ Civil Company
Engineering consultancy	✅ Civil Company
Medical practice	✅ (for UAE nationals)
Trading or manufacturing	❌ Prefer an LLC
Financial services	❌ Requires another legal form

Looking to set up a Partnership in the UAE?

MIRAD will recommend the right partnership form, prepare all documents and safeguard your business legally.

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What MIRAD does

Select the optimal partnership form for your activity.
Draft the Partnership Agreement, constitutional documents and obtain the licence/licence.
Arrange a reliable LSA for a foreign partner.
Advise on liability, tax and hiring.
Register the entity with the DED and manage the end-to-end process.

FAQ: Partnerships in the UAE

❓ Can a foreigner open a Partnership?
✅ Yes — via a Civil Company with a Local Service Agent (LSA).

❓ How is liability allocated?
✅ General Partnership — unlimited; Limited Partnership — limited for passive partners; Civil Company — proportionate to shares unless agreed otherwise.

❓ How is a Partnership different from an LLC?
✅ Partnerships have higher personal liability but a simpler structure and lighter requirements.

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Partnership Company