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Business Ownership Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Business Ownership Agreement

"I need a Business Ownership Agreement for a technology startup in Dubai, with three partners (one UAE national holding 51% and two foreign investors splitting the remaining 49%), including specific provisions for intellectual property rights and future funding rounds."

Document background
The Business Ownership Agreement is a crucial document for establishing and maintaining business relationships in the United Arab Emirates. It is essential for any business venture involving multiple owners, whether they are UAE nationals, foreign investors, or corporate entities. This agreement must comply with UAE Federal Commercial Companies Law (Federal Law No. 2 of 2015) and recent foreign ownership regulations. It is particularly important when setting up new businesses, restructuring existing ones, or bringing in new partners. The document covers critical aspects such as ownership percentages, capital contributions, management rights, profit distribution, and exit mechanisms, while ensuring compliance with UAE's specific requirements regarding local ownership, free zone regulations, and commercial registration procedures.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including business purpose and relationship between parties

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Business Structure and Ownership: Details of the legal structure, ownership percentages, and capital contributions

5. Share Capital and Funding: Specification of initial and future capital requirements, share classes, and funding obligations

6. Management and Control: Management structure, voting rights, and decision-making processes

7. Shareholders' Rights and Obligations: Detailed rights and responsibilities of each owner

8. Transfer of Shares: Procedures and restrictions for transferring ownership interests

9. Business Operations: Key operational policies and procedures

10. Financial Matters: Financial management, profit distribution, and accounting requirements

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions on competitive activities by owners

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

14. Term and Termination: Duration of agreement and conditions for termination

15. General Provisions: Standard legal provisions including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Allocation of IP ownership and usage rights - include when the business involves significant IP assets

2. Employee Matters: Key employment policies and restrictions - include for businesses with significant staff requirements

3. Free Zone Specific Provisions: Special provisions for free zone operations - include when business is located in a free zone

4. Islamic Finance Compliance: Provisions ensuring Shariah compliance - include when parties require Islamic finance principles

5. Exit Strategy: Detailed procedures for business sale or IPO - include for larger enterprises or when specifically requested

6. Technology and Data Protection: Technology usage and data protection policies - include for tech-focused businesses

7. Environmental Compliance: Environmental obligations and commitments - include for industries with environmental impact

8. Agency and Distribution Rights: Provisions for commercial agency relationships - include when business involves agency rights

Suggested Schedules

1. Schedule 1 - Share Capital Details: Detailed breakdown of share capital, classes, and ownership structure

2. Schedule 2 - Initial Business Plan: Detailed business plan including projections and strategies

3. Schedule 3 - Management Structure: Organizational chart and management responsibilities

4. Schedule 4 - Reserved Matters: List of decisions requiring special approval

5. Schedule 5 - Key Performance Indicators: Agreed business performance metrics

6. Appendix A - Initial Capital Contributions: Details of each owner's initial capital contributions

7. Appendix B - Company Licenses and Permits: Copies of all required licenses and permits

8. Appendix C - Property Details: Details of any owned or leased property

9. Appendix D - Shareholder Information: Detailed information about each shareholder including ID documents

Authors

Alex Denne

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

Relevant legal definitions














































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Relevant Industries

Retail

Manufacturing

Technology

Professional Services

Real Estate

Healthcare

Education

Financial Services

Hospitality

Construction

Trading

E-commerce

Logistics

Media and Entertainment

Consulting

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Risk Management

Board of Directors

Executive Leadership

Corporate Governance

Business Development

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Owner

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Company Secretary

Investment Manager

Business Development Director

Compliance Officer

Risk Manager

Board Member

Shareholder Relations Manager

Commercial Director

Operations Director

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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